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CNY-denominated Securities

1. Account Opening ?

• What kind of account do I need to open in order to trade listed CNY-denominated securities?
Clients can trade CNY-denominated products by opening a cash or margin securities account at CSL.

• Do existing clients need to fill in additional documents in order to trade listed CNY-denominated securities?
No extra documents are required.

2.Trading

• How could I invest in listed CNY-denominated products?
By opening account at CSL, clients can invest in the listed CNY IPO securities as well as the secondary market trading of CNY-denominated products.

• How much is the handling charge of investing in listed CNY-denominated securities? Is there any difference from investing in HK stocks?
Handling charges include stamp duty, SFC transaction levy, SEHK trading fee, CCASS Stock Settlement Fee and brokerage commission. The formula of calculating the handling charges of CNY-denominated products and existing HKD-denominated securities is similar. The only difference is that they are settled in different currencies.
• How to calculate stamp duty for trading on listed CNY-denominated securities?
The calculation of stamp duty is as follows:
CNY ¥ 1.00 per CNY ¥ 1,000.00 on consideration.

3.IPO?


• How could I subscribe CNY-denominated IPO?

Clients could access our website: (http://www.cfsg.com.hk) and fill in the online application form. Clients could also submit our internal forms or yellow forms to our head office and branches. The successful allotment shares will be directly deposited at clients’ account.
• What is the handling charge for trading listed CNY-denominated IPO?

Clients pay handling charge of trading CNY-denominated products including SFC transaction levy, SEHK trading fee and brokerage commission.
• How much is the handling charge for the IPO application?
CNY ¥ 85.00 per application.

4.Settlement?

• How to deposit CNY in my CSL trading account?
Clients can deposit CNY cheque either at head office and branches. Clients can directly deposit CNY cheque in our bank accounts as follows:

The Hong Kong and Shanghai Banking Corporation Limited
Beneficiary:	Celestial Securities Limited	Celestial Commodities Limited
Bank A/C No.:	102-281367-209	511-245706-209

• Can I deposit or withdraw CNY in cash?
We are sorry that CNY cash deposit and withdrawal are not accepted.

• Will I get back CNY for my sell orders of listed CNY-denominated securities?
Currently, trading of listed CNY-denominated securities on SEHK would be cleared in CNY through CCASS. Clients will receive CNY after they sell CNY-denominated securities.

• Do I keep separated account for CNY and HKD or it is a consolidated account?
Clients keep one single account to trade products in CNY or HKD. Daily and monthly statements will show stocks holding and cash balance in HKD and CNY separately.
When I invest in listed CNY-denominated securities, is the daily exchange limit applicable?
If an individual exchanges CNY with a bank in Hong Kong, there is a maximum daily exchange limit of ¥20,000. However, this limit does not apply to listed CNY-denominated securities.

• Is there any upper limit to deposit CNY for settlement purposes?
No, there is no upper limit.

• Do I need to have a CNY bank account for CNY withdrawal?
Client should have a CNY bank account for CNY withdrawal.

• How will the CNY withdrawal instruction be processed?
The fund being withdrawn will be deposited in the CNY bank account registered under client’s name either by bank transfers, cheque deposits or CHATS.

• Is there any handling charges to deposit CNY cheque?
It is free of charge.

• Do you provide auto bank in transfer service for CNY?
We only provide auto bank in transfer service for HKD cash securities trading account.

• Will HKD auto bank in service be stopped if on the settlement day I have insufficient funds to settle CNY-denominated securities?
Yes, the HKD auto bank in service will be stopped if there is insufficient funds to settle the CNY-denominated securities transactions. If clients would like to withdraw the remaining balance (HKD or CNY), clients could send their signed withdrawal instruction form to us by fax number (852) 2820-0606, email, post or in person to our head office and branches.

• What if I am an Investor Participant of CCASS?
For those clients who would like to settle the CNY products transaction through their own custodians or Investor Participant Accounts, their custodians or themselves have to set up their own CNY Designed Bank Account at CCASS for settlement purpose.

5. Dividends ?

• How will I receive dividend from CNY-denominated securities?
Dividend of listed CNY- denominated securities will be paid in CNY or other currencies. Due to the exchange controls and restrictions applicable to CNY, the product issuers may not always obtain sufficient amounts of CNY in a timely manner to pay dividends in CNY. As a result, dividends may be paid in currencies other than CNY.

• How will I receive or pay HKD or CNY for any dividend payoff / charge from CNY-denominated listed securities? All payoff and handling fee from CNY-denominated listed securities are in CNY.