Standard Chartered Wealth Lending

1. Interest rates may rise during the term of the Facility. It is impossible to predict accurately changes in interest rates and they could possibly rise substantially. Borrowing costs under the Facility could turn out to be much higher than expected.
2. Customers may be called upon at short notice to deposit substantial additional collateral to maintain their position, and a forced sale of assets, without Customer’s consent, may be necessary, including (but not limited to) in cases where (i) a Customer experiences difficulty in servicing its borrowing under the Facility, (ii) the market value of the collateral falls below the minimum level required by the Bank, (iii) the Lending ratio, Top-up ratio or Sell-down ratio in respect of the collateral is adjusted downwards by the Bank, or (iv) the Bank decides to not to renew the Facility at the annual review. The risk of loss in financing a transaction by deposit of collateral is significant, and Customers may sustain losses in excess of any cash and any other assets deposited as collateral and will remain liable for any resulting deficit in Customer’s account.
3. If a Customer purchases investment funds / assets / schemes or any assets in respect of which there is a risk of capital loss with the Facility, Customer should note that the risks will be magnified as they will have a larger amount of capital at risk. Customer should consider carefully before deciding to borrow to finance the holding or purchase of any such assets, and should take independent professional advice before taking out the Facility or purchasing any such asset.
4. If the currency of the loan is different from the currency of the underlying collateral, foreign exchange rate risk implications may affect the value of the loan and underlying collateral. Foreign exchange rates can be highly volatile and can be affected by many external factors such as changes in political and economic policy (both overseas and locally), political instability, wars, natural disasters and global market movements.
5. InvestPower is subject to the risk of market fluctuation. The value of the Customer’s holdings may be reduced as a result. Customer should have sufficient net worth to be able to assume the risks and bear the potential losses of leveraged investments. Establishing a stop loss level may help limit the amount of losses but the order may be executed at a worse-off price and may not always be effected because market conditions may make it impossible to execute such order.
6. The use of leverage in investment means that relatively small price movements will have a multiplying effect on Customer’s corresponding gains or losses, and the degree of investment risk Customers face is greatly increased. The risk of loss in leveraged trading can be substantial. A high degree of leverage can work against Customers as well as for them, and the use of leverage can lead to large losses as well as gains. Customer may sustain losses in excess of Customer’s initial margin funds. Placing contingent orders, such as “stop-loss” or “stop-limit” orders, will not necessarily limit losses to the intended amounts. Market conditions may make it impossible to execute such orders. Customer may be called upon at short notice to deposit additional margin funds. If the required funds are not provided within the prescribed time, Customer’s position may be liquidated. Customer will remain liable for any resulting deficit in Customer’s account. Customer should therefore carefully consider whether such trading is suitable in light of Customer’s own financial position and investment objectives.
7. The Hong Kong Monetary Authority or other governmental or regulatory bodies may take action which has the effect of curtailing or placing restrictions on the Bank’s ability to trade in respect of open positions, and Customer may consequently be required to close or reduce its open positions with the Bank.
8. While the bank may assess your suitability before recommending an investment product to you, this is independent from the assessment of the risks of utilising financing in relation to that investment. Utilising loans to make investments exposes you to higher risks than if you were to enter into the same investments without leverage. Losses as well as gains on the investments will be magnified.

