FAQ
Miscellaneous Q and A
  1. What software is required for using CPY Online Securities Trade service?
    CPY Online Securities Service only support Microsoft Internet Explorer 7.0 (IE 7.0) or version above and client must install the Java for the service.
  2. Do clients need to pay attention if using mobile phones and tablet PCs to login CPY trading system?
    Core Pacific-Yamaichi online securities trading services only supports the browser INTERNET EXPLORER 7.0 (IE7.0) or later and the customer must install Java. Therefore, we recommend client to use our mobile app to login your account.
  3. Is there any minimum trading amount requirements for CPY online securities trading service?
    As long as you have enough cash or shares balance in your CPY security account, CPY would not have any trading amount limit on your buy and sell orders. Only the minimum number of shares trading should be in accordance with the share market requirements. CPY only levy 0.25% on the amount of each trading as commission fee. The minimum commission fee of each trading is HK$ 100. Other fees as stamp duty and transaction levy will be charged according to the regulations.
  4. What is the advantage of using CPY online securities trading?
    CPY online securities trading service enable you to catch the investing opportunities any time anywhere, without limit of time and geography. Even you are in other districts, you can carry out securities trading, inquire market trend, share price, and trading records, as long as you have a computer which could satisfy the system requirements.
  5. Is there any charge for CPY online securities trading service?
    For detail, please refer to service charges.
  6. What kinds of order type provided in CPY online securities trading?
    Enhanced Limit Order (Default)
    This order type allows matching in up to 2 price queues, where the price of the trade generated is at or better than the limit price. Unfilled orders after matching will be converted to limit orders at the input limit price.

    Limit Order
    This order type allows matching at the specified price queue.

    Special Limit Order
    This order type is effectively a market order with a limit price. However, there is no restriction on the limit price to be entered with respect to the best price on the other side of the market. A Special Limit Order can match up to two price queues (the best price queue and the next queue at one spread way) as long as the traded price is not worse than the limit price. Unfilled orders will be rejected and will not be queued in market order book.

    At Auction Order
    This is a market order which can only be inputted for single price auction during the pre-open session. There is no need to specify the limit price and it will enjoy a higher auction matching priority. Unfilled at-auction orders will be cancelled after auction matching. The order input period for At-Auction orders is 9:00a.m. - 9:20 a.m. At-Auction orders input out of the pre-opening session will be rejected.

    At Auction Limit Order
    It is a limit order with a specified price for single price auction during pre-open session . Unfilled at-auction limit orders, with input price not deviating 9 times or more from the prevailing nominal price, will be converted to limit orders at the input limit price and carried forward to the continuous trading session.
    The order input period for At-Auction Limit orders is 9:00 a.m. - 9:15 a.m. At-Auction Limit orders input out of the pre-opening session will be rejected.

    The information is provided by HKex.
    * Please note that for “Limit Order”, “Enhanced Limit Order” and “Special Limit Order” which placed during Pre-marking session will be regarded as “At Auction Limit Order”. Those unfilled orders will be converted to “Limit Order” and trade during the normal trading hour. Unfilled “Special Limit Order” after matching will not be cancelled. It will also be converted to “Limit Order” at the input limit price.
  7. What should be noted when investing in foreign stocks?
    Estate duty and withholding tax that might arise from investing in overseas products. You should seek advice from your professional advisors as to your particular tax position. Core Pacific-Yamaichi did/does not provide any kind of tax claim service and beneficiary owner have to apply by themselves.


If clients have any enquiries with above questions, please call Customer Services Hotline : (852) 2166 3888
If clients need to make a complaint, please call Complaint Hotline : (852) 2826 0748
eIPO Services Q and A
  1. How can CPY clients apply for IPO?
    CPY clients can apply IPO via “CPY eIPO Services” at our CPY Internet Trading System or contact Account Executive.
  2. What are the risks for applying IPO?
    When applying for IPO, investors should apply based on personal needs, understand the market situations, business nature of the company and all related risks. Details should refer to the Prospectus, offering memorandum, marketing materials, and the annual report of the company. If necessary, should seek professional advice.
  3. My account at CPY does not have any cash balance, can I make the application first and transfer the IPO related application monies on the application deadline day.?
    Yes. Although the cash balance is insufficient for your eIPO application, cash application will be subject to CPY approval, please check your latest subscription status at “Subscription Status”.
  4. Will I receive any confirmation after making an eIPO application?
    CPY will send an email confirmation after we accepted your application. Besides, you can also check your latest subscription status at “Subscription Status”.
  5. When will I need to transfer the IPO related application monies?
    For eIPO application, if the cash balance is not enough to settle your application, the application will be subject to approval from the CPY nternet Trading System. Upon approval, the IPO related application monies will be withheld and will be deducted from client’s account on the application deadline day for eIPO application.
  6. How do I know whether my eIPO application is successful or not?
    Your CPY Account Executive will contact you directly for the share allotment results. CPY will also send out Consolidated Daily Statement which will show the quantity of allotted shares and the refund amount, if applicable.
  7. In the event of an unsuccessful application, when will the IPO related application monies be credited back to my account?
    Refunds (depending on the share allotment results) will be credited into client’s account upon our receipt the same from the Share Registrar.
  8. How will clients be affected if the IPO delayed or cancelled the listing schedule?
    The listing schedule of IPO may be suspended, delayed or cancelled. If it happens after the application deadline day, for approved applications, clients will be responsible for the Administration Fee and all applicable interest charges (for margin subscriptions). Refunds will be arranged according to the Issuers’ announcement.
  9. Can I amend or cancel my eIPO application instruction through “CPY eIPO Services”?
    No, once your application have been accepted and confirmed, no amendment or cancellation will be allowed through “CPY eIPO Services”.
  10. Can I submit more than one application for the same IPO?
    No, multiple applications or suspected multiple applications will be rejected.
  11. I have both individual account and joint account in CPY. Can I use both accounts to apply for the same IPO?
    No, applying by individual account and joint account for the same IPO will be regarded as multiple applications, which will be rejected.
  12. Will margin application increase the chance of share allotment when the IPO is over oversubscribed?
    The stock market changes dramatically, can go up and down. IPO will have oversubscribed or under-subscribed situations. If investor aims to increase the chance of share allotment and apply for more than necessary, he/she may be allotted with all the shares applied. Investor will need to face market risks and will be responsible for all relevant fees and charges.
    Clients should make appropriate investment decisions based on personal needs and understand the relevant risks of the IPO.
  13. Why there is an error message said that margin application is not available when I tried to applied via “CPY eIPO Services”?
    Client may not have submitted the “Initial Public Offering Loan Agreement” to CPY. Please contact your Account Executive to obtain a copy.
  14. Why there is an error message when I tried to apply for ibond / listed bonds via “CPY eIPO Services”?
    Client may not have submitted the “Product Suitability Assessment Form” to CPY. Please contact your Account Executive to obtain a copy.
  15. What are the handling fees and charges for applying eIPO via “CPY eIPO Services”?
    For cash application, the Administration Fee is HK$50, plus Transaction Levy, Trading Fee and Brokerage Fee. For margin application, there will be additional interest charges. Clients should understand the relevant terms and conditions, or contact Account executive for details.
  16. I already have a trading account in CPY, but without online trading facilities. What should I do if I would like to apply IPO via the CPY Internet Trading System?
    Please contact your Account Executive for opening an eTrade Account or Enter here.
  17. What is the operating hours of the “CPY eIPO Services”?
    “CPY eIPO Services” is available 24 hours a day, 7 days a week. However, clients should be aware of the application deadline day of the respective IPO. In general, for margin application, the application deadline at CPY will be set at 12:00pm on the day preceding the IPO application deadline day (while quantity lasts). Whereas for cash application, the application deadline at CPY will be set at 9:00am on the IPO application deadline day. Clients should be aware of CPY’s announcements of the respective IPO application schedule.
Futures Q and A
  1. What is Index futures?
    In finance, a futures contract (more colloquially, futures) is a standardized contract between two parties to buy or sell a specified asset of standardized quantity and quality for a price agreed upon today (the futures price) with delivery and payment occurring at a specified future date, the delivery date, making it a type of derivative instrument. The contracts are negotiated at a futures exchange, which acts as an intermediary between the two parties. The party agreeing to buy the underlying asset in the future, the "buyer" of the contract, is said to be "long", and the party agreeing to sell the asset in the future, the "seller" of the contract, is said to be "short".
  2. What is Margin (Initial Margin)?
    An initial margin is the amount of a margin account as a percentage of the investment purchased on margin.
  3. When is trading hours for Hong Kong Hang Seng Index Futures market?
    According to the Hong Kong Stock Exchange regulations, trading hours of the Hang Seng Index in Hong Kong futures market as follows:
    Trading Session Trading Hours Trading Hours on / Last Trading Day
    (Spot Month Contract)
    Pre Market
    (Opening Period)
    Morning Session 9:15 a.m. - 12:00 noon 9:15 a.m. - 12:00 noon 8:45 a.m. - 9:15 a.m.
    Afternoon Session 1:00 p.m. - 4:30 p.m. 1:00 p.m. - 4:00 p.m. 12:30 p.m. - 1:00 p.m.
    AHFT Session 5:15 p.m. - 03:00 a.m. Not applicable Not applicable
    Click here for other local index trading hours (http://www.hkex.com.hk/eng/prod/drprod/hkifo/tradcalend_3.htm)
  4. What is the settlement procedure for future in last trading date?
    The HKEx will automatically exercise all contracts with the Official Settlement Price. Client can use cash for settlement all contracts. The last trading date is two working days before month end.
  5. If I buy a HSI index in markets, I did not sell the contract at last trading day and how to calculate my profit and loss?
    The contract value is equal to the index points multiplied by HK$50 per points (Hang Seng Index future). On the Expiry Day the HKEx uses an average of index prices taken at five minute intervals over the trading day to determine the Official Settlement Price of the index. The final settlement price can be viewed on the HKex website..
  6. How do I apply a future account in Core Pacific-Yamaichi?
    You can come to our head office to open an account, or call the customer service hotline 2166-3888 for enquire of any account opening matters.
  7. How many futures products can be traded at Core Pacific-Yamaichi?
    There are over than 50 future products available for trading in Core Pacific-Yamaichi include Global Futures, Hang Seng Index Futures, Mini-Hang Seng Index Futures and H-shares Index futures and etc ... For more information, please click here:
    Local Futures (http://www.cpy.com.hk/us/local_futures.htm),
    Global Futures (http://www.cpy.com.hk/us/global_futures.htm)。
  8. What is settlement procedure for HSI?
    The settlement price is HKD $50 per point for Large Hang Seng Index future and HKD $10 per point for Mini Hang Seng Index future. After the settlement day, client can withdraw cash from account.
  9. Core Pacific-Yamaichi Futures Trading Commission and other charges for how much?
    The commissions and fees for trading future,
    Please click here (http://www.cpy.com.hk/us/service_charges.htm)
  10. How can I place an order?
    Customers can make an order through online platform or contact their Account Executive to place an order.
  11. What futures products can be traded at Core Pacific-Yamaichi?
    Core Pacific-Yamaichi is providing the Hong Kong Hang Seng Index futures (large & Mini), Hang Seng Index options, stock futures, gold futures and foreign currency futures and other commodity more details, please contact with the your account executive.
  12. I have opened Core Pacific-Yamaichi futures account, how to deposit money into my futures account?
    The following is Core Pacific-Yamaichi future account for customer deposits:

    Account Name: Core Pacific-Yamaichi Futures (HK) Ltd.
    HSBC Bank Account: 511-002016-002
  13. How to withdraw money from my account?
    Customers can contact your Account Executive to handle.
  14. Why I will receive a call for “Call Margin”?
    All open futures contracts will be calculated profit and loss, as customers Initial Margin deposits have been lower than Maintenance Margin level. Margin calls occur when your account value depresses to lower than Maintenance Margin level. For more details, you can contact your Account Executive.
  15. What is current Futures Initial Margin?
    Futures Initial Margin table,
    Local Futures (http://www.cpy.com.hk/us/local_futures.htm)。
    Global Futures (http://www.cpy.com.hk/us/global_futures.htm)
  16. How do I get notification after placing order?
    When the Core Pacific-Yamaichi receipt of your order instructions, the order should display in SP trader’s Account Info > Order. The order box should display product name, price, order number and status for the indication.
  17. When I can receive confirmation?
    Whenever trade execution, you will receive Core Pacific-Yamaichi mail or e-mail to you for confirmation in next working day.
  18. When will the trades executed during After-Hours Futures Trading session (T+1) be shown in the daily statement?
    The trades executed during After-Hours Futures Trading session (T+1), i.e. from 5:15pm - 3:00am, will be presented on the daily statement of the following trading day.
  19. Does Core Pacific Yamaichi offer futures Physical Delivery?
    Within the category of trading products available at Core Pacific - Yamaichi Futures (H.K.) Limited, cash settlement are available for some and physical delivery applies to others. However, as we do not offer "Physical Delivery" arrangements at the moment, please close out or roll over your positions on or before the Close out deadline in order to avoid the risk of physical delivery.
    Please click here for points to note about "Prevention of physical delivery".
  20. Is there any fee for global futures real time quote?
    Except Chicago Mercantile Exchange (CME) and Intercontinental Exchange (ICE), other global futures exchanges’ real time quote is temporary fee. Please access below link
    http://www.cpy.com.hk/us/quote.htm to get CME and ICE real time quote fee table and application form.

