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    Investment Financing

    Investment involves risks. To borrow or not to borrow? Borrow only if you can repay!

    Overview

    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.

    It also helps you capture more market opportunities by pledging your assets held at the Bank [2],[3]. 

    Understand your risk tolerance level

    Risk Profiling Questionnaire

    Update questionnaire

    Key features

    Gain extra liquidity and purchasing power using leverage[3]. 

    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[2], allowing you to further diversify your assets.

    Illustrations and information

    How does it work

    Calculate the loan amount

    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: 

    1. Assume he wants to subscribe an eligible investment fund with a Loan Ratio[4] of 50%

    2. The maximum amount of eligible investment fund to be subscribed: HKD50,000 ÷ (1-50%) = HKD100,000

    3. 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.

    How to calculate the investment return?

    Assume Mr. Chan purchases an eligible investment fund with a Loan Ratio[4] of 50% and the Investment Financing interest rate is 4.125% p.a. After holding the eligible investment fund for 1 year, his investment return would be as shown below:

      Terms     Amount  
    Initial own capital HKD50,000
    Loan ratio 50%
    Loan amount HKD50,000
    Investment amount HKD100,000
    Investment Financing interest rate[8] P - 1.75% = 4.125%
    Interest cost during the period HKD50,000 x 4.125% = HKD2,062.5

    If the market value of the investment fund increases by 20% during the 1-year holding period

    1. Mr. Chan invests HKD100,000 for subscription

      He receives HKD120,000 upon redemption of the investment fund

    2. His investment gain amount upon redemption: HKD120,000 – HKD100,000 – HKD2,062.5 = HKD17,937.5 

      Profit/initial own capital (%) = HKD17,937.5/HKD50,000 = 35.875%

    If the market value of the investment fund drops by 50%[9] during the 1-year holding period

    1. Mr. Chan invests HKD100,000 for subscription

      He receives HKD50,000 upon redemption of the investment fund

    2. His investment loss amount upon redemption: HKD50,000 - HKD100,000 - HKD2,062.5 = -HKD52,062.5

      Loss/initial own capital (%) = -HKD52,062.5/HKD50,000 = -104.125%

    If the market value of the investment fund drops by 50%, Mr. Chan will lose HKD50,000 together with the interest expense of HKD2,062.5.

    The above illustrations are examples for reference only. For details, please refer to Investment Financing Service Factsheet.

    calculator

    Please provide the following information to calculate the interest:[5]

    The minimum input amount is HKD 0.00.
    The maximum input amount is HKD 30,000,000.
    day(s)
    Your loan plan Result Your instalment plan
    As of 27/03/2025 13:40 HKT
    Monthly repayment amount
    HKD HKD -
    Monthly flat rate
    - %
    Monthly handling fee (%)
    HKD -
    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)
    The Annualised Percentage Rate of Debt Consolidation Instalment Loan is -
    Your payment will be as follows if you make no additional changes using this account:
    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) -
    If you pay off the balance amount in 36 months, you can save HKD - for the total payment amount.
    Annual interest rate
    - %
    Annualised Percentage Rate (”APR“)
    - %
    Daily interest payable Daily interest paid
    HKD 0.00
    Monthly interest paid[6] Monthly interest paid[7]
    HKD - 0.00
    Interest rate Effective rate (p.a.)
    3.50 %
    Monthly minimum payment amount
    HKD -
    Total interest to be paid[2]
    HKD -
    Annualised interest rate (p.a.)
    -
    Apply
    Link
    Your loan plan

    Service is temporarily unavailable

    Please try it later

    Try again
    Step 1
    Log on to Hang Seng Mobile App and tap via left menu:
    • "Investments" "My Investment" "Trade & Services" "More" "Apply for Investment Financing"; or
    • "Investments" "Investment Funds" "Fund Holdings / Trade" "Investment Financing"

    FAQs

    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 ("Investment" > "Investment Funds" > "Holdings & Trading" > "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. 

    Open Investment Financing Trading and Settlement Accounts

    Contact your Relationship Manager or visit our branches

    Comprehensive investment experience is just a few steps away

    Find your nearest branch

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    Footnote

    Other point(s) to note

    1. Hang Seng Bank Limited reserves the right to suspend or terminate the Investment Financing Service with immediate effect. Customer shall pay interest on the loan amount as prescribed by the Bank. Please refer to Terms and Conditions for details.
    2. This webpage has not been reviewed by the SFC.
    3. To borrow or not to borrow? Borrow only if you can repay!
    4. The Facility is subject to annual review by the Bank. The Bank may (and is not obliged to) renew the Facility as it considers appropriate. The Bank will notify customers using the Facility if it decides not to renew the Facility.

    Remark(s)

    1. Eligible Securities means securities that are not listed on any stock exchange (whether in Hong Kong or overseas), including investment funds, bonds and other investment products which the Bank may at its discretion prescribe or accept for handling under the Service from time to time.
    2. Investment involves risk.
    3. 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.
    4. Loan Ratio means, in respect of each Eligible Securities subscribed or to be subscribed by the customer, the portion of the subscription price of the relevant Eligible Securities which may be financed by the Facility as prescribed by the Bank at its discretion from time to time.
    5. The result of this calculator is for reference only and the actual interest to be paid will depend on the actual daily Loan Amount and the terms stated in the Investment Financing Service Application Form and Investment Financing Service Terms and Conditions.
    6. The above interest rate is applicable for new applications of Investment Financing service. "P" represents the HKD Prime Rate as quoted by the Bank from time to time.
    7. Monthly interest paid is calculated by assuming each month has 30 days and the daily Loan Amount remains unchanged.
    8. The interest rate refers to the interest rate for loan amount within the Available Limit and subject to change as determined by the Bank from time to time and notification to customer upon the customer's enquiry. "P" represents the HKD Prime Rate as quoted by the Bank from time to time. As of 13 Mar 2024, the Bank’s HKD Prime Rate is 5.875%. Assume the interest rate remains unchanged during the 1-year period in the example.
    9. When the market value of investment fund drops, Margin Call and Force Liquidation may be triggered in accordance with the thresholds set out by the Bank. The loan amount in excess of Available Limit would be charged at unauthorised interest rate.
    10. You can view and download the Terms and Conditions for Securities Account (effective 1 February 2020) and Notice of Amendments (effective 13 January 2025) on or before 13 March 2025.

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