Notice on the launch of the consolidated buying power function
In order to enhance the trading experience of our clients and to facilitate their flexible use of assets, CMB International Securities ("the Company") launch the consolidated buying power (also known as unified buying power) on 19th September 2022, whereby the Company's trading system will unify the calculation of the collateral value of your Hong Kong dollar and US dollar cash and related assets, for trading in Hong Kong stocks (including grey market) and US stocks, as well as to subscribe for IPO shares in the Hong Kong market.
The consolidated buying power is a combined buying power trading function for cash and margin accounts. You don't need to apply for this service. The system will combine the collateral value of your Hong Kong dollar, US dollar and related assets in the Hong Kong and US stock markets (collateral value buying power is only applicable to margin accounts) to create a maximum buying power for trading Hong Kong and US stocks etc, such as (1Stocks listed in the Hong Kong stock market, exchange traded funds(ETF), and derivative products such as warrants and bull/bear contracts; (2) Hong Kong grey market; (3) IPO in the Hong Kong stock market; (4)Stocks listed in the US stock market, exchange traded funds(ETF) etc.
In the future, the Company will introduce more consolidated buying power services in more currencies, markets and products depending on the needs of our clients.
1) No currency exchange will be made for you after you have made a transaction in a currency other than the settlement currency, for example, buying US stocks in Hong Kong dollars or Hong Kong stocks in US dollars, and there is no settlement of any currency exchange involved.
2) The Company does not charge you for the consolidated buying power, but you may incur interest charges as a result of using this function which may result in a negative balance in your HKD or USD. For example, if you buy a US stock worth US$100 using the Hong Kong dollar buying power, and you do not have any US dollar cash in your account, the client's available balance in US dollars after buying the stock will be negative US$100 (before taking into account fees such as commissions and transaction fees). If you do not deposit sufficient USD on or before the settlement date, your account will be charged interest from the settlement date.
3) For margin accounts, interest will be charged on transactions involving financing, taking into account the consolidated buying power and the financing amount of the underlying assets of Hong Kong and US stocks held in your account.