    To review the futures products under CME and ICE, please access below website
    CME http://www.cmegroup.com/
    ICE https://www.theice.com/index
  21. 21. Can clients trade Chicago Mercantile Exchange (CME) and Intercontinental Exchange (ICE) futures if they have not subscribed real time quote service?
    Yes. Delayed quote (delay at least 15 minutes) service will still be available for clients who have not subscribed for real time quote service, also clients can trade relevant futures products. Clients should not rely on delay quote for trading. When clients place order, real time price may go higher/lower than the delay quote, delay quote is not reliable. Clients should be aware relevant risk when using delay quote service.
  22. For inquiries regarding trading, please contact our nighttime trading hotline at (852) 2826 0066
Security Tips
  1. What protection I can get when using Core Pacific Yamaichi “Online Securities Trading”service?
    Core Pacific-Yamaichi understand the importance of online security. Core Pacific-Yamaichi "Online Securities Trading Services" service uses existing financial industry security technology to prevent unauthorized person to steal your information, ensure that you get the full confidentiality. Using the most advanced 128 bit security socket layer (SSL) encryption technology to protect your financial information from theft.
  2. Core Pacific Yamaichi “Online Securities Trading” will being illegally invaded easily?
    Each Core Pacific-Yamaichi 'online securities trading" services clients use their personal account number and password to do identification, to protect your assets.

    To reduce the possibility of illegal intrusion, the system records the number of errors you sign in, and when found incorrect password is entered three times in a row, we will immediately terminate your online services to reduce illegal invasion opportunities.
    Customers can contact our Customer Service Centre (Tel: 2166-3888) to restart of your online trading account.
  3. How should I set a password in order to improve account security?
    Yamaichi has provided the latest technology to protect customers online account security, but without the active participation of customers, with the most perfect system is in vain, because the customer's password is like the keys, so you should keep your password absolutely confidential.

    Correct online trading attitude:

      i. To avoid using easily guessed password combination
      Avoid using easily guessed password combination, such as name, date of birth, or telephone number.

      ii. Do not reveal or write down your online trading password to anyone.
      Core Pacific-Yamaichi trading password issued by the system is sent directly to your e-mail, in order to ensure the confidentiality of your password. You should be the only one who knows the password, do not disclose to anyone. Core Pacific Yamaichi staff will not enquire your password.

      iii. Recommend to change your password from time to time.
      To change your password in Core Pacific Yamaichi "Online Securities Trading Services" in "Account Management" => "Change Password".

  4. How to protect your computer against hacking
    Most computer security threat come from Internet, your computer and the software may be threatened by viruses and hackers, so please pay attention to the following points:

    Install personal firewalls
    Install personal firewall software can prevent hacking your computer. When installing such software, firewall software should be in accordance with the manufacturer's recommendations, use a more restrictive setting to control access.

    Install and regularly update virus detection software
    Computer viruses emerging rapidly, you can choose the right anti-virus software measured strengthen computer security.

    Software company will issues upgrading version of the program, please download the latest version regularly to ensure you have the most advanced protection features.

    It should also regularly update anti-virus software, in order to improve the effectiveness of anti-virus software measured. Avoid opening the stranger sent along with e-mail attachments.
  5. The method of keeping personal passwords
    Here are some service issues should pay attention to the use of the electronic trading platform, you should read the following carefully before using the service::

      1. When it is the first time to use the electronic trading system, you must change the password; and to destroy the letter containing the password and e-mail;

      2. Do not use identity card number, telephone number, date of birth, driver's license number or any commonly used combination of numbers (such as 987654 or 123456) as the new password;

      3. At any time, you must keep account number and all passwords secret, do not share your password with others, especially not to send this information by E-mail and do not choose the same set of passwords when using other services (such as the Internet or enter a series of other URL);

      4. Never put password and account number of the electronic trading platform services together;

      5. Remember your passwords, do not note it down;

      6. Before inputting the password, you must pay attention to the surrounding environment, do not let a third party know your password;

      7. In any case, do not share your password with anyone who claims our company staff or authorized representative of us (our employees do not know the customer's password);

      8. On completion of the operation, should be immediately log out the electronic trading platform and clear the cache within the browser (cache);

      9. Do not leave the computer in the use of the electronic trading system;

      10. Do not use the electronic trading platform services through the public computer;

      11. To enhance PC security, install the appropriate firewall and anti-virus software;

      12. In order to protect the interests of customers, please change your password regularly;

      13. When found or suspected the electronic trading account number and password unauthorized use by others, please notify the us immediately, in order to assist in the investigation.

Stock option Q and A
  1. What is a stock option?
    A stock option is a financial contract based on a single underlying stock which is traded on SEHK and cleared through the SEHK Options Clearing House Limited (SEOCH).
    A call option buyer has the right to buy the underlying stock at the strike price (ie pre-determined price) on or before the expiry date, while a call option seller has the obligation to sell the underlying stock at the strike price upon exercise on or before the expiry day.
    A put option buyer has the right to sell the underlying stock at the strike price (ie pre-determined price) on or before the expiry day, while a put option seller has the obligation to buy the underlying stock at the strike price upon exercise on or before the expiry day.
  2. What is option premium?
    The option premium is the cost of an option, or the price it is traded at. The price of stock options traded on SEHK is quoted on a per share basis. It is the seller who receives the option premium. http://www.hkex.com.hk/chi/prod/drprod/so/Stk_Opt_c.htm
  3. What are the trading hours and any auction session for stock options?
    The trading hours of the morning session is 9:30 a.m. - 12:00 noon and the afternoon session is 1:00 p.m. - 4:30 p.m.
    Note: Closing time of Stock Options for half-day trading will be 12:00 noon.
    Also there is no auction session for stock options.
  4. How are stock options exercised and settled?
    Stock options traded on SEHK are American style. Option writers therefore need to be prepared for assignment at any time, including on the same day the option is written. An option position which is exercised or assigned will require the parties to deliver or pay for the underlying stock within the required stock settlement period (the second business day after exercise).
    At HKEx, the exercise of stock options results in the physical delivery of stock in contrast to other types of options exercise, which result in cash settlement.
    In some situations, most stock option positions may either be closed out before expiry or expire unexercised. At other times, exercising an option may be a sensible course for option holders. Option holders and writers therefore need to be sure they are familiar with the process.
    A stock option holder must instruct his or her broker to exercise the option if he or she wants it exercised. The brokerage firm has a deadline to meet every day after which SEOCH will not accept exercise instructions so the broker is likely to impose an earlier deadline on clients. Although SEOCH has a facility whereby certain deep in-the money options are automatically exercised upon expiry, brokers are able to over-ride this feature.
    It is therefore important for investors to inform their brokers if they wish to exercise. When an option is exercised, SEOCH selects, or assigns, on a random basis, the short open position against which it is exercised. If the accounts of an Exchange Participant’s clients are assigned, the Exchange Participant must in turn assign, on a random basis, a short open position of the client. The designated client is then required to deliver (in the case of a call option writer) or buy the underlying stock (in the case of a put option writer). Stock transactions resulting from the exercise of options are cleared under the Continuous Net Settlement System of Hong Kong Securities Clearing Company Limited, or HKSCC, a wholly-owned subsidiary of HKEx. This arrangement not only smoothens the settlement process, but also strengthens cross-market risk management by combining all the stock settlement positions resulting from the exercise of options and transactions from the stock market into the same portfolio for risk management purposes.
  5. Would I lose my profits if I’ve forgotten to close out or exercise my in-the-money option position upon expiration?
    Not necessarily. Currently, open options contracts that are 1.5% or more in-the-money upon expiration will be automatically exercised if there are no prior overriding instructions from the broker. Investors are therefore advised to understand properly the Options Trading Exchange Participants policy and procedures on exercise of options contracts to ensure that their positions are properly handled.
  6. How can I open stock option account?
    You can go to our head office at Wan Chai and branches to open the stock option account or contact our customer service hotline at 21663888.
  7. What is the commission and service charge of stock option?
    Existing commission and service charge of stock option: Please click the link: (http://www.cpy.com.hk/hk/futures_charge.htm)
  8. How can I place an order?
    Client can place the order at any place though your designated Account executive and online platform (SP trader) to capture the investment opportunities.
  9. How can I deposit money into my stock option account?
    Client should deposit money to the bank account of Core Pacific Yamachi Securities (HK) Ltd:
    Account name:Core Pacific-Yamaichi International (H.K.) Ltd.
    HSBC bank account no: 808-623102-001
  10. How can I withdraw the money from my account?
    Client should contact your designated account executive for the fund withdrawal.
  11. How do I get notification after placing order?
    When the Core Pacific-Yamaichi receipt of your order instructions, the order should display in SP trader’s Account Info > Order. The order box should display product name, price, order number and status for the indication.
  12. When I can receive confirmation?
    Whenever trade execution, you will receive Core Pacific-Yamaichi mail or e-mail to you for confirmation in next working day.
Stock Borrowing and Lending Q and A
The following answers are for your reference only. For details, please contact your designated account executive or our Customer Service Department.
  1. How can I borrow and short sell stocks if I don't have any CPY account or only have a CPY futures account?
    You will have to open both a stock borrowing and lending account and a securities account for the function of stock borrowing and short selling.
  2. How can I borrow and short sell stocks if I already have a CPY account (be it a Cash or a Margin account)?
    If you would like to borrow and short sell stocks, you will have toopen a stock borrowing and lending account (SBL) in Core Pacific -Yamaichi International (H.K.) Ltd (“CPYI”). The following is the procedure for account opening:
    (1) Contact your designated Account Executive and sign 4 copies of Stock Borrowing and Lending Agreement;
    (2) 42 copies of the Agreement will be used for registration with the Inland Revenue Department, 1 will be given back to client, 1 will be kept by CPY)
    (3) You will have to register with the Inland Revenue Department within 14 days of your first short sell. A fee at HK$270 will be charged by the Inland Revenue Department as the first time registration fee. We offer to register on your behalf without additional charge.
    (4) You will have to complete the Stock Borrowing and Lending Agreement Registration Form issued by the Stamp Office of Inland Revenue Department in duplicate for registration;
    (5) You will have to to sign two other standing authorities, one being an authorisation to deal with client money;; another being an authorisation to deal with client securities. *Remark: Clients participating in borrowing and short selling of stocks need to submit a Return of Stock Borrowing Transactions to the Stamp Office of Inland Revenue Department once every 6 months for reporting purpose. Should you have any questions, please contact Brokerage Support at (852) 2826 0737 for inquiries.
  3. What kind of stocks are available for short selling?
    Generally blue-chip stocks and those prescribed in the "Prepaid Margin Ratio List" are available for short selling. Details please refer to HKEx website "Designated Securities Eligible for Short Selling". If you want to short sell stocks, please contact your Account Executive or our Customer Service Hotline for inquiries at (852) 2166-3888.
  4. Any reporting is required for short selling?
    Regarding to Securities and Futures (Short Position Reporting) Rules, a person has a reportable short position in any specified shares if the person has a net short position value in the specific shares that is equal to or more than:

      a) HK$30 million; and

      b) 0.02% of the value of the total number of the specified shares issued
      (Whichever lower)

    In such case, the person is required to notify the Securities and Futures Commission on such reportable short position within specified time frame. For details please refer to Securities and Futures (Short Position Reporting) Rules.
    The list of specified shares may be amended from time to time without prior notice. You are advised to check the latest version of list of specified shares published by the Securities and Futures Commission on its website.
  5. What is the limitation on stock borrowing? If I have insufficient cash balance, can I borrow by pledging my stocks or bonds?
    (1) The limitation of Stock borrowing is calculated by the market value of borrowed stock at a minimum of HK$ 10 million. For the purpose of pre-paying margin, , your securities account must have sufficient cash balances at 20-45% of the market value of borrowed stock before borrowing. Settlement Department of CPYI will transfer part of the cash from the securities account to the SBL accounts.
    (2) Your securities account should maintain a balance of at least 105% of market value of the borrowed stock as cash collateral (stock market value will be determined when borrowing stocks).
    (3) Prepaid margin and cash collateral could not besubstituted by collateral of stocks or bonds.
    (4) If you borrow stocks for short selling on T+0, you will only have to deposit cash equivalent of 5% of the borrowed stock on T+2. Settlement department of CPYI will transfer the cash collateral and related charges from securities account to SBL account on T + 2 l " in order to meet the requirement. At the same time, Settlement will transfer the stock from SBL account to securities account to facilitate customer short position.
  6. How to calculate the charges for stock borrowing /short selling and buying back?
    (1) Charges for Stock Borrowing and Lending:
    -Ticket Charge:HK$500
    -Loan Rate: Annual Interest Rate: L% (L is variable, depending on interest rates and supply & demand of stock borrowing, the interest will be calculated by T + 2 onwards. )
    (2) Charges of Stock short selling and buying back:Same with the commission of stock trading.
  7. When will stocks be deposited to my securities account if I borrow today? Can I short sell immediately?
    In general, the stock is settled by T+2. You can short sell the borrowed stock on the same day (T + 0) when the transaction of borrowing stock is confirmed.
  8. If Iborrow, short sell and buy back the borrowed stock on the same day, do I need to provide cash collateral and pay all relevant charges according to loan rate of borrowed stock on T+2?
    You do not have to provide cash collateral on T + 2 if you buy back the borrowed stock on the same day for short selling. However, youwill have to deposit cash equivalent to 5% or 10 % of the market value of the borrowed stock as cash collateral by T+2.
    Please note:You have to pay the interest for 1 day even if you buy back the stock on the same day (T+0).
  9. Do I have to deposit cash as collateral if I buy back the stock on T+1? When can I withdraw the prepaid margin after buying back the stock?
    You will have to deposit the cash as collateral on T+2 if you buy back the stock on T+1. You can withdraw the prepaid margin if you buy back the stock on T+3 after deducting the relevant charges. CPYI will thereafter release your cash collateral.
  10. What is the consequence if I fail to deposit cash as collateral?
    CPYI reserves the right to buy back the borrowed stock on T+3 on your behalf if you fail to deposit cash as collateral. You must bear all relevant costs and account for all losses incurred in this regard.
  11. Do I need to increase the margin deposited if the stock price rises after borrowing the stock?
    If the stock price rises, you will have to deposit more cash after borrowing the stock in the following circumstances. The fund must be settled (good fund).
    Margin ratio = (Prepaid Margin + Cash Collateral) / Margin ratio for market value of related stock ≦ (50% of prepaid margin ratio + ratio of cash collateral)
    For example:
    Prepaid margin ratio: 20% and Ratio of Cash collateral: 105%
    Required to be deposited margin: 115% ≦【20% ÷ 2 + 105%】
    The market value of the stock is HKD$100,000,Total margin is HKD$125,000 【HKD$100,000 * 125%】 if the market price rise to $110,000
    Margin Ratio = 114% 【HKD$125,000 / HKD$110,000】<115%
    Required to b deposited margin:HKD$12,500【(125% * HKD$110,000)-HKD$125,000】
  12. What is the consequence if I don’t increase the margin deposited in response to the rise in stock price?
    As the total amount of prepaid margin and cash collateral will rise, our Risk Management Department would have no choice but to buy back part or all of the borrowed stock on your behalf. When you receive a notice from us requiring your deposit of additional margin, you are reminded to do to so as soon as possible.
    Furthermore,CPYI may notify and require you to buy back the borrowed stock at any time. You will have to fulfill your obligation under our Stock Borrowing and Lending Agreement to buy back the borrowed stock when we so require.
  13. What do I have to bear in mind when short selling?
    You have to confirm that the stock has been successfully borrowed before short selling the same. Moreover, only limit order is available when short selling.
  14. Do I have to notify CPYI when I buy back the borrowed stock?
    Yes. You must notify your Account executive of your intention to buy back the borrowed stock on or before 11 am. Otherwise, the notice will be deemed effective on the next day. Generally you will have to return the borrowed stock within T+2 after giving such notification.
  15. What do I have to bear in mind when buying back the borrowed stock?
    When buying back, you will have to manifest the intention of buying back the borrowed stockk. Otherwise, your buy order will be treated as a normal buy instruction.
  16. Can I specify the date of buying back stocks? When requested by CPYI to buy back stocks, can I delay in or decline to return the borrowed stock?
    No. You may not specify the date of buying backing the borrowed stocks. You will have to buy back the stock as per the instructions of CPYI. If CPYI notify you to buy back the borrowed stock before 12:30 pm, you will have to do so on the same day of such notification. If CPYI notify you after 12:30 pm, you will have to return the stock on or before the day after such notification is given. The settlement date of the stock is generally T+2 after the after the effective date of notification.
Frequency Q and A
  1. What is nature of Exchange Traded Derivative Products?
    * Derivative Warrant
    Derivative warrants are an instrument which gives investors the right - but not the obligation - to buy or sell the underlying asset (e.g. a stock) at a pre-set price on or before a specified date. Derivative warrants are generally divided into two types: calls and puts. Derivative warrants can be linked with a single stock, a basket of stocks, an index, a currency, a commodity or a futures contract. Derivative warrants are usually settled in cash when they are exercised at expiry. Holder of call warrants have the right, but not obligation, to purchase from the issuer a given amount of the underlying asset at a predetermined price (also known as the “Exercise Price”) within a certain time period. Conversely, holders of put warrant have the right, but not obligation, to sell to the issuer a given amount of the underlying asset at a predetermined price within a certain time period. Investor should be aware that other factors being equal the value of derivative warrant will decrease over time. Derivative warrants should never be viewed as products that are brought and held as long term investments.