• WealthPro (“Facility”) is subject to annual renewal with credit review by Standard Chartered Bank (Hong Kong) Limited (the “Bank”).
• Facility is subject to mark-to-market and margin call action may be required by the clients.
  If the outstanding loan amount exceeds the line limit, the Bank will have the right to request you to provide additional collateral or to pay down any outstanding loan amount exceeding the line limit, or even the right to sell down the collateral in order to pay off the amount by which any outstanding loan amount exceeds the line limit. The Bank, at the Bank’s discretion and by notice to you, may impose a higher rate of interest on any amount which may be made available to you or which is outstanding in excess of the line limit.
• For new applications of the Facility, approval will be granted based on a satisfactory credit check and other validation of your information. A credit report provided by the TransUnion Limited will also be considered.
• Interest rate is a daily interest rate set by the Bank based on respective currency’s benchmark interest rate index. The reference rate may vary daily. For details, please visit the Bank’s branches or www.sc.com/hk. Interest accrues daily based on the outstanding loan amount and is calculated on the basis of a 365 day year (or a 366 day year in the case of a leap year) for loan in HKD/GBP/SGD and a 360 day year for loan in USD/EUR/JPY/AUD/NZD/CHF/CAD. Interest is charged to the overdraft account on the last day of each month.
• Outstanding loan amount
  The aggregate amount of all drawings/utilisations/interest charged/fees and other charges payable under the Facility outstanding at any time.
• Maximum Line Limit
  The Maximum Line Limit is the maximum overdraft amount permitted under the Facility which is determined by the Bank from time to time. If the aggregate outstanding loan amount exceeds the Maximum Line Limit, the Bank will have the right to require you to repay any outstanding loan amount exceeding the Maximum Line Limit within 45 days.
• Current Line Limit
  The Current Line Limit is the actual amount that you can borrow under the Facility and will be adjusted by the Bank according to the market value of the collateral and the respective Lending ratios. It is capped at the Maximum Line Limit which will be notified to you in the facility letter extending a Facility to you, if the Bank accepts your application. If the outstanding loan amount exceeds the Current Line Limit, the Bank will have the right to request you to provide additional collateral or to pay down any outstanding loan amount exceeding the Current Line Limit, or even the right to sell down the collateral in order to pay off the amount by which any outstanding loan amount exceeds the Current Line Limit.
• Lending ratios
  The Lending ratio of collaterals ranges from 0% to 85%. For instance, a Lending ratio of 85% means the Bank may lend up to 85% of the market value of the collateral. For each tier of Lending ratio, a Top-up ratio and a Sell-down ratio (both as detailed below) are assigned as follows
  _{(The ratio stated below are for illustrative purpose only and may not be actual ratios.)}

Not all collaterals are subject to the same Lending ratio. Please contact your Relationship Manager if you would like to know about the Lending ratio of each collateral. The Bank reserves the right to at any time review, reduce or otherwise vary the Maximum Line Limit, Current Line Limit, the Lending ratios, the Top up ratios and the Sell-down ratios in accordance with its internal credit policy and valuation methodologies, including without limitation:

• the value of any collateral that has been provided as security for the Facility
• the type of collateral that has been provided as security for the Facility
• the concentration of any particular type of collateral that has been provided as security of Facility

Where the Bank is of the view that the collateral that has been provided as security for the Facility is insufficient security for the outstanding loan amount under the Facility, the Bank has a right to require that you either provide additional eligible collateral or repay the outstanding loan amount (if any).

• Top-up ratio and Top-up threshold
  The Top-up ratio is the ratio (specified as a percentage assigned by the Bank) of the outstanding loan amount to the market value of a collateral. The Top-up threshold, in turn, is calculated by multiplying the market value of each collateral by its assigned Top-up ratio and aggregating each collateral’s amount. If the outstanding loan amount reaches or exceeds the Top-up threshold, the usage of the Facility will be suspended. You are required to provide additional collateral or to reduce the outstanding loan amount so that it is less than the Current Line Limit immediately. In accordance with the Bank’s rights under Terms and Conditions of InvestPower and the Memorandum of Charge On Assets, the Bank may (whether or not the Bank has notified you of such a decision) exercise its right to sell down your collateral as soon as practicable in such manner and order as the Bank may deem fit, to pay off the amount by which the outstanding loan amount exceeds the Current Line Limit.
• Sell-down ratio and Sell-down threshold
  The Sell-down ratio is the ratio (specified as a percentage assigned by the Bank) of the outstanding loan amount to the market value of a collateral. The Sell-down threshold, in turn, is calculated by multiplying the market value of each collateral by its assigned Sell-down ratio and aggregating each collateral’s amount. If your outstanding loan amount exceeds the Sell-down threshold, the Bank may (whether or not the Bank has notified you of such a decision) exercise its right to sell down your collateral as soon as practicable, in such manner and order as the Bank may deem fit, to pay off the amount by which the outstanding loan amount exceeds the Current Line Limit.
• Should there be any inconsistency or conflict between the English and Chinese versions, the English version shall prevail