FAQ

A1.	You can go to Cornerstone Securities Limited for opening of securities trading account. Regarding the account opening requirements and procedures, please click "Account Opening" for more information.

A2.	Opening a securities trading account is free of charge. For other information about service charges, please click "Service Fee & Charges Schedule" for more information.

A3.	You can start trading once you have deposited the necessary funds into your account and received your Account Number plus Trading Passwords from CSL.

A4.

You will receive the following statements: I. Combined Daily Statement of Account and Contract Notes II. Monthly Statement The "Combined Daily Statement of Account and Contract Notes" provides details of your transactions on trading, deposit or payment taken place at the end of each trading day. The "Monthly Statement" is issued for all securities trading accounts for which there is a balance or activities during the preceding month. The same statement will also be sent to you on or before the next trading day after issuance either by e-mail to your specified e-mail address or by post to your correspondence address, subject to the option you have selected.

A5.	You can buy / sell all stocks, funds and warrants listed on the Hong Kong Exchanges and Clearing.

A6.

In case your inputted password is wrong five times in a row, your password will become invalid and your account will be blocked automatically. To reset the password, please contact us at (852) 2161 2988 for assistance. We will handle your case promptly and resend a new password to your registered email address as soon as possible.

A7.	To avoid duplication of order, you should contact us at (852) 2161 2988 to confirm the updated orders status.

A8.

You must not disclose your account number and password to anyone else. You must avoid using easy-to-guess password such as your date of birth, phone number or personally related numbers. Change your password frequently. If you suspect someone may know your password, change your password immediately. Check your daily and monthly statements as soon as possible. Should you observe any unknown or suspicious transactions, do not hesitate to contact us. When you finished using Electronic Trading Service, please logout before you leave. Avoid using public computer to login. If it is necessary, please remember to clear the website address records when you finish Electronic Trading Service session.

A9.	You can visit our office to submit application.

A10.	Our system cannot handle odd lots. In case of necessary, please contact your Sales Person or call our dealing hot line (Tel: (852) 2161 2988) for assistance.

A11.

Pre-opening Session (09:00 to 09:20) The Trading system only accepts at-auction and at-auction limit orders during the Pre-opening Session as long as the order price input into the Trading system does not deviate 9 times or more from the previous closing price or the nominal price (as the case may be), if available. The Trading system only accepts at-auction and at-auction limit orders during the Pre-opening Session and Closing Auction Session as long as the order price input into the Trading system does not deviate 50 spreads or more from the previous closing price or the nominal price (as the case may be), if available. At-auction orders can only be placed during 09:15 to 09:20, and any orders can not be cancelled or amended during those period. Continuous Trading Session (9:30 to 12:00 & 13:00 to 16:00) The Trading system only accepts limit, enhanced limit and special limit orders (with an option for an "All-or-Nothing Qualifier" that confines the order to be either executed immediately in full or rejected without being written into the central order book) during Continuous Trading Session as long as the order price input into the Trading system (i) does not deviate 24 spreads or more from the nominal price, if available, and (ii) follows the quotation rules unless the restriction is waived.

A12.

During the Pre-opening Session, the trading system of the Exchange accepts only At-auction Order and At-auction Limit Order. An At-auction Order is an order with no specified price and is entered into the trading system for execution at the final Indicative Equilibrium Price (IEP). It enjoys a higher order matching priority than an at-auction limit order and will be matched in time priority at the final IEP. Any outstanding at-auction orders after the end of the Pre-opening Session will be cancelled before the commencement of the Continuous Trading Session. An At-auction Limit is an order with a specified price. An at-auction limit order with a specified price at or more competitive than the final IEP (in case of buying, the specified price is equal to or higher than the final IEP, or in case of selling, the specified price is equal to or lower than the final IEP) may be matched at the final IEP subject to availability of eligible matching order on the opposite side. An at-auction limit order will be matched in price and time priority at the final IEP. No at-auction limit order will be matched at a price worse than the final IEP. Any outstanding at-auction limit orders at the end of the Pre-opening Session will be carried forward to the Continuous Trading Session and treated as limit orders provided that the specified price of that at-auction limit order does not deviate nine times or more from the nominal price or is one ninth or less of that price. Such orders will be put in the price queue of the input price. During the Continuous Trading Session, the trading system of the Exchange accepts only Limit Order, Enhanced Limit Order and Special Limit Order. A Limit Order will allow matching only at the specified price. The sell order input price cannot be made at a price below the best bid price, if available, whereas the buy order input price cannot be made at a price above the best ask price, if available. Any outstanding limit order will join the price queue of the input price. An Enhanced Limit Order is similar to a Limit Order except that it will allow matching of up to five price queues (i.e. the best price queue and up to the 5th queue at 4 spreads away) at one time provided that the traded price is not worse than the input price. The sell order input price can be made at a price of 4 spreads below the current bid price whereas the buy order input price can be made at a price of 4 spreads above the current ask price. Any outstanding enhanced limit order will be treated as a limit order and put in the price queue of the input price. A Special Limit Order will allow matching of up to 5 price queues (i.e. the best price queue up to the 5th queue at 4 spreads away) at one time provided that the traded price is not worse than the input price. A special limit order has no restriction on the input price as long as the order input price is at or below the best bid price for a sell order or at or above the best ask price for a buy order. Any outstanding special limit order will be cancelled. Investors may refer to “Trading Mechanism” of “Securities Trading Infrastructure” under the “Market Operations” section of the HKEx website for details.

A13.

They stand for Public Trade Types: "X" = Manual or Special Lot Direct Business transaction "Y" = Auto-match Direct Business transaction "D" = Odd lot transaction "P" = Pre-open transaction (trade concluded before market open including that concluded but not recorded in the system before market close of the previous trading day) "M" = Manual or Special lot non-Direct Business transaction "U" = Auction transaction "*" = Rejected/Cancelled transaction

A14.

Reduction of Minimum Spreads for Shares (Spread Table Part A of the Second Schedule of the Rules of the Exchange) Prices of Securities Minimum SpreadPrices of Securities From 0.01 to 0.25 0.001 Over 0.25 to 0.50 0.005 Over 0.50 to 10.00 0.010 Over 10.00 to 20.00 0.020 Over 20.00 to 100.00 0.050 Over 100.00 to 200.00 0.100 Over 200.00 to 500.00 0.200 Over 500.00 to 1,000.00 0.500 Over 1,000.00 to 2,000.00 1.000 Over 2,000.00 to 5,000.00 2.000 Over 5,000.00 to 9,995.00 5.000

A15.

The orders you place in the system will be valid within the trading hours of the day. Any unexecuted orders will not be carried forward to the next trading day. Orders received after 16:30 will be queued according to the input time and will be sent on the following trading day. Margin Call (Applicable to margin account clients)

A16.

When your accounts stock marginable value falls below your amount borrowed, you will receive our margin call. For example: Suppose you own a board lot of HSBC (approx. market value $80,000) and your account show a debit balance of $40,000. Under this situation, you will not receive any margin call since the margin ratio of HSBC is 50%. However, if the price of HSBC falls and its market value becomes $60,000, you will receive our margin call for $10,000 and then you have to deposit to settle the amount.

A17.	When clients receive our margin calls, you must meet the margin call (either make cash/collateral deposit or sell stocks) before the next trading day. If clients fail to fulfill the margin call requirement, we reserve the rights to sell the proceeds without any prior notice.

A18.

NO. Clients must fulfill their margin call requirement before placing any new buying orders. Given that you have credit balance in your margin account; you can withdraw money any time. However, you cannot withdraw money from your account if your account shows a debit balance, even you have excess margin limit.