    * Callable Bull/Bear Contracts
    Callable Bull/Bear Contracts (“CBBC”) are a type of derivative product that tracks the performance of an underlying asset without requiring investors to pay the full price required to own the actual asset. They are issued either as Bull or Bear contracts with a fixed expiry date, allowing investors to take bullish or bearish positions on the underlying asset. CBBC are issued with the condition that during their lifespan they will be called by the issuers when the price of the underlying asset reaches a level (known as the “Call Price”) specified in the listing document. If the Call Price is reached before expiry, the CBBC will expire early and the trading of that CBBC will be terminated immediately. Once the CBBC is called, even though the underlying asset may bounce back in the right direction, the CBBC which has been called will not be revived and investors will not be able to profit from the bounce-back.

    * Exchange Traded Funds
    Exchange Traded Funds (“ETFs”) are passively-managed and open-ended funds, which are traded on the securities market of Hong Kong Exchanges and Clearing Limited (HKEx). All listed ETFs are authorised by the Securities and Futures Commission (SFC) as collective investment schemes. Most ETFs track a portfolio of assets to provide diversified exposure to selected market themes. However, ETFs may also track a single underlying asset.
    ETFs can be broadly grouped into Physical ETFs and Synthetic ETFs. Many of Physical ETFs directly buy all the assets needed to replicate the composition and weighting of their benchmark (e.g. constituents of a stock index). However, some only buy a portion of the assets needed to replicate the benchmark or assets which have a high degree of correlation with the underlying benchmark but are not part of it. Some physical ETFs with underlying equity-based indices may also invest partially in futures and options contracts. Lending the shares they own is another strategy used by some physical ETFs. On the other hand, Synthetic ETFs do not buy the assets in their benchmark. Instead, they typically invest in financial derivative instruments to replicate the benchmark’s performance. Synthetic ETFs are subject to counterparty risk associated with the derivatives issuers and may suffer losses if the derivatives issuers default or fail to honour their contractual commitments. Investors should read the ETF prospectus carefully to ensure they understand how the fund operates.

    * Inline Warrants
    Inline Warrants are a type of structured product that entitles the investors to receive a pre-determined fixed payment at expiry. At expiry, investors will receive HK$1 per inline warrant held when the underlying asset falls at or within the Upper and Lower Strikes (In-The-Range) or HK$0.25 per inline warrant held when the underlying asset falls outside the Upper and Lower Strikes (Out-of-The-Range).
  2. What are the risks associated with derivative products that need to be concerned by Investors?
    Some Risks Associated with Derivative Products
    Issuer default risk
    In the event that a derivative product issuer becomes insolvent and defaults on their listed securities, investors will be considered as unsecured creditors and will have no preferential claims to any assets held by the issuer. Investors should therefore pay close attention to the financial strength and credit worthiness of derivative product issuers.

    Uncollateralised product risk
    Uncollateralised derivative products are not asset backed. In the event of issuer bankruptcy, investors can lose their entire investment. Investors should read the listing documents to determine if a product is uncollateralised.

    Gearing risk
    Derivative products such as derivative warrants and callable bull/bear contracts (CBBCs) are leveraged and can change in value rapidly according to the gearing ratio relative to the underlying assets. Investors should be aware that the value of a derivative product may fall to zero resulting in a total loss of the initial investment.

    Expiry considerations
    Derivative products have an expiry date after which the issue may become worthless. Investors should be aware of the expiry time horizon and choose a product with an appropriate lifespan for their trading strategy.

    Extraordinary price movements
    The price of a derivative product may not match its theoretical price due to outside influences such as market supply and demand factors. As a result, actual traded prices can be higher or lower than the theoretical price.

    Foreign exchange risk
    Investors trading derivative products with underlying assets not denominated in Hong Kong dollars are also exposed to exchange rate risk. Currency rate fluctuations can adversely affect the underlying asset value, also affecting the derivative product price.

    Liquidity risk
    The Exchange requires all derivative product issuers to appoint a liquidity provider for each individual issue. The role of liquidity providers is to provide two way quotes to facilitate trading of their products. In the event that a liquidity provider defaults or ceases to fulfill its role, investors may not be able to buy or sell the product until a new liquidity provider has been assigned.

    Market risk
    Derivative Products may also be exposed to the economic, political, currency, legal and other risks of a specific sector or market related to the single stock, basket of stocks, index, currency, commodity or futures contract that it is tracking.

    Some Additional Risks Involved in Trading Derivative Warrants
    Time decay risk
    All things being equal, the value of a derivative warrant will decay over time as it approaches its expiry date. Derivative warrants should therefore not be viewed as long term investments.

    Volatility risk
    Prices of derivative warrants can increase or decrease in line with the implied volatility of underlying asset price. Investors should be aware of the underlying asset volatility.

    Some Additional Risks Involved in Trading CBBCs
    Mandatory call risk
    Investors trading CBBCs should be aware of their intraday “knockout” or mandatory call feature. A CBBC will cease trading when the underlying asset value equals the mandatory call price/level as stated in the listing documents. Investors will only be entitled to the residual value of the terminated CBBC as calculated by the product issuer in accordance with the listing documents. Investors should also note that the residual value can be zero.

    Funding costs
    The issue price of a CBBC includes funding costs. Funding costs are gradually reduced over time as the CBBC moves towards expiry. The longer the duration of the CBBC, the higher the total funding costs. In the event that a CBBC is called, investors will lose the funding costs for the entire lifespan of the CBBC. The formula for calculating the funding costs are stated in the listing documents.

    Some Additional Risks Involved in Trading ETFs
    Tracking errors
    Tracking errors refer to the disparity in performance between an ETF and its underlying index/assets. Tracking errors can arise due to factors such as the impact of transaction fees and expenses incurred to the ETF, changes in composition of the underlying index/assets, and the ETF manager’s replication strategy.

    Trading at discount or premium
    An ETF may be traded at a discount or premium to its Net Asset Value (NAV). This price discrepancy is caused by supply and demand factors, and may be particularly likely to emerge during periods of high market volatility and uncertainty. This phenomenon may also be observed for ETFs tracking specific markets or sectors that are subject to direct investment restrictions.

    Counterparty risk involved in ETFs with different replication strategies
    (a) Full replication and representative sampling strategies
    An ETF using a full replication strategy generally aims to invest in all constituent stocks/assets in the same weightings as its benchmark. ETFs adopting a representative sampling strategy will invest in some, but not all of the relevant constituent stocks/assets. For ETFs that invest directly in the underlying assets rather than through synthetic instruments issued by third parties, counterparty risk tends to be less of concern.
    Synthetic replication strategies
    ETFs utilising a synthetic replication strategy use swaps or other derivative instruments to gain exposure to a benchmark. Currently, synthetic replication ETFs can be further categorized into two forms:
    i.Swap-based ETFs
    Total return swaps allow ETF managers to replicate the benchmark performance of ETFs.without purchasing the underlying assets. Swap-based ETFs are exposed to counterparty risk of the swap dealers and may suffer losses if such dealers default or fail to honor their contractual commitments.
    ii. Derivative embedded ETFs
    ETF managers may also use other derivative instruments to synthetically replicate the economic benefit of the relevant benchmark. The derivative instruments may be issued by one or multiple issuers. Derivative embedded ETFs are subject to counterparty risk of the derivative instruments’ issuers and may suffer losses if such issuers default or fail to honour their contractual commitments.

    Even where collateral is obtained by an ETF, it is subject to the collateral provider fulfilling its obligations. There is a further risk that when the right against the collateral is exercised, the market value of the collateral could be substantially less than the amount secured resulting in significant loss to the ETF.
  3. Should I buy inline warrant at a price higher than HKD 1.00?
    Inline Warrants are a type of structured product that entitles the investors to receive a pre-determined fixed payment at expiry. At expiry, investors will receive HK$1 per inline warrant held when the underlying asset falls at or within the Upper and Lower Strikes (In-The-Range) or HK$0.25 per inline warrant held when the underlying asset falls outside the Upper and Lower Strikes (Out-of-The-Range).

    Due to the pre-determined fixed maximum payment at expiry of HK$1, an inline warrant should not be traded above HK$1. Investors will suffer a loss by buying an inline warrant above HK$1.

    Inline Warrants may be issued with a lifespan of six months to five years. They may be bought and sold prior to their expiry on the cash market of HKEX. At expiry, settlement is made in cash only.

    For detail information of Inline Warrant, please refer to HKEx website at:https://www.hkex.com.hk/Products/Securities/Inline-Warrants?sc_lang=en

