Terms and Conditions of Investment Financing Service Offer:

  1. Application period is from 2 January 2024 to 28 March 2024 (both days inclusive) ("Application Period").
  2. The offer is only applicable to Prestige Banking or Prestige Private customers who have successfully applied for Investment Financing Service during the Application Period ("Eligible Customer").
  3. Eligible Customer is entitled to interest rate of P-2% per annum on or before 30 June 2024 ("Offer Period"). "P" represents the HKD Prime Rate as quoted by Hang Seng Bank Limited ("the Bank") from time to time. This offer is not applicable to the Loan Amount in excess of the Available Limit (as defined in the Investment Financing Service Terms and Conditions) which shall be charged in accordance with the Interest Rate set out in the Investment Financing Service Application Form.
  4. After the Offer Period, the interest rate for the outstanding Loan Amount within the Available Limit shall be charged in accordance with the Interest Rate set out in the Investment Financing Service Application Form (which is P-1.75% per annum currently).
  5. This offer is not applicable to customers who terminated Investment Financing Service in the past 12 months at the time of submitting the Investment Financing Service application.
  6. The approval of the Investment Financing Service is subject to the Bank’s final decision.
  7. The offer is not applicable to Commercial Banking, Private Banking Account customers and staff of the Bank. The offer cannot be used in conjunction with other offers for the same product(s) or service(s) of the Bank.
  8. No person other than the Eligible Customer and the Bank (which includes its successors and assigns) will have any right under the Contracts (Rights of Third Parties) Ordinance to enforce or enjoy the benefit of any of the provision of these Terms and Conditions.
  9. These Terms and Conditions are governed by and will be construed in accordance with the laws of the Hong Kong Special Administrative Region.
  10. These Terms and Conditions are subject to prevailing regulatory requirements.
  11. For more details of the offer, please contact the Bank’s staff. The offer is provided by the Bank, which reserves the right to suspend, vary or terminate the offer and to amend these Terms and Conditions at any time without prior notice. The Bank also reserves the right of final decision on all matters relating to the offer, which shall be binding on all the parties concerned.
  12. In case of any discrepancy between the English and the Chinese versions of these Terms and Conditions, the English version shall prevail.

To borrow or not to borrow? Borrow only if you can repay!


Risk Disclosure of Investment Funds

  • Investors should note that all investments involve risks (including the possibility of loss of the capital invested), prices or value of investment fund units may go up as well as down and past performance information presented is not indicative of future performance. Investors should read carefully and understand the relevant offering documents of the investment funds (including the fund details and full text of the risk factors stated therein) and the Notice to Customers for Fund Investing before making any investment decision. Investment funds are investment products and some may involve derivatives. Investors should carefully consider their own circumstances whether an investment is suitable for them in view of their own investment objectives, investment experience, preferred investment tenor, financial situation, risk tolerance abilities, tax implications and other needs, etc., and should understand the nature, terms and risks of the investment products. Investors should obtain independent professional advice if they have concerns about their investment.

