Management Trainee Program (Aug 26, 2008)

Shares Trading Operations

Presented by Paul S Y Chong

Overview
Structure of Loans, Securities & Insurance Processing Securities Account Opening Documents Physical stock deposit or withdrawal Settlement Instruction - Share Transfer Common Charges Q&A

Loans, Securities & Insurance Processing

Paul Chong V.P. CTSD Paul Chong Team Head Loans, Securities & Insurance Processing Mutual Fund/Bonds/ELI/Structured Note Share Trading Insurance Processing Loan Processing

Account Opening Documents

General Terms & Conditions for Securities Trading , Margin Trading &/ Trading in Mutual Funds (Form 1042) Investment Account Opening Form For Individual Clients (Form 1043) Investment Account Opening Form For Corporate Clients (Form 1043A) Client Investment Profile Questionnaire (Form 1045)

Account Opening Documents

An Acceptance Letter of Opening / Operating Securities Account (Form 18) Certified Copy Of Board Resolutions Authorizing A Company To Obtain Securities Trading Services (730A)

Points to note - Account Opening Form (Form 1043)

Account must not be opened for customer having an US address Mark the settlement account clearly on Section 2 (For cash trading account) Settlement account should be a current account without credit facility attached AND same title of the share account

Points to note - Account Opening Form (Form 1043)

Apply the Electronic Banking Services for Margin Trading Account Customers as no check book will be issued to them - Form 712D E-Banking Services Main. Form An Operations Officer (not necessary be a SDS) is to review the correctness and completeness of the Form and signed in theReviewed By Column

Points to note - Account Opening Form (Form 1043)

Banking Center Manager should sign on the Approved By column after reviewing the form. If absent, his deputy ( also be a SDS) should sign Responsible SDS should sign on behalf of the Bank on this form (Agreement) in opening the account with customer

Points to note - Account Opening Form (Form 1043)

Risk Disclosure Statement (Clause 24 T&C)

Banking Center Representative ( Registered in SFC) is required to explain to customer regarding the risk of securities trading , margin trading etc Banking Center Representative (Registered in SFC) is required to sign on the Declaration by Staff after he explains the statement to customer

Other Information Form 1043

Account holder should be the ultimate beneficial owner. If not, refer Compliance Officer before account opening If account holder is an employee of any Registered Person, obtain approval from his employer and provide duplicate statement (Form 18)

Form 18

Certified Copy Of Board Resolution Form 730 A

Sign and type the full name in paragraph 3 for the authorized persons to sign the Account Opening Form (1043A) Stipulate number of authorized persons required to act in paragraph 4 Sign and type the full name in paragraph 5 for the authorized officers to sign for the operations of the Securities Account

Certified Copy Of Board Resolution Form 730 A

Stipulate number of authorized officers required to act in paragraph 6 Sign by the Chairman of the Meeting

Physical Shares Deposit and withdrawal

Securities Lodgment Form (Form 884) Standard form of Transfer Securities Release Order

Share Lodgment
Customer must either sign on the back of the shares or sign a Transfer Form in order to make the shares transferable Acknowledge the shares by provide a copy of completed Form 884 to customer Share lodgment takes 3 weeks, customer is not allowed to sell the shares before completing the lodgment process

Form 884

Withdrawal of shares
Shares withdrawn are in name of HKSCC Nominees Limited. Customers are advised to re-register the shares Hand Form 504B duly signed by BM to SIP for withdrawal case where customer requests the shares to be collected at Banking Center.

Form 504B

Form 1018

Common Charges - Trading

Bank charges :
Brokerage

Commission Tier Pricing Lodgment fee - $5 per lot , min $30 and max $500. ( Purchase only)

Out-of-pocket charges :
Levy

- 0.007% on gross trade value ( 0.005% Transaction Levy, 0002% Investor Compensation Levy Stamp duty - 0.1% round up to dollar

Common Charges - Trading

Trading

fee 0.005% on gross trade value SI fee - $1/SI Money settlement fee - $1.2/SI Stock settlement fee 0.002% on gross trade value, min $2 and max $100

Common Charges SI

Bank charges :
Lodgment

fee (Deposit) - $5 per lot, min $30 and max $500. Handling fee (W/D) - $100 per request

Out-of-pocket charges :
SI

fee - $1/SI Stock settlement fee 0.002% on gross trade value, min $2 and max $100 SI versus payment - $1.2/SI

Common Charges Physical share lodgment

Bank charges :
Lodgment

fee - $5 per lot , min $30 and

max $500.

Out-of-pocket charges :
Deed

transfer fee ( Re-reg in Banks name ) - $5 per deed Deed transfer fee ( Re-reg in HKSCCs name) $5 per deed Registration fee - $2.5 per certificate

Common Charges Physical shares withdrawal

Bank charges :
Handling

fee - $100 per request fee ( by HKSCC) - $3.5 per lot

Out-of-pocket charges :
Withdrawal

LSIP contact persons

Manager Paul Chong (2571) Assistant Manager Venus Tang (2624) Assistant Vice President Edwin Chan (2605) Assistant Manager Iris Kwok (2608) General Enquire Francis Chong (2623) Danidy Chow (2595) Iris Wat (2604)