交易寶 Q and A (Chinese only)
  1. 甚麼是「京華山一交易寶」?
    「京華山一交易寶」是由京華山一國際(香港)有限公司(簡稱「京華山一」)推出的流動證券投資及資訊應用程式。該應用程式向客戶提供香港證券、滬港通、深港通等買賣及資訊服務,讓客戶隨時隨地得到最新的市場資訊,進一步掌握股市走勢。
  2. 怎樣申請「京華山一交易寶」?
    客戶可免費下載京華山一交易寶。現有電子證券客戶只需輸入電子交易戶口名稱及密碼後即可登入。如欲申請電子證券帳戶,請填妥及遞交電子交易戶口開戶申請表格,表格載於京華山一網頁: www.cpy.com.hk「下載中心」一欄。
  3. 怎樣下載「京華山一交易寶」?
    「京華山一交易寶」現可於 Apple App Store (iOS)、Google Play (Android)及其他安卓巿場(TBC)下載。下載方法: 搜尋「京華山一交易寶」,下載及安裝應用程式至您的流動電話 / 流動裝置,客戶安裝應用程式後,輸入有關電子交易戶口名稱及密碼後即可登入。
  4. 怎樣登入「京華山一交易寶」?
    請先安裝「京華山一交易寶」應用程式至您的流動電話 / 流動裝置內。點擊「京華山一交易寶」 的圖標,即可開啟有關系統。輸入您的電子交易帳號及登入密碼後即可登入手機交易平台。
  5. 我是否可以同時登入「京華山一交易寶」及「京華山一網上交易系統」?
    您可以同時登入於「京華山一交易寶」系統 及 「京華山一網上交易系統」。
  6. 怎樣透過「京華山一交易寶」申請港股即時報價及市場資料?
    只要您已申購「京華山一交易寶」的「串流港股資訊」服務,您便可以享有港股即時報價及市場資料服務。請即到www.cpy.com.hk「下載中心」下載「港股即時報價申請表」,填妥後請電郵表格至info@cpy.com.hk或傳真至 2918-0409 京華山一客戶服務部即可。
  7. 如果使用這項服務,需要選用京華山一指定的電訊運營商嗎?
    不需要。通過任何電訊運營商或任何設有WiFi的地方即可使用「京華山一交易寶」。 「京華山一交易寶」服務未包括一般交易收費及個人數據傳輸等費用。請聯絡您的電訊運營商以瞭解流動數據使用的徵費及收費模式。
  8. 我是否在任何時間都可以使用「京華山一交易寶」?
    是。除京華山一進行常規維護的期間除外,您可以24小時使用「京華山一交易寶」。
  9. 當網絡服務不穩定時,如何可以得知最新交易狀況?
    客戶於使用「京華山一交易寶」時需留意當網絡服務不穩定時,客戶有機會未能掌握最新交易狀況。屆時客戶可留意京華山一發出的成交確認訊息/推送通知訊息以掌握最新交易狀況或致電閣下經紀查詢。
  10. 甚麼是 「推送通知」服務?
    「京華山一交易寶」提供「推送通知」服務,客戶啟動此功能後,可收到如「交易訂單狀況更新」等通知訊息。此功能現只適用於香港境內使用。
  11. 為甚麼iOS系統的操作介面與Android系統版本的操作介面不同?
    由於iOS系統與Android系統是兩個不同的操作系統, 為配合用戶於不同系統的使用慣性, 程式於不同系統操作上可能會有細微差別, 但整體功能大致上都是一樣的。
Bond Q and A
  1. How to trade Bonds at CPY?
    Clients need to ensure the availability of cash balance in their CPYI account before trading. The settlement date of Bond is generally 3 days after trading, i.e. T+3.
  2. What is the minimum amount for investment?
    The minimum amount for trading bond is generally US$100,000. The amount might varies depending on the type of bond.
  3. How much is the transaction fees?
    Service charge: Transaction Fee is based on the purchase price (bid) and the selling price (offer) in market. No commission will be charged.
    Custodian Service fee: The Custodian Service Fee of European currency bonds can be as low as 0.015% pa (fees calculated based on month-end nominal value)(Only for Euroclear)
    Fee for Collection of coupon: Free
    Redemption Fee: Free
    (The above fees are subject to change without notice. Please consults our account executive.)
  4. How will CPY handle coupons?
    CPY will collect coupons on the clients’ behalf and credit them to clients’ accounts.
  5. How will CPY handle bonds at maturity?
    If you hold the bond until maturity, all interests and the principal will be credited back to your account.
  6. Can I sell the bond before maturity? Is there any secondary market for trading bonds?
    Bonds can be traded before maturity generally but it depends on the liquidity and the price of the bond. Since the bond only can trade according to demand and supply through over-the-counter market, Core Pacific-Yamaichi does not guarantee the liquidity of bonds in the secondary market. Investors should consider your investment decision carefully.
  7. What is the common currency for trading at Bond market?
    Bonds can be traded at Hong Kong dollar, Australian dollar, Euro or any other currency, depending on the type of bond. Core Pacific-Yamaichi can provide a one-stop currency exchange services to our clients.
  8. Will I receive a statement of account after bond trading?
    Bond trading is conducted through securities accounts and the settlement date of each transaction will be shown on the daily or monthly statement of the account. You can opt forreceiving statements by e-mail. Back to Top.
SPTrader Pro HD Q and A
  1. What is futures trading mobile app SPTrader Pro HD?
    Futures trading mobile app SPTrader Pro HD is a mobile futures trading platform, which allows you to trade futures via mobile app at wherever your are. You can access latest futures market data anytime (except maintenance).
  2. How to apply and login futures trading mobile app SPTrader Pro HD?
    Existing futures clients can download SPTrader Pro HD for free and login with your SPTrader (PC version) user name and password.
  3. How to download futures trading mobile app SPTrader Pro HD?
    Please use mobile devices to search “SPTrader Pro HD” at Google Play to download.
  4. Which mobile device model can run SPTrade Pro smoothly?
    SPTrader Pro HD only supports some of the mobile devices and tablets, the app developer Sharppoint does not guarantee the app can be compatible with all mobile devices and tablet.
  5. Can I login SPTrader (PC version) and SPTrader Pro HD at the same time?
    No. You have to logout SPTrader (PC version) first, then you can login SPTrader Pro HD, vice versa.
  6. Which products can I trade via SPTrader Pro HD?
    SPTrader Pro HD supports products trading in SPTrader (Futures) (PC version), including HK futures (includes T+1 session), HK stock futures and global futures.
  7. How to apply futures real time quote in SPTrader Pro HD?
    Futures real time quote in SPTrader Pro HD is free of charge (except for CME group and ICE market data which is subject to subscription fee).
    You can access if you have valid futures account and login successfully.
  8. Is there any charge for using SPTrader Pro HD?
    SPTrader Pro HD is free of charge, but clients still have to pay for transaction fees and mobile data transmission fee includes:
    1) Futures trading
    Commission costs for electronic trading services as well as all transaction levy to be collected by HKEx will be incurred
    2) Data transmission
    Mobile service provider may charge for data transmission such as GPRS, 3/4Gor WiFi services, please contact your mobile service provider for details.
  9. How I can get the updated transaction and market condition when connection is unstable?
    When you are using SPTrader Pro HD, you should pay attention when the connection is unstable and you may not be able to access updated transaction status and/or market condition. Please make sure your device is in good connection status. If you have any doubt about transaction or market data, please contact your designated Account Executive.
  10. Is it safe to trade futures via mobile device?
    For system safety, our system’s data is encrypted. We recommend you to lock device if you are not using it. Besides, since touch screen device is sensitive, to avoid error, please input carefully and verify the information.
  11. When there is system-prompt showing SPTrader Pro HD has an updated version, do I have to update?
    SPTrade Pro may be upgraded from time to time for function enhancement or bug fix, we recommend that customers should update to the latest version as soon as possible in order to enjoy the latest, most stable and highest quality of service.
  12. If I encounter problems during the upgrade, what can I do?
    You can try again when the connection is more stable, or uninstall and reinstall the program.
「Shanghai-Hong Kong Stock Connect」 Q and A
  1. What is Shanghai-Hong Kong Stock Connect trading ?
    Shanghai-Hong Kong Stock Connect is a securities trading and clearing links program developed by Hong Kong Exchanges and Clearing Limited (“HKEx”), Shanghai Stock Exchange (“SSE”) and China Securities Depository and Clearing Corporation Limited (“ChinaClear”), aiming to achieve a breakthrough in mutual market access between Mainland China and Hong Kong.
    Through Shanghai-Hong Kong Stock Connect, Hong Kong and foreign investors can trade SSE Securities (“Northbound Trading”) while Mainland investors can trade certain SEHK securities (“Southbound Trading”).
  2. How to trade Shanghai A share though CPY Online trading platform ?
    Client can trade Shanghai A share though our Online trading platform or simply call your account executive.
    Client who opened a valid securities account can trade Shanghai A share.
    CPY Online Trading platform:

      a. Login your securities account at www.cpetrade.com

      b. Choose A share at the section of securities trading

      c. Input the order information and click the “stock search” to find the stock name for the order

      d. Click the icon “Submit” to send the order to market

  3. What should I pay attention for trading at Shanghai-Hong Kong Connect ?
    Including:

      Only Limit orders are accepted.

      Only Cash account is allowed to trade A Shares, Margin account is unable to trade A Shares.

      Order is only valid at same day. All non executed order will be cancelled after market close.

      There is no day trade for A share market.

      Change order is not accepted for Shanghai A share. You have to cancel it and replace a new order.

  4. Is there any regulation for cancellation of trade ?
    HKEx will open the function for order entry at SEHK before 5 minutes of the morning and afternoon session but the order will be sent to market at market open (9:15am, 9:30am and 1pm).
    Therefore, new order or cancel order will be accumulated and wait at the system.
    For example, client want to cancel the order at 12:55 to 13:00, the cancel order will not be sent to market until market open as the regulation of SEHK.
    Client need to pay attention that the order may not be cancelled when the order have already executed when market open.
  5. What is the settlement cycle of trading Shanghai –Hong Kong Connect ?
    The settlement cycle follows the regulation of A share market.

      Securities settlement: T

      Money settlement: T+1

  6. Are we protected by the Investor Compensation Fund ?
    Investor should be noted that the current Investor Compensation Fund will not cover any Northbound activities.
  7. Any Disclosure obligation for trading at Shanghai A share market ?
    There are the boundaries of the disclosure of the A-share interests in Hong Kong the same as the 5% with Mainland and it need to be disclosed within 3 days. According to the mainland regulations, investors cannot trade the underlying stock within the date of disclosure and two days after disclosure, i.e. investors may not trade the underlying stock at the longest of 5 days.
  8. Any Market risk for trading at Shanghai A share market ?
    Shanghai-Hong Kong Stock Connect will only operate on days when both markets are open for trading and banking services are available in both markets on the corresponding settlement days. So it is possible that there are occasions when it is a normal trading day for the Mainland market but Hong Kong investors cannot carry out any A-share trading. Investors should take note of the days Shanghai-Hong Kong Stock Connect is open for business and decide according to their own risk tolerance capability whether or not to take on the risk of price fluctuations in A-shares during the time when Shanghai-Hong Kong Stock Connect is not trading.
  9. How would SSE Securities under Shanghai-Hong Kong Stock Connect be customized for Hong Kong and overseas investors ?
    Can investors hold SSE Securities acquired through Shanghai-Hong Kong Stock Connection physical form ?

    Since SSE Securities are issued in scripless form, physical deposits and withdrawals of SSE Securities into/from the CCASS Depository will not be available. As explained above, Hong Kong and overseas investors can only hold SSE Securities through their brokers/custodians. Their ownership of such is reflected in their brokers/custodians' own records such as client statements.
  10. Any limitation for Odd Lots trading of Shanghai-Hong Kong Connect ?
    All SSE Securities are subject to the same trading board lot size, which is 100 shares (buy orders must be in board lot). Odd lot trading is only available for sell orders and all odd lots should be sold in one single order. It is common that a board lot buy order may be matched with different odd lot sell orders, resulting in odd lot trades. It should be noted that unlike Hong Kong, board lot and odd lot orders are both matched on the same platform on SSE, and subject to the same share price. The maximum order size is 1 million shares and the tick size is uniformly set at RMB 0.01.
  11. Can I engage in short selling of A shares though Core Pacific Yamaichi ?
    No. Short selling service of A shares is not currently provided. Clients should confirm that sell orders placed are long sales and not short sales. Clients also need to ensure the sufficiency of shares before placing sell orders.
  12. If my SSE shares has entered into a “Delisting Preparatory Period”, what will be the risk ?
    The “Delisting Preparatory Period” will usually has 30 trading days. During that period, investor who wishes to sell the shares through stock connect, it may only be able to do so on or before the end of the “Delisting Preparatory Period”. The shares are eligible for sell only during the period. Upon completion of “Delisting Preparatory Period”, HKSCC may cease to provide any services related to the shares, transfer and physical withdrawal of the shares will not be available. Investor should be aware of the risk related and other limitations. For details, please kindly contact HKSCC for enquiry.
  13. Where can I obtain more information about Shanghai-Hong Kong Stock connect ?
    You can refer to HKEx website:

    Trading Information:

    http://www.hkex.com.hk/Mutual-Market/Stock-Connect?sc_lang=en

    Information Book for Investors:

    http://www.hkex.com.hk/eng/market/sec_tradinfra/chinaconnect/Documents/Investor_Book_En.pdf

「Shenzhen-Hong Kong Stock Connect」 Q and A
  1. What is Shenzhen-Hong Kong Stock Connect trading ?
    Shenzhen-Hong Kong Stock Connect, which will provide mutual stock market access between Hong Kong and Shenzhen via a northbound trading link and a southbound trading link.
  2. How to trade Shenzhen Stock Exchange Securities though CPY Online trading platform ?
    Client can trade Shenzhen Stock Exchange Securities though PC download version, mobile app, web online and simply call your account executive.
    Client who opened a valid securities account can trade Shenzhen Stock Exchange Securities.
    CPY Online Trading platform:

      a. Login your securities account at www.cpetrade.com

      b. Choose A share at the section of securities trading

      c. Input the order information and click the “stock search” to find the stock name for the order

      d. Click the icon “Submit” to send the order to market

  3. What should I pay attention for trading at Shenzhen-Hong Kong Connect ?
    Including:

      Only Limit orders are accepted.

      Only Cash account is allowed to trade A Shares, Margin account is unable to trade A Shares.

      Order is only valid at same day. All non-executed order will be cancelled after market close.

      There is no day trade for A share market.

      Change order is not accepted for Shenzhen Stock Exchange Securities. You have to cancel it and replace a new order.

  4. Is there any regulation for cancellation of order ?
    HKEx will open the function for order entry at Shenzhen Stock Exchange before 5 minutes of the morning and afternoon session but the order will be sent to market at market open (9:15am, 9:30am and 1pm).
    Therefore, new order or cancel order will be in queued and pending at the system.
    For example, client want to cancel the order at 12:55 to 13:00, the cancel order will not be sent to market until market open as the regulation of Shenzhen Stock Exchange.
    Client need to pay attention that the order may not be cancelled when the order might have already executed when market open.
  5. What is the settlement cycle of trading Shenzhen –Hong Kong Connect ?
    The settlement cycle follows the regulation of Shenzhen Stock Exchange Securities market.

      Securities settlement: T

      Money settlement: T+1

  6. Are we protected by the Investor Compensation Fund ?
    Investor should be reminded that the current Investor Compensation Fund will not cover any Northbound and Southbound trading activities.
  7. Any Disclosure obligation for trading at Shenzhen Stock Exchange Securities market ?
    Clients must comply, with the 5% shareholding disclosure requirement applicable to persons who invest in A shares under applicable laws of Mainland China. China Connect Exchange Participants shall put appropriate monitoring arrangements in place to comply with this Rule and to alert their clients to comply with the relevant disclosure requirements.
  8. Any Market risk for trading at Shenzhen Stock Exchange Securities market ?
    Shenzhen-Hong Kong Stock Connect will only operate on days when both markets are open for trading and banking services are available in both markets on the corresponding settlement days. So it is possible that there are occasions when it is a normal trading day for the Mainland market but Hong Kong investors cannot carry out any Shenzhen Stock Exchange Securities trading. Investors should take note of the days Shenzhen-Hong Kong Stock Connect is open for business and decide according to their own risk tolerance capability whether or not to take on the risk of price fluctuations in A-shares during the time when Shenzhen-Hong Kong Stock Connect is not trading.
  9. How would Shenzhen Stock Exchange Securities under Shenzhen-Hong Kong Stock Connect be customized for Hong Kong and overseas investors ?
    Can investors hold Shenzhen Stock Exchange Securities acquired through Shenzhen-Hong Kong Stock Connection physical form ?

