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Choose Prime Rate or HIBOR rate option — Enjoy preferential interest rates on Investment Financing!
Eligible customers who have successfully applied for the Investment Financing Service during the specified application period may enjoy a preferential interest rate offer.
Terms and Conditions apply.
Investment Financing is a revolving overdraft facility which allows you to fund your investments in a wide range of Eligible Securities[1], providing extra liquidity and flexibility.
Choose HIBOR-based[2] or Prime-based[3] rate to match your financial needs and repayment plan with greater confidence.
Gain extra liquidity and purchasing power using leverage[4].
Provide diversified choices including investment funds, check out the eligible investment fund list and Loan Ratio for details.
To achieve higher potential return by expanding your investment portfolio, allowing you to further diversify your assets.
Choose between HIBOR-based[2] and Prime-based[3] rates, to align with your risk objectives and manage your financial journey with confidence.
Mr. Chan has HKD50,000 cash in his Prestige Banking account and he wants to purchase an investment fund.
If he doesn't apply for Investment Financing Service, he can only use his own cash to purchase the investment fund.
If he applies for Investment Financing Service:
Assume he wants to subscribe an eligible investment fund with a Loan Ratio[5] of 50%
The maximum amount of eligible investment fund to be subscribed: HKD50,000 ÷ (1-50%) = HKD100,000
The loan amount in this transaction: HKD100,000 – HKD50,000 = HKD50,000
The example above is for reference only and shows only the major amounts and information in the calculation. For example, subscription fees and charges are not reflected in the example. The Bank may agree or refuse drawing under Investment Financing at its discretion on a case-by-case basis.
Please refer to Investment Financing Service Factsheet for detailed illustration and relevant terminology.
Assume that Mr. Chan purchases an eligible investment fund with a Loan Ratio[5] of 50% and selects the Investment Financing Prime-based interest rate. After holding the eligible investment fund for one year, his investment return is illustrated below:
|
Investment Financing |
|---|---|
Initial own capital |
HKD50,000 |
Loan ratio |
50% |
Loan amount |
HKD50,000 |
Investment amount |
HKD100,000 |
Investment Financing interest rate (p.a.) [8] |
P – 1.75% = 3.25% |
Interest paid during the period |
HKD50,000 x 3.25% = HKD1,625 |
If the market value of the investment fund increases by 20% during the 1-year holding period
Mr. Chan invests HKD100,000 for subscription
He receives HKD120,000 upon redemption of the investment fund
His investment gain amount upon redemption:
HKD120,000 – HKD100,000 – HKD1,625 = HKD18,375
Profit/initial own capital (%) = HKD18,375/HKD50,000 = 36.75%
If the market value of the investment fund drops by 50%[6] during the 1-year holding period
Mr. Chan invests HKD100,000 for subscription
He receives HKD50,000 upon redemption of the investment fund
His investment loss amount upon redemption:
HKD50,000 - HKD100,000 - HKD1,625 = - HKD51,625
Loss/initial own capital (%) = -HKD51,625/HKD50,000 = -103.25%
If the market value of the investment fund drops by 50%, Mr. Chan will lose HKD50,000 together with the interest expense of HKD1,625.
The above illustrations are examples for reference only. For details, please refer to Investment Financing Service Factsheet.
Please provide the following information to calculate the interest:[7]
| Debt Consolidation Instalment Loan | Credit Card Minimum Payment |
|---|
| Debt Consolidation Instalment Loan | Credit Card Minimum Payment | |
|---|---|---|
| Monthly repayment amount | HKD - | Minimum Payment |
| Total interest amount | HKD - (Save HKD -) |
HKD - |
| Repayment period | 72 month(s) (Shortened by - month(s)) |
- month(s) |
| Each month you pay (HKD) | Repayment period | Estimated total payment amount (HKD) |
|---|
| Each month you pay (HKD) | Repayment period | Estimated total payment amount (HKD) |
|---|---|---|
| Only the minimum repayment | - month(s) | - |
| - | 36 month(s) | - |
Popular questions
Investment Financing is a revolving overdraft facility which allows you to fund your investments in a wide range of Eligible Securities[1].
For customers without Hang Seng bank account, please open an account online or at our branch. The account status must be Prestige or Prestige Private; for customers with Hang Seng banking accounts, please visit our branches to apply this service.
You must fulfil designated requirements such as account segment, age, residence identity and residency, risk tolerance level and with relevant Knowledge & Experience. For details, please refer to the Investment Financing Service Factsheet.
You can view the information via your Personal e-Banking account ("Investments" > "Investment Funds" > "Fund Holdings" > "Select Investment Financing account"). Should you have any inquiries, please contact us for more details.
An SMS message will be sent to notify you that the outstanding loan amount exceeds the Available Limit or the PMR reaches the Margin Call threshold. If the situation of excessive amount lasts for a period of time, you may also receive a phone call from us as a reminder. We may get in touch with voicemail or email if you miss the phone call.
Please note that the Bank would not normally (but still may) give a Margin Call notification if the PMR has reached the Force Liquidation Threshold.
You are required to register for the "Instant Order Confirmation" service using a valid mobile number to receive Margin Call and Force Liquidation notification.
Please refer to Investment Financing Service Factsheet for relevant terminology.
You must settle the excess amount as soon as reasonably practicable (i.e. no later than the timeline prescribed by the Bank in the notification) to avoid unauthorised overdraft interests by depositing additional cash in your Investment Financing Settlement Account, or selling investment funds in your Investment Financing Trading Account and applying the sale proceeds to repay outstanding loan amount.
Force Liquidation would be triggered in accordance with the thresholds stated in the Investment Financing Service Factsheet.
No, an SMS will only be sent to inform you the transaction details after the Force Liquidation, therefore you should always keep track on the market situation and your account status. You should maintain your debit account balance within the Available Limit to avoid triggering the Force Liquidation Threshold.
Yes. You may submit an application form at any of our branches to switch between the Prime-based rate and the HIBOR-based rate. The new interest rate will take effect on the 21st day of each month (or, if such day falls on a Sunday or public holiday, on the immediately preceding day which is not Sunday or public holiday). You may submit up to one application per month. A Change of Loan Terms Handling Fee of HKD 1,000 will be charged per request. The Bank may at its absolute discretion approve or decline the application. Please refer to Key Facts Statement for Overdraft Facility — Investment Financing or Bank Tariff Guide for Hang Seng Retail Banking and Wealth Customers for fee & charges details.
Comprehensive investment experience is just a few steps away
Investment involves risks. To borrow or not to borrow? Borrow only if you can repay!
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 Hang Seng Bank Limited (the “Bank”).
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.
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.
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 Hang Seng 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 Hang Seng 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 Overlimit Interest Rate 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, Hang Seng 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 Hang Seng towards any amount owing by you to Hang Seng under the Facility, in each case at any time and in any way Hang Seng 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.
The interest rate of the Facility (“Interest Rate”) is based on 1-Month Hong Kong Interbank Offered Rate (“1m-HIBOR”) as quoted by The Hong Kong Association of Bank / HKD Prime Rate as quoted by Hang Seng (the “HKD P”) plus / minus a pre-determined rate from time to time, which is subject to change from time to time and is not fixed and has no upper limit. You may suffer from increase in interest payment due to the increase in 1m-HIBOR / HKD P, which may lead to an increase in financing cost. The borrower may not be able to repay the Facility and may hence default when there is a substantial increase in the interest rate.
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.
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.
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.
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.