Dealing Practices and Procedures
(applicable to Securities listed on The Stock Exchange of Hong Kong only)

  1. The trading hours for Hong Kong Stock market is conducted from Monday to Friday (except public holidays) at the following time intervals:
    Pre-opening session 9:00a.m.
    to
    		9:30a.m.
    Morning session 9:30a.m.
    to
    		12:00noon
    Afternoon session* 1:00p.m.
    to
    		4:00p.m.
    Closing auction session# 4:00p.m.
    to
    		4:10p.m.
    (*not available on Half-Day Trading including the Christmas Eve, New Year's Eve and Lunar New Year's Eve)
    (# The closing auction session is available between 12:00noon and 12:10p.m. for half day trading only)
    Remarks: Extended Trading Securities (also known as ETS) are traded continuously from 9:00a.m. to 4:00p.m.

  2. The broker numbers of East Asia Securities assigned by the Hong Kong Exchanges & Clearing Limited ("HKEX") within the Automatic Order Matching and Execution System ("AMS/3") are 1985 to 1989, 2010 to 2021 and 2023 to 2029.

  3. Client should maintain or deposit sufficient fund in the designated bank account maintained with the Bank of East Asia, Limited to meet any purchase consideration prior to the placing of buy orders. If there is insufficient fund in client's designated BEA bank account, East Asia Securities shall not be obliged to execute the buy orders partially or at all.

  4. Client should read the Online Tutorial section under East Asia Securities web site in detail in order to understand the proper dealing procedures via Internet and to avoid any unnecessary delay or error in online dealing.

  5. After giving instructions to East Asia Securities via Cybertrading System (Internet / Mobile Phone / Automated Phone), client should notify East Asia Securities by phone immediately if:

    a. Client has not received accurate acknowledgement of the Instruction or of its execution through email (placed via Internet) or SMS (placed via Mobile Phone) or an unique transaction reference number (placed via Automated Phone); or
    b. Client has received acknowledgement of an instruction or a transaction confirmation which he has not given.

  6. Once client's order has been accepted by our Internet Trading Platform, an unique transaction reference number will be generated from our system for client's reference. Client can use the transaction reference number for checking the updated status of the relevant order either through the "Order Management" function or "Mailbox" function. Client's portfolio will be updated instantly once client's order is being executed.

  7. Apart from email acknowledgement and confirmation, client will also receive a Daily Consolidated Statement showing the charges and net amount of all transactions being executed.

  8. Due to unpredictable traffic congestion and other reasons, Internet is an inherently unreliable medium of communication and that such unreliability is beyond the control of East Asia Securities. There may be time lag or delays in the transmission of data and receipt of Instructions and other information and that may result in delays in the execution of Instructions and/or the execution of Instructions at price different from those prevailing at the time the Instructions were given. It is possible that client may not be able to cancel an Instruction after it has been given.

  9. With our straight-through order processing trading system, client's orders will be routed directly to AMS/3 of HKEX for execution. To avoid unnecessary delay and error, client should pay attention to the following trading parameters when inputting the mandatory fields of an instruction:
    a. Input of a Session Order BUY order with order price 10 price spreads higher than the prevailing ask price will be rejected
    b. Input of a Session Order SELL order with order price 10 price spreads lower than the prevailing bid price will be rejected
    c. Increase in order quantity when the order status is "NEW" or "Q" will be rejected. In this case, the original order MUST be cancelled first before placing another new order
    d. Decrease in order quantity with increase/decrease in order price simultaneously is allowed irrespective of the order status is "Q" or "NEW"
    e. Input of a buy/sell order quantity greater than the -3,000- board lots will be rejected


  10. East Asia Securities provides you with a Session Order that our system will automatically determine the type of your submitted order according to the order type of the current or next trading session and dispatch your order to the market for matching and execution. Default order type is Session Order and cannot be changed by clients. The following table shows the abbreviation and respective explanation of order status code:
     

    Order Status Code

    Status

    CAN

    Cancelled

    FEX

    Fully Executed

    NEW

    Placed

    PDN

    Pending

    PEX

    Partially Executed

    QUE

    Queued

    RD

    Reserved

    REJ

    Rejected

    WA

    Waiting For approval


  11. The spread of a security depends on its share price:

    Spread Table
    (applicable to all types of currencies)

    For all securities other than debt:

    Price Range

    Spread

    0.01

    -

    0.25

    0.001

    >0.25

    -

    0.50

    0.005

    >0.50

    -

    10.00

    0.010

    >10.00

    -

    20.00

    0.020

    >20.00

    -

    100.00

    0.050

    >100.00

    -

    200.00

    0.100

    >200.00

    -

    500.00

    0.200

    >500.00

    -

    1,000.00

    0.500

    >1,000.00

    -

    2,000.00

    1.000

    >2,000.00

    -

    5,000.00

    2.000

    >5,000.00

    -

    9,995.00

    5.000


    For All Debt Securities:

    Price Range

    Spread

    0.50 - 9,999.95

    0.05



  12. AMS/3 Trading Parameters:

    Trading Parameters
    1. Quotation Rules
    24 spreads

    2. Price warning

    Over 20 spreads
    3. Maximum number of matchable price queues(For Enhanced Limit Order & Special Limit Order)
    10 queue