    Since Shenzhen Stock Exchange Securities are issued in scripless form, physical deposits and withdrawals into/from the CCASS Depository of SZSE will not be available. As explained above, Hong Kong and overseas investors can only hold Shenzhen Stock Exchange Securities through their brokers/custodians. Their ownership of such is reflected in their brokers/custodians' own records such as client statements.
  10. Any limitation for Odd Lots trading of Shenzhen Stock Exchange Securities ?
    All Shenzhen Stock Exchange Securities are subject to the same trading board lot size, which is 100 shares (buy orders must be in board lot). Odd lot trading is only available for sell orders and all odd lots should be sold in one single order. It is common that a board lot buy order may be matched with different odd lot sell orders, resulting in odd lot trades. It should be noted that unlike Hong Kong, board lot and odd lot orders are both matched on the same platform on Shenzhen Stock Exchange, and subject to the same share price. The maximum order size is 1 million shares and the tick size is uniformly set at RMB 0.01.
  11. Can I engage in short selling of A shares though Core Pacific Yamaichi ?
    No. Short selling service of A shares is not currently provided. Clients should confirm that sell orders placed are long sales and not short sales. Clients also need to ensure the sufficiency of shares before placing sell orders.
  12. If my SZSE shares has entered into a “Delisting Preparatory Period”, what will be the risk ?
    The “Delisting Preparatory Period” will usually has 30 trading days. During that period, investor who wishes to sell the shares through stock connect, it may only be able to do so on or before the end of the “Delisting Preparatory Period”. The shares are eligible for sell only during the period. Upon completion of “Delisting Preparatory Period”, HKSCC may cease to provide any services related to the shares, transfer and physical withdrawal of the shares will not be available. Investor should be aware of the risk related and other limitations. For details, please kindly contact HKSCC for enquiry.
  13. Where can I obtain more information about Shenzhen-Hong Kong Stock connect ?
    You can refer to HKEx website:

    Trading Information:

    http://www.hkex.com.hk/Mutual-Market/Stock-Connect?sc_lang=en

    Information Book for Investors:

    http://www.hkex.com.hk/eng/market/sec_tradinfra/chinaconnect/Documents/Investor_Book_En.pdf

LME Futures Q and A
  1. What products do LME (London Metal Exchange) provide?
    LME provides aluminum, copper, lead, zinc, nickel and tin futures contracts trading. The most active contracts are three month products, e.g 3 month Copper, 3 month aluminum, etc.
    Only the latest (3M) futures contracts introduced by LME with the prompt date after 3 months are available at our Futures trading platform. Other LME contracts periods are not supported by our Futures trading platform.
  2. How can I trade LME futures products?
    Clients can trade LME futures products viaCPY SPTrader (PCversion) and SPTrader Pro (Mobiles App).
  3. What is the trading hours and contract specification of LME futures products?
    Trading hour and contract specification can click here
  4. What is the difference between LME futures products and other global futures products?
    LME product is in the form of forward contracts, different from normal futures products which have only 1 prompt date each month. For LME products, each trade day can be prompt date (delivery date).
    Different trade date contracts have different prompt dates, e.g Buy 1 lot Three month Copper at 1st May, the prompt date is 1st August. Sell 1 lot Three month Copper contracts at 7th May, the prompt date is 7th August. Since the prompt dates are different, different trade date contracts (long/short position) cannot be squared off.
  5. How to close out LME futures products?
    In order to close out positions, Carry Trade should be done to square off long/short position with different prompt dates.

    Client bought 1 lot of LME 3M Copper futures contracts at $8,100 on 7 May with prompt day 7 Aug. It is 9 May today and Client squares off the position as following
    • First, Client sells 1 lot of LME 3M Copper futures contracts with prompt day 9 Aug. The trade is done at price $8,200.
    • Client then calls our Night Trading Hotline on the same trade day for a Carry Trade with the provision of trade details and the date to execute the carry trade (i.e. to close out the long position of LME 3M Copper with prompt date 7 Aug by the short position with prompt date 9 Aug at $8,200)
    • Our night trader contacts broker at once and confirms the spread of Carry Trade is $10 Contango (Price may fluctuate according to market condition).
    • Meanwhile, the broker buys 1 lot of 3M Copper futures contracts at the same price $8,200, and sells 1 lot of Copper futures contracts with the prompt date 7 Aug at $8,190 (at $10 Contango) for Client.
    • Our night trader notifies Client of the completion of the carry trade and the trade details.
    • 1 side commission should be charged for Carry Trade.
  6. Can carry trade be done via Futures trading platform?
    No. Carry trade should call our Trader to proceed. Clients can call Night Trading Hotline: 2826 0066 to do carry trade.

    Carry Trade Trading Hour(HK Time) :
    08:00 to 01:00 (Summer Time)
    09:00 to 02:00 (Winter Time)
  7. Can Futures trading platform display carry trade position?
    Yes. All the related position(s) after Carry Trade(s) done will be displayed in futures trading platform on the next business day.
  8. Any points to note for carry trade?
    All traded LME futures contracts will still be recorded on the statement until the prompt date.
    The realized profit cannot be withdrawn until the prompt day. It can be used as margin only.
  9. What happen if carry trade has not been done?
    If a pair of long/short position is not requested to be squared off by Carry Trade, they will be treated as spread month contracts and spread margin will be hold. Spread margin shall be determined by the Company from time to time.
    Also, our company does not offer “Physical Delivery”. All unsettled positions should be closed out 3 days before prompt date (“Close out deadline”). If client cannot close out the position and complete the Carry Trade before “Close out deadline”, our company will perform compulsory close out on the day after “Close out deadline”. Client cannot make any objection on compulsory close out price. Any reverse trade done after “Close out deadline” will be treated as new position.
    Please click here for points to note about "Prevention of Physical Delivery".
CPY Amalgamation Q and A
  1. What is the purpose of amalgamation of Core Pacific-Yamaichi Securities (H.K.) Limited and Core Pacific-Yamaichi International (H.K.) Limited?
    The purpose of amalgamation is to streamline corporate structures of both companies and optimize operation/financial economics to enhance clients' service quality, operational efficiencies and client satisfaction.
  2. What is the schedule of the amalgamation?
    Ans: The amalgamation will be effective on 1 July 2016. Below is the Amalgamation Schedule:
    Item Date
    Press announcement of the amalgamation 22 April 2016
    Notification letter templates to clients regarding amalgamation (see Attachments A and B) 1 June 2016
    Effective date of amalgamation 1 July 2016
    After the amalgamation on 1 July 2016, our broker name registered with the regulators (inclusive of the HKEx and the SFC) would bear the name of “Core Pacific-Yamaichi International (H.K.) Limited”, with all bank accounts bearing the name of “Core Pacific-Yamaichi International (H.K.) Limited”.
  3. Is there any impact to client account(s) after the amalgamation?
    For CPYS client(s):
    As from 1 July 2016 and upon amalgamation, client(s)’ account(s) with our company would operate under the name of “Core Pacific-Yamaichi International (H.K.) Limited”, where usual operational practice would seamlessly follow and no actions from client(s) / inconveniences towards client(s) would be anticipated to arise. In this regard, client(s) please be assured that all matters concerning your account(s) (inclusive of your account number(s), designated account executive(s), online trading account login(s) / password(s) (where any) and etc.) would remain unchanged, save that client(s) account(s) would be operated under the name of “Core Pacific-Yamaichi International (H.K.) Limited”, where the brokerage number(s) of “Core Pacific-Yamaichi International (H.K.) Limited” would apply.

    For CPYI client(s):
    As from 1 July 2016 and upon amalgamation, your account(s) with our company would continue to operate under the name of “Core Pacific-Yamaichi Securities (H.K.) Limited”, where usual operational practice would be maintained.
  4. If I have account(s) under CPYS only, should I open a new account under CPYI after amalgamation?
    No. Your CPYS account will be operated under the name of CPYI , where usual operational practice would seamlessly follow and no actions from you / inconveniences towards you would be anticipated to arise. Your account number(s), designated account executive(s), online trading account login(s) and password(s) will remain unchanged.
  5. Will the company address, contact numbers and persons be changed?
    The company address and contact numbers will not be changed after the amalgamation. Besides, there will be no change to account executives of clients.
    Address of headquarter:11/F, China Resources Building, 26 Harbour Road, Wanchai, Hong Kong.
    Customer Services Hotline:(852) 2166 3888
    For branch address and other contact information please refer to our company website:「Customer Services → Contact Us」
  6. Will there any change of Terms and Conditions for Trading Accounts and account opening documents regarding amalgamation?
    Yes. There are changes in the "Terms and Conditions for Trading Accounts" (the "Terms") for amalgamation.
    Pursuant to Paragraph 23.5 of Section I – General Terms and Conditions of the "Terms and Conditions for Trading Accounts" (the "Terms"), we hereby give you notice of changes in the Terms which are ancillary to amalgamation and commencement of the Contracts (Rights of Third Parties) Ordinance in Hong Kong, where you need to and are advised to peruse the draft amended Terms which we have simultaneously uploaded in the 「Customer Services → Client Notice」 section of our website www.cpy.com.hk. Please note that the draft amended Terms would become effective and be engrossed and uploaded in the 「Customer Services → Download」 section of our website on 1 July 2016. We also take this opportunity to remind you of your rights under Paragraph 13 of Section I of the Terms.

    Besides, there will be revised versions of account opening related forms after the effective of amalgamation on 1 July 2016. For details, please kindly contact your account executive or call our Customer Services Hotline at (852) 2166 3888.
  7. Will there any impact to the products and services provided by the company?
    No. CPYI will continues the quality products and services as we are always providing by CPYS and CPYI.
  8. Will there any impact for fund deposit after amalgamation?
    Commencing from 1 July 2016, you should, where necessary, deposit monies into bank account(s) of “Core Pacific-Yamaichi International (H.K.) Limited”, which details are set out in our website 「Customer Services → Deposit & Withdrawal Method」, or make your cheques payable to “Core Pacific-Yamaichi International (H.K.) Ltd” to avoid any rejection(s). Please do not deposit your fund to bank account(s) of “Core Pacific-Yamaichi Securities (H.K.) Ltd” from 1 July 2016.
  9. Will there any impact for fund withdrawal after amalgamation?
    No, there will be no impact to fund withdrawal arrangement. Please email/fax the filled “Client Cash Instruction” form or call your account executives/Customer Services Hotline (852) 2166 3888 as usual practice. For details, please visit our company website 「Customer Services → Deposit & Withdrawal Method」
  10. Will there any change of commission and charges because of amalgamation?
    No, there will be no change of commission and charges due to amalgamation.
  11. Will the exchange broker number(s) be changed due to amalgamation?
    No, the exchange broker numbers will remain unchanged but the exchange participant name will be changed from “Core Pacific-Yamaichi Securities (H.K.) Limited” to “Core Pacific-Yamaichi International (H.K.) Limited”.
  12. Is the amalgamation accepted and supported by regulators?
    Yes, we got the due support from regulators and counter-parties for the amalgamation.
  13. How can clients check the validation of the amalgamation?
    Clients can check the records about amalgamation from Companies Registry of Hong Kong.
  14. Should clients have any enquiry or need any assistance and/or support to access our websites, what should they do?
    Clients are advised to contact our Customer Service Hotline at (852) 2166 3888 for any enquiry and assistance.
Security Tips Q and A
  1. What protection I can get when using Core Pacific - Yamaichi “Online Trading” service?
    Core Pacific-Yamaichi understand the importance of online security. Core Pacific-Yamaichi “Online Trading” service uses existing financial industry security technology to prevent unauthorized person to steal your information, ensure that you get the full confidentiality. Using the most advanced 128 bit security socket layer (SSL) encryption technology to protect your financial information from theft.
  2. Core Pacific - Yamaichi “Online Trading” service will being illegally invaded easily?
    Each Core Pacific-Yamaichi “Online Trading” services clients use their personal account number and password to do identification, to protect their assets.

    To reduce the possibility of illegal intrusion, the system records the number of errors you sign in, and when found incorrect password is entered three times in a row, we will immediately terminate your online services to reduce illegal invasion opportunities.
    Customers can contact our Customer Service Centre (Tel: (852) 2166-3888) to reset of your “Online Trading” account.
  3. How should I set a password in order to improve account security?
    Core Pacific - Yamaichi has provided the latest technology to protect customers online account security, but without the active participation of customers, with the most perfect system is in vain, because the customer's password is like the keys, so you should keep your password absolutely confidential.

    Correct online trading attitude:

      i. To avoid using easily guessed password combination.
      Avoid using easily guessed password combination, such as date of birth, or telephone number.

      ii. Do not reveal or write down your online trading password to anyone.
      Core Pacific-Yamaichi trading password issued by the system is sent directly to your e-mail, in order to ensure the confidentiality of your password. You should be the only one who knows the password, do not disclose to anyone. Core Pacific - Yamaichi staff will not enquire your password.

      iii. Recommend changing your password from time to time.
      To change your Core Pacific - Yamaichi "Online Trading" password through computer or mobile apps in any time.

  4. How to protect your computer/mobile device against hacking?
    Most security threat come from Internet, your computer/mobile device and the software may be threatened by viruses and hackers, so please pay attention to the following points:

    Install personal firewalls
    Install personal firewall software can prevent hacking your computer. When installing such software, firewall software should be in accordance with the manufacturer's recommendations, use a more restrictive setting to control access.

    Install and regularly update virus detection software
    Computer/mobile device viruses emerging rapidly, install the right anti-virus software improve your computer/mobile device security.

    Software company will release upgrading version of the program, please download the latest version regularly to ensure you have the most advanced protection features.