Risk Disclosure Statement of Investment Financing Service

  • PLEASE READ THIS RISK DISCLOSURE STATEMENT CAREFULLY AND CONSULT YOUR OWN LEGAL ADVISER AND/OR OTHER PROFESSIONAL CONSULTANTS AS YOU CONSIDER APPROPRIATE BEFORE YOU DECIDE TO APPLY FOR INVESTMENT FINANCING SERVICE.
  • Below are the key risks associated with Investment Financing Service (the “Facility”) which are not exhaustive. The Facility is provided by the Bank.
  1. Risk of Trading in Investment Funds and other Investment Products
    You should note that all investments involve risks (including the possibility of loss of the capital invested). Prices of units of investment funds or other investment products may go up as well as down and information on past performance is not indicative of future performance. It is as likely that losses will be incurred rather than profit made as a result of buying and selling investment products. You should read and understand the relevant product's offering documents (including the full text of the risk factors stated therein) in detail before making any investment decision.
  2. Risk of Using Leverage
    The prices of investment funds and other investment products fluctuate, sometimes dramatically. Financing transactions in investment products by collateral using leverage involves significant risk, and losses may exceed the value of your collateral and may affect your ability to repay the Facility. The higher your leverage is, the bigger your losses can be in adverse market conditions. Contingent orders such as “stop-loss” or “stop-limit” orders may not necessarily limit losses as market conditions may make it impossible to execute contingent orders. You may be required at short notice to make additional margin deposits or interest payments. If the required margin deposits or interest payments are not made within the prescribed time, your collateral may be liquidated without your consent. Force Liquidation may result in losses and you will remain liable for any resulting deficit in your account and interest charged on your account. You should therefore carefully consider whether such a financing arrangement is suitable for you in light of your own financial position and investment objectives.
  3. Risk associated with Margin Requirements
    The Facility is a financing arrangement with margin requirements. The Available Limit of the Facility is determined by the aggregate of the market value of the investment products charged by you in favour of the Bank as collateral from time to time (“Charged Securities”) multiplied by the applicable Loan Ratio and capped at the Ceiling Limit. The Loan Ratio and the Ceiling Limit are set and may be varied by the Bank from time to time. If unauthorised overdraft occurs (i.e. when the loan amount exceeds the Available Limit) for any reasons, including but not limited to decrease in value of the Charged Securities, change of the Loan Ratio or termination of the Facility, interest on the unauthorised overdraft amount will be charged at the unauthorised overdraft interest rate(s) and you undertake to forthwith repay the unauthorised overdraft amount in cash or dispose of your investments and apply the proceeds towards repayment of the unauthorised overdraft amount.
    If you do not act promptly upon receiving a Margin Call notice and do not take the required actions within a prescribed period, the Bank may exercise various rights, including the right to liquidate part or all of the Charged Securities, and the right to set-off any cash held in your account at the Bank towards any amount owing by you to the Bank under the Facility, in each case at any time and in any way the Bank considers appropriate without demand or notice to you (even if the market value of the Charged Securities drops drastically due to adverse market conditions). You will bear all losses and remain liable for any resulting deficit in your account and interest charged on your account. Commissions, fees and other charges applicable to the Facility may also increase your loss. You should therefore carefully consider whether such a financing arrangement is suitable in light of your own financial position and investment objectives.
  4. Interest Rate risk
    The interest rate applicable to the Facility is based on Hong Kong Dollar Prime Lending Rate as quoted by the Bank from time to time (“HKD Prime”) plus or minus a pre-determined rate set by the Bank. The interest rate may be subject to change over time. When HKD Prime rate increases, the interest payment under the Facility will increase.
  5. Currency Risk
    If any of the Charged Securities is denominated in a currency different from the Facility (which is denominated in Hong Kong dollar), a conversion of one currency into another currency is required and such conversion shall be calculated at the rate determined by the Bank to be prevailing in the relevant foreign exchange market at the relevant time. The value of the Charged Securities and the Available Limit of the Facility may change due to fluctuations in foreign exchange rate.
  6. Liquidity Risk
    If the Bank exercises its right to liquidate the Charged Securities under adverse market conditions, it may be difficult to sell the Charged Securities and the selling price may also be affected when there is no or little liquidity for the Charged Securities in the market. You will be liable for the shortfall if the amount of sales proceeds of the Charged Securities is not sufficient to pay off the amount owing by you to the Bank under the Facility.
  7. Risk of Providing an Authority to Hold Mail or to Direct Mail to Third Parties
    If you provide the Bank with an authority to hold mail or to direct mail to third parties, it is important for you to promptly collect in person all contract notes and statements of your accounts and review them in detail to ensure that any anomalies or mistakes can be detected in a timely fashion.
  8. Risk of Client Assets Received or Held Outside Hong Kong Special Administrative Region
    Client assets received or held by the Bank outside the Hong Kong Special Administrative Region are subject to the applicable laws and regulations of the relevant overseas jurisdiction which may be different from the Securities and Futures Ordinance (Cap.571, Laws of Hong Kong) and the rules made under it. Consequently, such client assets may not enjoy the same protection as that conferred on client assets received or held in the Hong Kong Special Administrative Region.

Please refer to Investment Financing Service Factsheet for relevant terminology.

Please refer to Investment Financing Service Factsheet for relevant terminology. Please visit Hang Seng Bank website > Personal > Investment > Other Related Services > Investment Financing.

Please refer to Investment Financing Service Factsheet for relevant terminology.