  13. Trading practice and mechanism for Pre-opening Session:

    Pre-Opening Session 1

    Time

    09:00

    09:15

    09:20 - 09:22

    After Matching - 09:30

    Session

    Order Input Period

    (15 mins)

    No-cancellation Period

    ( 5 mins）

    Random Matching Period3

    （0 - 2 mins)

    Blocking Period

    （8 -10 mins)
    Price Limit Previous closing price +/- 15%
    2

    Within lowest ask & highest bid

    (recorded at the end of Order Input Period)4

    		 Unfilled orders will be carried forward to CTS

    Order Input

    Allowed ✔

    Allowed ✔

    Allowed ✔

    Order Amendment or Cancellation Allowed ✔

    Not allowed ✘

    Not allowed ✘
    1. Applicable to all Equities (including depository receipts, investment companies, preference shares and staple securities), Funds (including Exchange Traded Funds (ETFs), Real Estate Investment Trusts (REITS)), Leveraged and Inverse Products.
      Exclude structured products (Including Derivative Warrants (DW), Callable BullBear Contracts (CBBCs) and Inline Warrants (IWs)), debt securities, equity warrants and rights.
    2. In the absence of the Previous Closing Price (e.g. IPO stocks) and stocks resuming from trading suspension, price limit checking will be relaxed for Order Input Period.
    3. Order input allowed until matching starts randomly within 2 minutes.
    4. In case there is no buy order and/or sell orders recorded at the end of Order Input Period, price limits of No-cancellation Period and Random Matching Period will be same as the price limit of Order Input Period.


  14. Trading Mechanism of Volatility Control Mechanism (“VCM”):

    VCM Enhancement
    Type of VCM Dynamic price limit model at the individual stock level to capture rapid price changes
    Product Coverage Constituents of All Hang Seng Composite LargeCap, MidCap and SmallCap Indexes
    Applicable trading session Only applied in Continuous Trading Session (CTS) but not auction sessions (Remark)
    Reference Price Last traded price 5 minutes ago
    Triggering level

    HSCI LargeCap : +/- 10%:

    HSCI MidCap : +/- 15%

    HSCI SmallCap : +/- 20%
    No. of triggers Unlimited to trigger in CTS
    Cooling-off procedures Trading within band during 5 minutes cooling-off period
    Remark: For VCM monitoring, it exclude first 15 minutes of morning and afternoon CTS and last 20 minutes of the last CTS of the day.

    In the case that market is affected due to bad weather (e.g. hoisting of typhoon signal no.8 or above or issuance of black rainstorm warning).

    Open is delayed - the first 15 minutes after market open will not be subject to the VCM monitoring.

    Early close - cooling-off period can still be triggered in the last 15 minutes before market close and can continue until market close.



  15. VCM applicable period on normal trading day:

    Normal Trading Day
    Period VCM Applicable
    09:00-09:30 No
    09:30-09:45 No
    09:45-12:00 Yes
    12:00-13:00 Lunch Break
    13:00-13:15 No
    13:15-15:40 Yes
    15:40-16:00 No
    16:00-16:10 No


  16. Trading Mechanism of Closing Auction Session:

    Time / Duration

    Periods

    Main Features

    3:59 pm to 4:00 pm
    ( 1 minute )

    Continuous Trading Session
    • Reference price is determined in the last minute of the Continuous Trading Session

    4:00 pm to 4:01 pm
    ( 1 minute )

    Reference Price Fixing Period

    • Calculation and dissemination of reference price

    4:01 pm to 4:06 pm
    ( 5 minutes )

    Order Input Period

    • Price limit is ±5% from reference price
    • System will automatically carry over unexecuted orders from the Continuous Trading Session that are within the price limit
    • Buy/Sell orders within the price limit can be entered , amended or cancelled

    4:06 pm to 4:08 pm
    ( 2 minutes )

    No-Cancellation Period

    • Price limit is further tightened to between the lowest ask and the highest bid recorded at the end of Order Input Period
    • Buy/ Sell orders within the price limit can be entered,but cannot be amended or cancelled

    4:08 pm to 4:10 pm
    ( 2 minutes )

    Random Closing Period

    • Buy/ Sell orders can still be entered before the random close, but cannot be amended or cancelled
    • Actual closing time is determined randomly by the system
    • System will match all orders at the price where the highest volume can be traded


  17. Trading arrangements upon approach of Typhoon and Black Rainstorm Warning:

    a. If the pre-opening session / morning session is cancelled due to the Typhoon or Black Rainstorm Warning, all placed orders will be automatically carried forward to the morning / afternoon session, where appropriate, for execution on the same day;
    b. If the afternoon session is cancelled due to the Typhoon or Black Rainstorm Warning, all unexecuted orders or orders with unexecuted quantity being placed before the market close will be automatically cancelled at the end of it;
    c. If the whole trading day is cancelled due to the Typhoon or Black Rainstorm Warning, all placed orders will be automatically carried forward to the next trading day for execution. Clients are required to cancel those orders themselves if they do not wish to keep them.