    It should also regularly update anti-virus software, in order to improve the effectiveness of anti-virus software. Avoid to open e-mail attachments that sent by strangers.
  5. The method of keeping personal passwords
    Here are some issues should pay attention to the use of “Online Trading” platform, you should read the following carefully before using the service:

      i. In the first time, login “Online Trading” services, you must change the password; and delete the password e-mail accordingly;

      ii. Do not use identity card number, telephone number, date of birth, driver's license number or any commonly used combination of numbers (such as 987654 or 123456) as the new password;

      iii. Do not share your password with others any times, you must keep account number and passwords secret, especially not to send this information by E-mail and do not choose the same set of passwords when using other services (such as the Internet service or enter a series of other URL);

      iv. Never put “Online Trading” password and account number together;

      v. Remember your passwords, do not note it down;

      vi. Before inputting the password, you must pay attention to the surrounding environment, do not let others know your password;

      vii. Do not share your password with anyone who claims our company staff or authorized representative of us (our employees no need to know the customer's password);

      viii. Log out “Online Trading” platform, when you completed your operation and clear the cache within the browser;

      ix. Do not leave your computer / mobile device, during login the “Online Trading” platform;

      x. Do not use public computer / mobile device to login “Online Trading” services;

      xi. To enhance PC security, install the appropriate firewall and anti-virus software;

      xii. Change your password regularly;

      xiii. Found or suspected the online trading account number and password use by others, please notify us immediately for investigation.

  6. What should I do when deposit funds or securitie?
    Clients are reminded not to pass funds or securities to any third party (including Account Executive) for funds or securities deposit on your behalf. Clients may refer to our company website for details of funds deposit methods and addresses of our Headquarters and Branches that offer securities deposit services.
    Funds deposit methods: 「Customer Services → Deposit & Withdrawal Method」
    Headquarter & Branch addresses: 「Customer Services → Branch Network」
  7. Should I review my Account Statement regularly?
    Where there is any account activity, Core Pacific - Yamaichi will send a statement to clients informing them of any change in their accounts, including funds and securities deposit and withdrawal and transaction details, etc. Clients are advised to regularly read statement to review the latest account position. If there is any discrepancy or should there be any enquiry, please feel free to contact Customer Service Department.
  8. Should I update my personal particulars immediately when there is change?
    Yes. In case of any change in personal particulars, clients may download the relevant form from our website and directly submit the completed form to Customer Service Department. Clients should update their personal particulars to ensure all client details registered with us are the most up-to-date.
  9. What is Security tips for online trading and how to enhance the online security?
    You can now easily use your computer or mobile phone to buy or sell investments like stocks anywhere through the online platforms offered by us. While trading online is convenient, you should be mindful of the associated security threats and risks. Your own practices of using online trading services indeed play a significant role to help protect yourself as well.
  10. Good practices of trading online
    Dos Don'ts

      Keep a close eye on all trade documents to monitor your online account. Log on your online account regularly, or when you receive e-statement alert from your broker, to review all transactions promptly.
      Beware of any suspicious or unauthorised transactions.

      Change it regularly and avoid recycling the same password.

      Watch out for any unauthorised changes to your account information such as telephone number, email address and login password.

      Beware of any unusual login screen or process (e.g. a suspicious pop-up window or request for providing additional personal information) and whether anyone is trying to peek at your password.

      Type the website address (URL) or use a bookmark to enter the website of your broker. Avoid access the website through hyperlink embedded in e-mail, internet search engine and suspicious pop-up window.

      Use trusted and secured computer or mobile device for online trading. Always log out website or system after finishing your trade.

      To protect your computer or mobile device, activate the auto-lock function; install reputable anti-virus, anti-spyware and anti-malware programmes and update them as and when they are released; set up a personal firewall.

      Use the latest versions of operating system, apps, software and browser. Keep software up-to-date.

      For the network functions, disable any wireless network functions (e.g. Wi-Fi, Bluetooth) not in use. Choose encrypted networks when using Wi-Fi and remove any unnecessary Wi-Fi connection settings.

      Always consider the data security and privacy when you download and install any software and apps into your computer and mobile device.

      Always exit using the 'Logout' button to ensure you end each Internet Trading session securely.

      Don't disclose the login ID and password of your online account to any person or respond to any unverified request. Intermediaries do not normally ask customers to disclose the account password. Check with us if in doubt.

      Don't store your password in computers, mobile phones or placed in plain sight, and don’t use a single password for all your accounts e.g. email account or banking account

      Don't log in your online account when there are unusual pop-up screen or window, or abnormal slow computer response, and when unexpected steps or information are required

      Don't use public computer, or unknown and insecure network connection to access your online account

      Don't share with other people your computer or mobile device used to access to your online account

      Don't download and install any unknown software used to access to your online account

  11. How can I get the further information of online tips?
    Please refer to the following Investor Education Centre's website at
    http://www.thechinfamily.hk/web/en/scams/scam-websites.html

    You must not use this app on any device or operating system that has been modified outside the mobile device or operating system vendor supported or warranted configurations. This includes devices that have been "jail-broken" or "rooted". A jail broken or rooted device means one that has been freed from the limitations imposed on it by your mobile system provider and the phone manufacturer without their approval. The use of this app on a jail broken or rooted device may compromise security and lead to fraudulent transactions. Download and use of this app in a jail broken or rooted device is entirely at your own risk and the Company and/or its affiliated companies will not be liable for any losses or any other consequences suffered or incurred by you as a result.

    You should only download this app and its updates from official supplying app store (e.g Google Play and App Store) and not from any unofficial sources.
Closing Auction Session (CAS) Q and A
  1. What is a Closing Auction Session (CAS)?
    A closing auction is a commonly used trading mechanism which allows trades to be executed at the closing price. During a closing auction, market participants may input buy and sell orders, with the price that most volume can be traded at forming the closing price. All orders will then be executed at that price.
  2. What securities are covered under CAS?
    The CAS will be rolled out in two phases. Phase 1 (to launch on 25 July 2016) will include all the Hang Seng Composite LargeCap and MidCap index constituent stocks, the H shares which have corresponding A shares listed on the exchanges in Mainland China and all ETFs.
    The list of CAS Securities will expand to also include constituents stocks of Hang Seng Composite SmallCap Index (“HSSI”).
    Clients can access below link to see the constituents of related indexes
    https://www.hsi.com.hk/HSI-Net/HSI-Net
  3. Does CAS cover Structure Products, Derivative Warrants, Callable Bull/Bear Contracts and debt securities?
    CAS does not cover above products.
  4. How will the trading hours change?
    For the securities markets, the market closing time will change from 16:00 to a random closing of anytime between 16:08 and 16:10 for a normal trading day. It will change from 12:00 to a random closing of anytime between 12:08 and 12:10 for a half day trading.For the derivatives market, the closing times of normal trading sessions for Stock Index Futures and Options, Currency Futures and Commodity Futures will change from 16:15 to 16:30 for a normal trading day and from 12:00 to 12:30 for a half trading day, except on the last trading day of the contracts. The opening time of After-Hours Futures Trading will change from 17:00 to 17:15.In addition, trading hours on the last trading day, the final settlement price calculation algorithm and typhoon arrangements will also change accordingly.
  5. CAS trading hour?
    CAS trading hour:
    Full Day Trading Half Day Trading Order Instruction
    Reference Price Fixing Period 16:00-16:01 12:00-12:01 No input, amendment or cancel
    Order Input Period 16:01-16:06 12:01-12:06 Allow input, amendment or cancel
    No Cancellation Period 16:06-16:08 12:06-12:08 Allow input, no amendment or cancel
    Random Closing Period 16:08-16:10 12:08-12:10 Allow input, no amendment or cancel
  6. CAS applies to half day trading?
    Yes. It will change from 12:00 to a random closing of anytime between 12:08 and 12:10 for a half day trading.
  7. What order types do CAS support?
    It supports Auction Order and Auction Limit Order.
  8. Any price restriction on order instruction input during CAS trading hour?
    Yes. Price restriction is ±5% of reference price. Orders with price outside the permissible price limit will be cancelled.
  9. What is Reference Price Fixing Period?
    In the first period (Reference Price Fixing Period), a reference price, which sets the allowable price limit of the CAS, is calculated for each CAS security. The reference price is determined by taking the median of 5 nominal prices in the last minute of the Continuous Trading Session (CTS) and the system will take 5 snapshots on the nominal prices at 15-second interval starting from 15:59:00.
  10. Does CAS allow short selling?
    Input of Short Selling in CAS is allowed.
  11. How to handle outstanding orders from Continuous Trading Session (CTS)?
    Orders outstanding at the end of the preceding CTS will be automatically carried forward to the CAS and treated as at-auction limit orders.
  12. How the orders match if no Indicative Equilibrium Price (IEP)?
    In cases where final IEP cannot be established during the CAS, the reference price will be treated as the final IEP for order matching and will become the closing price of the CAS security. Order matching is based on order type, price and then time priority.
  13. What happen if IEP cannot be determined at the end of the CAS and CAS reference price is not available?
    There will be no automatic order matching at the end of the random closing period of the CAS and all orders will be cancelled and deleted from the system automatically at the end of the trading day.
  14. Is derivatives market trading hour being affected?
    For the derivatives market, the closing times of normal trading session for Stock Index Futures/Options, Currencies Futures and Commodities Futures will be changed from 16:15 to 16:30 for a normal trading day and from 12:00 to 12:30 for a half trading day, except on the last trading day of the contracts. The opening times of After-Hours Futures Trading will be changed from 17:00 to 17:15 in order to maintain the existing 45 minutes break before the start of AHFT.

    (a) Summary of trading hours after the CAS implementation



    (b) Summary of trading hours on last trading day after the CAS implementation

Volatility Control Mechanism (VCM) Q and A
  1. What is the Volatility Control Mechanism (VCM)?
    The Volatility Control Mechanism is designed to prevent extreme price volatility from trading incidents such as a “flash crash” and algorithm errors, and to address systemic risks from the inter-connectedness of securities and derivatives markets. Many international exchanges have implemented some form of VCM. In the case of HKEX’s VCM, if the price deviates more than a predefined percentage within a specific time frame, it will trigger a cooling-off period for five minutes. This provides a window allowing market participants to reassess their strategies, if necessary. It also helps to re-establish an orderly market during volatile market situations.
  2. Which securities and futures contracts are covered by VCM?
    In the securities market, the VCM will cover Hang Seng Index (HSI) and Hang Seng China Enterprise Index (HSCEI) constituent stocks (please refer to Hang Seng Indexes Company Limited).The VCM will only be applied to the spot month and next calendar month contracts in the Hang Seng Index (HSI), Mini-Hang Seng Index (MHI), H-shares Index (HHI) and Mini H-shares Index (MCH) futures markets (total 8 contracts, collectively known as VCM Exchange Contracts”).

    Clients can access below link to see the constituents of related indexes
    https://www.hsi.com.hk/HSI-Net/HSI-Net
  3. What is the applicable period for VCM?
    VCM is applicable to continuous trading session (CTS), excluding:
    • Pre-Market Opening Period
    • The first 15 minutes of the morning and afternoon trading session.
    • The last 20 minutes* of the afternoon trading session.
    • The After-Hours Futures Trading session in the derivatives market.

    * Since a cooling off period will last for 5 minutes, the monitoring will stop 20 minutes before end of the Afternoon Session

  4. How does the VCM work?
    The VCM is applicable during Continuous Trading Session (CTS) except the first 15 minutes of the morning and afternoon CTS and the last 15 minutes of the afternoon CTS. It is applicable to just the 81 Hang Seng Index (HSI) and Hang Seng China Enterprise Index (HSCEI) constituent stocks and the eight related index futures contracts. If the market tries to trade at a price of more than 10%(Securities Market) / 5%(Derivatives Market) away from its last traded price 5 minutes ago, a 5-minute cooling-off period will be triggered. During the cooling-off period, the affected stock will be only allowed to trade within a fixed band. Normal continuous trading will resume when the 5-minute cooling off period ends and the stock cannot be subject to the VCM again in the same trading session.
  5. What is Reference Price Model?
    VCM monitoring starts at 9:45a.m for cash market, reference price should be last traded price executed 5 minutes before 9:45a.m. Such reference price will be updated by AMS/3 at the end of each one minute interval.
    The VCM Monitoring Period starts at 9:30am for the derivatives market. The first VCM Reference Price for the trading day should be the last traded price executed before 9:25am (i.e. 5 minutes before). Thereafter the VCM Reference Price will be updated by HKATS at the end of each one second interval.
  6. What happen if there is no Reference Price?
    If there is no trade execution 5 minutes before, system will further search backward for the latest last traded price as reference price. This search can go backward till market open where the auction price established during the pre-opening auction will be used as reference price.
  7. Will Reference Price from A.M. session bring forward to P.M session?
    Reference price from A.M. session will not be brought forward to P.M. session. Same mechanism will be applied after P.M. session market open except only trades executed in the P.M. session will be used as reference price
Online Withdrawal Instruction Q and A
  1. What is the service hour of Core Pacific Yamaichi e-withdrawal function?
    The online service hour is 08:00-19:59. For withdrawal instruction during 08:00 to 12:00 noon on each Working day will be processed on the same business day whereas instruction entered after 12:00 noon will be processed on the next business day
  2. Can I place withdrawal instruction after service hours?
    e-withdrawal services will be temporarily suspended from 20:00 to 08:30 of next business day, system will not accept e-withdrawal instruction during that period. Please submit e-withdrawal instruction during its service hours.
  3. Can withdrawal instruction placed via online platform be amended or cancelled?
    Only instruction with status “Pending” is allowed to be cancelled, other submitted instructions are not allowed to be amended or cancelled.
    If you have enquiry, please contact your designated Account Executive or Customer Service Hotline: (852) 2166 3888
  4. After e-withdrawal instruction is submitted, when can I receive the withdrawal fund?
    Withdrawal instruction submitted before cutoff time will be handled on the same business day, withdrawal fund will be deposited to clients’ registered withdrawal bank account in our company in the next business day
  5. What can I do if I have not registered any withdrawal bank account?
    You can access our web trading platform, “e-withdrawal” -> “register new bank account” to register new withdrawal bank account. (Bank account name should be same as securities account name.)
  6. Can I check e-withdrawal instruction history via web?
    Clients can check e-withdrawal history within the past 7 business days.
  7. What currency can be withdrawn via web e-withdrawal function?
    Withdrawal currency is limited to HKD only
  8. What are the possible statuses after e-withdrawal instruction submitted?
    Status Remarks
    Received Withdrawal instruction is in progress
    Pending Withdrawal instruction will be processed in the next business day
    Cancelled Withdrawal instruction is cancelled
    Rejected Withdrawal instruction has been rejected
    Done Withdrawal instruction has been successfully processed
  9. Can I register third party bank account for e-withdrawal?
    The registered name of New Bank Account must be the same as the client account name. Otherwise, the withdrawal instruction may be rejected. System does not accept third party withdrawal instructions.
e-Deposit Notification Q and A
  1. What is the service hour of Core Pacific Yamaichi e-Deposit notification function?
    The online service hours are 09:00-20:00. For e-Deposit notification during 09:00 to 16:30 on each working day will be processed on the same business day whereas notification entered after 16:30 will be processed on the next business day.
  2. Can I place e-Deposit notification after service hours?
    e-Deposit notification services will be temporarily suspended from 20:00 to 08:59 of next business day, system will not accept e-Deposit notification during that period. Please submit e-Deposit notification during its service hours.
  3. Can e-Deposit notification placed via online platform be amended or cancelled?
    Only recognition request with status “Pending” is allowed to be cancelled. Other submitted recognition requests are not allowed to be amended or cancelled.
    If you have enquiry, please contact your designated Account Executive or Customer Service Hotline: (852) 2166 3888
  4. After e-Deposit notification is submitted, when will receive the deposit fund?
    Valid deposit notification submitted before cutoff time will be handled on the same business day and fund will be deposited to clients' CPY account. The e-Deposit notification will be processed in the next business day if the notification is submitted after cutoff time.
  5. Can I check e-Deposit notification history via web?
    Yes. Clients can check e-Deposit notification history within the past 90 calendar days.
  6. What currency can be deposited via web e-Deposit notification function?
    e-Deposit notification services are limited to HKD, USD and CNY only.
  7. What are the possible statuses after e-Deposit recognition submitted?
    Status Remarks
    Pending The deposit recognition is pending to be processed.
    Cancelled The deposit recognition request has been cancelled by client.
    Rejected The deposit recognition request has been rejected.
    Completed The deposit instruction is completed.
  8. Can I submit e-Deposit notification to transfer fund from third party bank account to my CPY account?
    e-Deposit notification services is limited to fund transfer from client's Hong Kong banks accounts to client’s CPY account only. The registered name of bank account must be the same as the CPY client account name. Otherwise, the deposit may be rejected. No third party deposit notification shall be entertained.
eCheque deposit Q and A
  1. How can I send the eCheque to CPY?
    Clients have to send the eCheque by email todeposit@cpy.com.hk with subject "echeque payment from client account no: (client's account number)".
  2. What should be noted when issuing eCheque?
    You must :

