Wealth Financing
Smart financing
with funding flexibility
CCB (Asia) Wealth Financing allows you to leverage initial investment with a wide range of collaterals, providing you with greater financial flexibility and ability to seize market opportunities.
Greater financial flexibility
With CCB (Asia) Wealth Financing, you can customize your portfolio to fulfil your needs at any time while enjoying flexible repayment offers.
A wide range of collateral options
Eligible collaterals under CCB (Asia) Wealth Financing include HKD time deposits, foreign currency time deposits and mutual funds.
Eligible collaterals and maximum loan ratio#
| Eligible collaterals |
Maximum loan ratio |
| Mutual Fund |
85%of asset market value |
| HKD and Foreign Currency Time Deposit |
95% |
Capture global investment opportunities
- Applying for CCB (Asia) Wealth Financing is simple and once your application is successfully approved, you can be offered cash for more financial flexibility and maximize the potential return of your wealth with competitive borrowing costs.
- As low as 2.12%* p.a. (i.e. 1-month HIBOR +0.8%, capped at HKD Prime rate -2.5%) for Premier Select / Premier Banking / Wise Banking / Mortgage customers.
Example
Under the assumption that the asset market value of your eligible collateral mutual fund is HK$1,000,000 and under the basis that the loan ratio is at 65%, you can be offered extra liquidity of up to HK$650,000. This can be used for cash flow or other financial products at your discretion to assist you in achieving your investment goals without needing to sell any of your holdings.
| Asset market value of your eligible collateral mutual fund |
HK$1,000,000 |
| Overdraft amount |
HK$650,000 = (1,000,000 x 65%) |
Comparison of returns
| |
Original Portfolio (HKD) |
Portfolio with Wealth Financing (HKD) |
| Total investment amount |
1,000,000 |
1,650,000 (1,000,000 + 650,000) |
Annual return
(Assuming 10% return / -10% loss rate) |
100,000
(1,000,000 x 10%) |
- 100,000
(1,000,000 x -10%) |
165,000
(1,650,000x 10%) |
-165,000
(1,650,000 x -10%) |
Interest cost of CCB (Asia) Wealth Financing
(Assume an annualized overdraft interest rate of 2.12% *) |
Not applicable |
13,780
(650,000 x 2.12%) |
| Net gain/loss |
100,000 |
-100,000 |
151,220 |
-178,780 |
Investment return/loss rate*
(Based on the original investment of HK$1,000,000) |
10% |
-10% |
15.12% |
-17.88% |
To borrow or not to borrow? Borrow only if you can repay!
Risk Disclosure
- Market interest rates may rise, and may even rise significantly, during the term of the CCB (Asia) Wealth Financing. Therefore, the borrowing cost may turn out to be much higher than expected.
- Foreign exchange fluctuations may affect the value of loans and collateral if the currency of the loan is different from the currency of the collateral. Foreign exchange rates may fluctuate significantly and may be affected by a variety of external factors.
- Customers may be called upon at short notice to deposit substantial additional collateral to maintain their positions and, if necessary, a forced sale of their assets may be executed without their consent. Please refer to the General Agreement for Customers and other relevant customer documents for details. In poor market conditions, Customers may have to meet the requirement at short notice while their ability to make top-up payments may be much worse than during normal times, due to the significant fall in market value of other financial assets.
- Investment involves risks. If a Customer uses the money borrowed using Wealth Financing service to purchase additional mutual funds or other assets with capital risk, Customer will be exposed to higher risks as he/she holds a larger amount of capital at risk. Customer should consider carefully before doing so. Customers should seek independent advice before applying for CCB (Asia) Wealth Financing and purchasing such assets.
- When investing with CCB (Asia) Wealth Financing, a small change in price can have a multiplying effect on Customer's profit or loss, and the degree of risk faced by Customer is significantly increased. The risk of loss in leveraged trading can be substantial. Customers should consider carefully whether CCB (Asia) Wealth Financing is suitable for them in light of their financial position and investment objectives. Customers should have sufficient net wealth to bear the risks and potential losses of investing with CCB (Asia) Wealth Financing and to repay the loan in a timely manner in the event of market volatility or a sharp fall in the price of the investment products.
- The Hong Kong Monetary Authority or other government or regulatory authorities may take action to curtail or restrict the Bank's ability to trade in respect of open positions, and Customers may be required to reduce or terminate their open positions with the Bank as a result.
General Terms & Conditions
- The Bank reserves the right to revise and modify the eligible collateral, loan ratio of the collateral, overdraft amounts and overdraft interest rate without prior notice.
- The Bank reserves the right to decide whether to accept the application based on the Customer's credit report and the information provided by the Customer. If the Customer's application is rejected, no reason is required. The Bank reserves the right to offer Customers different annual interest rates, repayment terms or overdraft amounts based on individual approval results. The application is subject to the terms and conditions set out in the relevant documents signed by the Customer and the Bank.
- The above information is for reference only. For more product details and terms and conditions, please refer to the relevant key facts statement and application form or please contact the staff of the Bank.
