RMB Denominated Securities

Mighty Brokerage (Asia) Ltd provide serves Hong Kong stocks trading services for customer, it also serves in RMB stocks. However, customers are required to have a clear understanding before investing RMB-denominated securities trading and settlement procedures and understood the associated risks. Mighty Brokerage (Asia) Ltd is disclosed to customers and provides the following information about the important information and transaction service program.

RMB Securities settlement and clearing

RMB-denominated securities trading relates to the settlement and clearing of the currency (includes brokerage commission, transfer registration fee, dividend collection fees, etc.) are calculated and paid in RMB. The stamp duty, SFC transaction levy and Stock Exchange trading fee is calculated in HK currency, payment and all amount and the cost settlement, Mighty Brokerage (Asia) Ltd is denominated to convert from RMB to HK currency be recorded and appears on the client's daily statement.

Related exchange rates agreements and／or definitions

Stamp duty, SFC transaction levy and Stock Exchange trading fee, Mighty Brokerage (Asia) Ltd will be based on each trading day prescribed by the Monetary Authority at 11 am on the HKEx website published before the exchange rate of RMB against Hong Kong currency calculated for our clients which will be recorded and displayed on the customer's daily statement.

Opening RMB Securities account

Customers must have registered our Company’s securities trading account before trading. Existing customers do not need to open another account for RMB securities trading. New customers may apply for a new account through our homepage under Online account.

RMB securities trading and IPO

RMB-denominated securities trading methods and applications for IPO is basically same as Hong Kong stocks. Customers may visit Mighty Brokerage (Asia) Ltd homepage and look for "transaction log" for on-line transactions or proceed by using mobile phone application for trading. Furthermore, customers may also visit the website IPO section to submit applications for IPO.

Capital requirements before transaction

Customers must have enough capital in the securities trading account to trade RMB funds.

Stock dividend

Dividends of RMB listed securities may be distributed with other currency as well as RMB. There may be some currency conversion restriction to some stocks, therefore, payment may settle in other currencies.

RMB funds withdrawal

The deposit and withdrawal method with Hong Kong funds is similar. Please refer to the website "withdrawal and deposit method" section. RMB funds must be deposited in designated bank accounts:  

Risks of exchange rates fluctuation

The fluctuation of RMBagainst HK dollars and other foreign currency value will be affected by China and international political issues or economic condition change with a variety of other factors. When the value of the RMB against the dollar falls, the Hong Kong dollar assets will depreciate.      

It is the same with all other investments; it is a must to clearly understand the nature, characteristics, risks and if the product meets investment needs before trading. Investment of RMB products are vulnerable to exchange rate fluctuations, resulting in the relative risk of loss or profit may also be large in variation; therefore, customers must carefully consider such risks. If you have any doubt, it is best to consult a broker or professional investment advisers.

Details of trading and settlement mentioned above, the monetary authorities from time to time amended or published protocol / guideline / memorandum shall prevail ultimately. If customers still have further queries about RMB securities and Exchange, please contact our Customer Service Department.