    a. Fill in the eCheque payable name as below :
    • For Securities account: Core Pacific-Yamaichi International (H.K.) Limited
    • For Futures account: Core Pacific - Yamaichi Futures (H.K.) Limited

    b. Put the account name and account number in the remark of eCheque as sample.
    eCheque Sample
  3. What is the cut-off time of eCheque deposit?
    The cut-off time of eCheque deposit is 4:00pm on each working day. The eCheque will be processed on the same business day before cut-off time whereas instruction entered after cut-off time will be processed on the next business day.
  4. Can I deposit the eCheque without remark of the CPY account name and account number?
    If you cannot provide the remark of account name and account number on the eCheque, the eCheque will not be credited to your CPY account.
  5. Can I deposit the eCheque from third party bank account?
    No. The name of Bank Account that issued the eCheque must be the same as the CPY client account name. Otherwise, the deposit will be rejected.
  6. When the deposit amount can be shown in the account if I submit the eCheque with correct format and remark before cut off time?
    The eCheque will be deposited to client account on deposited date (should be a working date) and will be cleared after 2 working days with successful cleared by bank. Eg. Client provides the eCheque at 3:00pm on 15 May 2017 by email todeposit@cpy.com.hk The eCheque will be deposited to client account on 15 May 2017 and successfully cleared on 17 May 2017 if no bounced cheque is confirmed by bank.
CRS related Q and A
  1. What is the CRS?
    On 22 June 2016, the legislative council has passed and CRS will be effective in Hong Kong on 1 January 2017. The Common Reporting Standard (CRS) is an information-gathering and reporting requirement for financial institutions in participating countries, to help fight against tax evasion and protect the integrity of tax systems.
  2. According to the requirement of CRS, what client information that CPY has to collect and report?
    Under the CRS, tax authorities require financial institutions such as CPY to collect and report certain information relating to their customers’ tax statuses, including: 
    • Name
    • Address
    • Place of birth* (for Individual and Controlling Persons) *
    • Date of birth*(for Individual and Controlling Persons) *
    • Country(ies) of tax residence
    • Taxpayer identification number(s) *
    • Place of registration/incorporation (for Entities)
    • Entity Type (for Entities)
    • Controlling Person Type for certain Entity Types (for Controlling Persons)

    * this does not apply in all participating countries and is subject to local law requirements.

  3. Who is reportable?
    The CRS seeks to establish the tax residency of customers. Under the CRS, financial institutions are required to identify customers who appear to be tax resident outside of the country where they hold their accounts and products, and report certain information to our local tax authority, which may then be shared with the tax authority where you are tax resident.
  4. How is my tax residence defined?
    This will depend on where you live and your circumstances. Please contact a professional tax adviser or check the OECD website http://www.oecd.org/tax/automatic-exchange/crs-implementation-and-assistance/tax-residency/ for more information on how to determine your tax residency, as CPY cannot give tax advice.
  5. How will I know whether or not I am a tax resident of an overseas jurisdiction?
    In general, whether or not an individual or entity is a tax resident of a jurisdiction is determined by having regard to the person’s physical presence or stay in a place (say, whether over 183 days within a tax year) or, in the case of a company, the place of incorporation or where the central management and control of the entity lies. The fact that a person has paid taxes charged by a jurisdiction (say, value-added tax, withholding tax or capital gains tax) does not automatically render that person a tax resident of that jurisdiction.
  6. How will the adoption of CRS by CPY impact customers?
    Under CRS, FIs will be liable for reporting on Reportable Accounts. Hong Kong taxpayers who are not tax residents of any territory outside Hong Kong will not be reported. The Amendment Ordinance requires FIs to apply due diligence procedures to collect all required information and documentation from Account Holders. To identify Reportable Accounts, CPY may ask Account Holder to complete self-certification form for identification of their tax residency status.
  7. Which types of customers are affected by CRS due diligence and reporting?
    Customers that hold financial accounts in FIs will be subject to CRS required due diligence procedures. Customers being affected include individuals (whether there is any banking transactions directly or indirectly through an entity) and entities such as corporations, partnerships or trusts, etc. Customers that are identified as reportable persons, i.e. tax residents of jurisdictions that have signed AEOI agreements with Hong Kong, will be subject to CRS required reporting. Therefore, customers whose jurisdiction of tax residence is Hong Kong are not subject to CRS reporting.
  8. I live in the same country as I pay tax so why do I need to give you these details?
    Under the CRS, we are legally required to establish the tax residency status of all our customers, even if you are tax resident in the same country as where you hold your account. However, typically your details will not be reportable to tax authorities for CRS purposes.
  9. I am required to submit the self-certification form even though I live in a place other than tax residence?
    Yes, Under the CRS, CPY is required to apply due diligence procedures to collect all the required information and documentation from all account holders. To identify reportable persons, we may ask you to complete a self-certification form for verification of your tax residence status.
  10. What kind of information will be collected?
    The information reported to tax authorities will have been provided in the self-certification form, and details about the accounts and products you have with us, including: 
    • the balance or value (year-end)
    • gross amount of interests, dividends and sale proceeds of financial assets as appropriate for the year concerned
  11. Can customers object to CPY making any reporting?
    No. It will be a legal requirement for CPY to report the Account Holder's information, where applicable, in accordance with the requirements of Amendment Ordinance.
  12. How often will I need to provide this information?
    Once we have a valid self-certification on file, you will only be asked to complete another when you update certain information on your account or we believe your reportable status may have changed.
  13. I have provided you with my details. Why are you asking me for supporting documents?
    Financial Institutions are required by law to verify the details client provided as part of the self-certification. If the information provided by client is not complete/correct, client has to provide supplementary information/document to complete the CRS review. We might ask you for a copy of your passport to verify your identity or for some other evidence of your tax residency declared in your self-certification.
  14. Does the joint account holders need to fill out a form separately?
    Yes, each account holder, entity and / or its controller is required to complete the self-certification form.
  15. How to fill out the self-certification form?
    All parts of the form must be completed with client signature (unless not applicable or otherwise specified). If space provided is insufficient, please use additional sheet(s). Information in fields/parts marked with an asterisk (*) are required to be reported by the reporting financial institution to the Inland Revenue Department.
  16. Can I treat this CRS form as a Change of Account Details Form for updating my personal information? For example: telephone number, residential address etc.
    If the information of the submitted form do not match our records, we will follow up to confirm whether client needs to update the personal information.
    Note: Address proof issued within 3 months is required for updating residential / mailing address.
  17. Will CPY respect my data privacy?
    Yes. We will only disclose your information to the relevant tax authorities if we are legally required to do so.
  18. Which countries are participating in CRS?
    For a list of countries participating in the CRS, alongside the dates that they will start exchanging information, please see refer to OECD website http://www.oecd.org/tax/automatic-exchange/crs-implementation-and-assistance/crs-by-jurisdiction/.
  19. What is the difference between CRS and FATCA?
    FATCA is US Law and requires financial institutions to identify US Persons and report in line with FATCA regulations, based on citizenship. The CRS requires financial institutions to identify all tax residencies of customers and in most cases report information on customers who are tax resident outside of the country where they hold their accounts. Even if you have already provided information under the United States government’s Foreign Account Tax Compliance Act (FATCA), you may still need to provide additional information for the as there are different regulations with different requirements.
  20. Where can I find further information?
    For further information, please refer to HKSAR Inland Revenue Department website http://www.ird.gov.hk/eng/faq/dta_aeoi.htm/.
Two Factor Authentication (Securities) Q and A
  1. How to install Google Authenticator?
    Android user search "Google Authenticator" in Google Play, download and install.
    iOS users search "Google Authenticator" in App Store, download and install.
    Or scan below QR Code

    Or search and download "Google 身份驗証器" APK in 安卓巿場.
  2. Which system version supports Google Authenticator?
    Google Authenticator can run on Android device with version 2.1 or later.
    Google Authenticator can run on iPhone, iPod Touch, or iPad with latest operating system.
  3. Can I use Google Authenticator in more than 1 device?
    No. If you need to use Google Authenticator in another device, please reset One Time password setup, and please clear the old setting of Google Authenticator to avoid confusion.
  4. How to reset registered account in Google Authenticator?
    Clients can login to online trading platform and go to“a/c Management” > “Two-Factor Authentication” to reset the setup.
  5. If I lost my device (One Time Password has been setup via Google Authenticator), will my account be stolen?
    Even the One Time Password is generated by your Two Factor Authentication registered is generated device, client has to login trading platform with username and password as usual. Your account still has 1st layer protection.
    Therefore, we suggest client not to reveal or write down your online trading password to anyone. And please change your password from time to time.
    For more recommendation, please visit our company website > FAQ > Security Tips.
  6. Is there any time limit for One Time Password generated by Google Authenticator?
    Yes. Time limit of every generated One Time Password is 2 minutes. The One Time Password will be expired after 2 minutes and becomes invalid.
    The time of your mobile phone/device may be different with that of our trading platform, and result to invalid "One Time Password (OTP)". If the OTP inputted is invalid, please wait for the next one and try again. Or please set the "Date and Time" of your mobile phone/device to "Set Automatically" to synchronize with our system time.
  7. Does it need to connect internet while using Google Authenticator?
    No, , Google Authenticator still can generate One Time Password for login even without internet connection. However, internet connection is required for the first time setup of One Time Password in Google Authenticator.
  8. If I lost my device or cannot open Google Authenticator, how can I login trading platform?
    Please call our Customer Services Hotline (852) 2166 3888 for any assistance.
  9. Can I use Google Authenticator in web browser?
    Yes, but Chrome only. You can search "Google Authenticator" in Chrome Web Store. After installation, you can use Google Authenticator in Chrome in the same way as mobile device.
  10. Can other people use Google Authenticator to login my trading platform?
    No. When client setup One Time Password, a unique secret key is authenticated with installed Google Authenticator of your mobile phone/device. When client login trading platform, the Two Factor Authentication can only be done with One Time Password generated by authenticated Google Authenticator.
  11. Can I use Google Authenticator oversea or in mainland China?
    Yes. Once you have installed Google Authenticator, you can login with Two Factor Authentication anywhere.
  12. Can I cancel Two Factor Authentication function?
    No. To protect clients' interest, all clients must use Two Factor Authentication during login.
  13. Why did I get an "Invalid login, please login again" error message when I try to log in?
    Client login to TSCI (PC download version) and Mobile Trading App, please enter the entire account number (7 digits plus "-" 4 digits), such as 0012345-1008.
Two Factor Authentication (Futures and Stock Options) Q and A
  1. How to register the two-factor authentication?
    Clients are required to register the two-factor authentication when login to SPTrader Futures / Stock Options trading system (including PC version and mobile app). Our company will send a “One Time Password” to client registered email address and mobile phone number. After client receive “One Time Password” and enter into system, login success and can start trading.
  2. Do I need to use two-factor authentication to login every time?
    Client registered two-factor authentication is valid for 360 days, during valid days, it is not required to input “One Time Password” if client use registered device to login. After 360 days, client should register your device again.
  3. How many devices can I register for two-factor authentication?
    Maximum of 5 different devices (including PCs, mobile phone and tablets) can be registered to login for each account.
  4. How can I change my registered device?
    Client can login trading system, open Device Security Management menu, you can remove a specific registered device and then register a new device.
  5. Except for the two-factor authentication (2FA), are there any additional authentication methods?
    You may also apply additional authentication methods to enhance two-factor authentication (2FA), for examples, Android fingerprint authentication and/ or iOS Touch ID etc. (Please note that NOT all device supports fingerprint authentication)
Grey Market Q and A

Service Charges Minimum / Maximum
Grey Market Commission 0.3% on transaction amount
(rounded to the nearest cent)
Minimum HK$150.00 /RMB 150
  1.  What is Grey Market?
    Grey Market means trading IPO stock over the counter on one trading day before listing.
  2.  What time can trade in Grey Market?
    Client can trade in Grey Market in our company online trading platform one trading day before listing Grey market trading hour: 16:15-18:30, we accept grey market order from 16:15, grey market order before 16:15 will be rejected.
  3.  Are all trading platforms support Grey Market trading?
    Grey market trading supports online trading platform only, PC version and mobile version are not supported.
  4.  What kind of order types are supported in Grey market trading?
    Only limit order is accepted, amend order is not supported, client can cancel order and place a new order.
    Conditional order is not supported.
    Orders are valid on the same day only. All outstanding orders will be cancelled after market close.
  5.  If particular securities fails to list on exchange, what will happen with the trade done on Grey Market?
    Trades executed on our electronic over-the-counter trading facility may be cancelled and void if that particular Securities subsequently fails to list on the Exchange.

    Clients should read the following risk disclosure before trading in Grey Market:
    Terms and Conditions of Grey Market
    • Clients should undertake grey market trading of the new securities via our Company’s electronic over-the-counter trading facility.
    • Clients agree to comply with the following terms and conditions under any circumstance, and our Company has the final rights of addition, amendment or cancelation in relation to the following terms and conditions.
    • If there is postponement, cancellation or alternation to the listing time of new securities, anyone aforesaid circumstances occurs, and hence the relevant security subsequently fails to list on the Exchange on the next trading day, all orders placed or executed via our electronic over-the-counter trading facility will be cancelled and void.
    • Suspension, breakdown, or disruption of our electronic over-the-counter trading facility
    (i) Orders placed by Clients and successfully recorded by our electronic over-the-counter trading facility under these circumstances will be executed with no exception.
    (ii) When anyone aforesaid circumstances occurs, Clients should bear their own risks attached to pre-IPO trading. Our company will not be responsible for any matter caused by the fault, failure or malfunctioning of our electronic over-the-counter trading facility.
    (iii) When anyone aforesaid circumstances occurs, relevant announcements will be shown on our electronic over-the-counter trading facility and/or Company’s website as soon as practicable. And we may exercise our sole discretion to cancel or void the placed or executed orders.
    • Adverse weather with tropical cyclone warning signal number 8 or above or “black” rainstorm signal
    (i) If adverse weather warning is issued BEFORE 4:00pm, we will post the relevant announcements on the Company’s website.
    (ii) If adverse weather warning is issued AFTER 4:00pm, the Grey Market trading session will be opened as scheduled
    • Failure of settlement
    (i) In the event that the Client in selling any Securities fails to deliver relevant Securities, the Company is entitled to purchase in the market and/or on our electronic over-the-counter trading facility (at the prevailing market price) the relevant Securities required for delivery in respect of such sale effected for the Client in order to complete the settlement of the relevant transaction. The Client shall bear all losses arising out of or in connection with such transaction;
    (ii) In the event that (1) the Client buys Securities from a seller and such seller fails to deliver the relevant Securities and (2) the purchase of the relevant Securities cannot be effected or the Company in its absolute discretion determines not to purchase the relevant Securities pursuant to clause (i), the Client will not be entitled to obtain the relevant Securities at the matched price and shall only be entitled to receive the money paid for the purchase of the relevant Securities;
    (iii) In the event that the Client in buying any Securities fails to deposit the necessary settlement amount, the Company is entitled to sell any and all Securities or collateral held in its Account and use the sale proceeds after deducting all costs in settlement of the transaction. However, if the Client is the seller under such transaction and such transaction cannot be settled, the Client shall only be entitled to the relevant Securities but not the sale proceeds of the relevant Securities; and
    (iv) Without prejudice to the above, the Client shall bear its own losses or expenses and shall be responsible to the Company for any losses and expenses resulting from its and/or its counterparty's settlement failures.
    The terms and conditions of this service have been translated into Chinese. If there is any inconsistency or ambiguity between the English version and the Chinese version, the English version shall prevail.
    By visiting this page, Clients agrees to accept unconditionally the terms and conditions of this service and as they may be revised and/or amended from time to time by our Company without prior notice to clients. Please check this page regularly for any revisions and/or amendments which may be made.

    Risk of using our electronic over-the-counter trading facilities
    • Clients should only undertake trading via our electronic over-the-counter ("OTC") trading facilities if Clients understand the nature of such trading and such trading facilities and the extent of their exposure to risks.
    • By trading on our electronic over-the-counter trading facility, Clients are exposed to the credit, settlement and other risks of the counterparty to the relevant OTC transactions, including (but not limited to) transactions of Securities before their listing on the Exchange. Settlement of the relevant transactions is not guaranteed and Clients will be responsible for any losses or expenses resulting from their and/or their counterparty's settlement failures.
    • Trades executed on our electronic over-the-counter trading facility may be cancelled and void if that particular Securities subsequently fails to list on the Exchange.
    • Furthermore, their orders may only be partially executed, or not at all, as a result of the lower liquidity in trading on our electronic over-the-counter trading facility as compared to regular market hours of the Exchange.
    • There may also be greater volatility in trading on our electronic over-the-counter trading facility than in regular market hours of the Exchange. The lower liquidity and higher volatility in trading on our electronic over-the-counter trading facility may then result in wider than normal spreads for a particular type of Securities.
    • The prices of Securities traded on our electronic over-the-counter trading facility may differ significantly from their opening or traded prices transacted during the regular market hours upon the listing of the Securities on the Exchange. The prices displayed on our electronic over-the-counter trading facility may not reflect the prices in other concurrently operating automated trading systems dealing in the same Securities.
    • News announcements made by the issuers may affect the price of their Securities after regular market hours. Similarly, important financial information is often announced outside regular market hours. In trading on our electronic over-the-counter trading facility, these announcements may occur during trading and may cause an exaggerated and unsustainable effect on the price of a particular type of Securities.
    • In particular, OTC market is not regulated by the Exchange and will not be covered by the Investor Compensation Fund until the relevant transaction is properly recorded on the trading system of the Exchange upon the listing of the Securities on the Exchange.
    • Clients should therefore carefully consider whether such trading is appropriate for them in the light of their experience, risk profile and other relevant circumstances and seek independent professional advice if Clients are in doubt.

    This Risk Disclosure Statement is revised or supplemented from time to time. Clients should refer to its latest version for reference.
Taiwan Stock Q and A
  1. How to trade Taiwan stock though CPY Online trading platform ?
    To trade Taiwan stock, clients should have securities account in Core Pacific- Yamaichi International, signed “Client’s Declaration – Application for Oversea Stock Trading Access Right (Individual/Corporate Account)” and apply Single Day Trading Limit.
  2. What is Single Day Trading Limit ?
    According to Taiwan Stock Exchange regulation, our company will assign a Single Day Trading Limit to every client who trade Taiwan Stock.

    Single Day Trading Limit is the Taiwan stock daily maximum transaction.

    The total monetary amount of an investor's initial buy and initial sell orders executed in day trading cannot exceed single-day trading limit. The limit amount will be re-calculated in next trading day.

    If the application amount of Single Day Trading Limit exceeds NTD 5 million, please provide relevant asset prove.

    Below example for reference:
    Stock Buy amount Sell amount Single Day Trading Limit used
    1213 400,000 - 400,000
    1100 - 200,000 400,000+200,000
    1213 - 100,000 400,000+200,000
    1213 - 50,000 400,000+200,000
    1100 50,000 - 400,000+200,000
    1100 200,000 - 400,000+200,000+50,000
    1100 - 100,000 400,000+200,000+50,000+50,000
    3737 10,000 - 400,000+200,000+50,000+50,000+10,000
  3. Can Taiwan Stock be day trading ?
    If client execute Taiwan stock day trading (accept buy first sell later only, not accept sell first buy later), should signed “臺灣有價證券當日沖銷交易風險預告書暨概括授權同意書”. Client shall have opened an account for three full months and shall have had at least 10 transactions within the most recent one year, or should be an institutional professional investor, otherwise Taiwan stock day trading is not allowed. E.g buy Taiwan stock today, can only sell in next business day.

    Also, client should apply Day Trading limit from our company, Taiwan stock day trading is restricted by Day Trading limit. The total sum of sell orders for day trades may not exceed the day trading limit. The monetary amount of buy orders and the monetary amount of canceled sell orders need not be included in the calculation toward the day trading limit. After a limit amount has been offset, it may not be credited back for revolving use on the same day.

    Related form can be downloaded via our company website
    http://www.cpy.com.hk/us/download.htm

    Below example for reference:
    Stock Buy amount Sell amount Day Trading limit used
    1213 400,000 - -
    1213 - 300,000 300,000
    1100 200,000 - -
    1100 - 300,000 300,000+200,000
    3737 100,000 - -
    3737 - 100,000 300,000+200,000+100,000

    If client’s cumulative loss from day trading of the preceding month reaches half of the single-day trading limit or day trading limit, our company will suspend client day trading service without prior notice, client please submit application again.

    Below example for reference:
    Stock Day Trading
    Profit
    Day Trading
    Loss
    Accumulated loss from Day Trading
    1213 20,000 - 0
    1100 - (30,000) -30,000
    3737 - (15,000) -30,000-15,000
    1213 - (25,000) -30,000-15,000-25,000

    For details of Taiwan stock trading rule, please refer to Taiwan Stock Exchange website:
    http://www.twse.com.tw/en//
  4. What are trading hours for the Taiwan Stocks market ?

    The trading hours: Monday to Friday
    TWSE & GTSM General Board Listed Stocks Trading Hour:

      Trading Hour: 09:00 – 13:30 (HKT)

      Gre Tai Trading Hour: 09:00 – 15:00 (accept order by Phone only)

      Odd lot Trading Hour: 13:40 – 14:30 (Sell only) (accept order by Phone only)

      After-hour Fixed Price Trading Hour: 14:00 – 14:30 (accept order by Phone only)

  5. What is the settlement period for Taiwan stocks ?
    The settlement period is trade date plus 2 business days (T+2).
  6. Can I trade intra-day Taiwan Stocks ?
    Some of the Taiwan stock cannot trade intra-day. (i.e. If buy on T day, the earliest to sell is T+1)
  7. What is the board lot size for Taiwan Stocks ?
    The board lot size of Taiwan Stocks is 1,000 shares. The trade ticket will default to multiples of 1,000 shares. Presently, CPYI does not handle odd lots on-line. However, if you wish to sell odd lots, please contact your AE or Customer Service Department.
  8. Can I short-sell Taiwan stocks ?
    Short selling is not accepted.
  9. Does Taiwan Stock Exchange imposes a price limit ?
    Daily price fluctuations in Taiwan Stocks are limited to within 10%*of the auction reference price at market opening for the given day. For details, please refer to the regulatory requirement of the Taiwan Stock Exchange *Subject to the changes of the regulatory requirement of the Taiwan Stock Exchange.
  10. Can I change/cancel the order after confirming the order ?
    Clients could place new orders and cancel orders; order update is not available.
  11. Can I deposit NTD ?
    Do not accept NTD deposit. Using other currency equivalent purchasing power is allowed to trade Taiwan stock. However, clients must exchange NTD for settlement on the trading day, otherwise we might use our in-house exchange rate to convert the amount for settlement arrangement. If the account do not have sufficient NTD for settlement, P+6% (Cash Account) / P+3% (Margin Account) will be charged for overdue interest.
    If the client does not give any currency exchange instructions on the trading day before 3:00p.m., The Company might convert the amount into NTD on the trading day according to our in-house exchange rate on the same day.
  12. Where can I obtain more information about Taiwan stock online trading? You can refer to http://www.cpy.com.hk/us/overseas_securities.htm
  13. If my Taiwan stock is classified as Disposition Securities, what will happen ?
    If holding Taiwan stock is classified as Disposition Securities, such securities will be matched every 5 minutes manually (or longer time). Therefore clients should read Exchange circular, or access below link for details. http://www.twse.com.tw/en/page/announcement/punish.html
Investor ID Q and A
  1. What is Northbound Investor ID model ?
    Under the Northbound (Shanghai-Hong Kong stock connect and Shenzhen-Hong Kong stock connect) Investor ID model, CCEPs (Our company) are required to assign a unique “Broker-to-Client Assigned Number” (“BCAN”) to each of their Northbound trading clients. Each BCAN should be mapped to the“Client Identification Data” (“CID”) of that particular client which includes the client’s name, identity document issuing country, ID type and ID number. Each of the CCEPs is required to submit the BCAN-CID mappings of all its NB trading clients in one file (i.e. “BCAN-CID Mapping File”) to SEHK.
  2. What is “Broker-to-Client Assigned Number” (“BCAN”) ?
    CCEPs are required to generate and assign a BCAN to each of their NB trading clients following a standard format. Each BCAN should be unique to, and be able to identify, a specific client of a CCEP.
  3. What is Client Identification Data” (“CID”)?

    For each individual client of a CCEP, the CID provided by the CCEP will include the following items:

      (i) Name: the client’s full name as shown on the identity document

      (ii) ID Issuing Country: the issuing country or jurisdiction of the individual’s identity document

      (iii) ID Type: Hong Kong ID card, ID card issued by the government authority of relevant country/region, passport, or any other official identity document

      (iv) ID Number: the number of the identity document


    For each institutional or corporate client of a CCEP or TTEP, the CID provided by the CCEP will include the following items:

      (i) Name: the entity’s name as shown on the certificate of incorporation or Legal Entity Identifier (“LEI”)

      (ii) ID Issuing Country: place of incorporation

      (iii) ID Type: certificate of incorporation or LEI

      (iv) ID Number: certificate number or LEI

  4. When client trades Shanghai-Hong Kong stock connect or Shenzhen-Hong Kong stock connect, found that trading is not allowed or can place sell order only, what can I do ?
    Please contact our Customer Service hotline: (852) 2166 3888.
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