Stock Segregated Account with Statement Service

Given the unpopularity of Investor Participant (IP) Account, HKEx has instead enhanced the Stock Segregagted Account (SSA) with Statement Service. I think this is a right direction. Investors may not want handle stock settlement directly, but at least they know the stock movement in their accounts on a timely basis.

Under the enhanced service, brokers & custodians can open and maintain an SSA for their clients online through CCASS terminals, where the user ID and password are generated. Afterwards investors can check share movements and the balance in the account electronically through the CCASS Phone System and CCASS Internet System. They may also request CCASS to alert them via SMS or email when there is share movement in the SSA.

Further service enhancement in the following areas will be introduced in the middle of 2007:

• Investors will enjoy an electronic voting service through the CCASS Phone System and CCASS Internet System.
• Investors will be able to demand affirmation of share movements initiated by their brokers or custodians.
• Investors will be able to use the CCASS money settlement service.
• HKEx will increase the maximum no. of SSAs it allows each broker or custodian to maintain.

With more advanced technology, stock investing would further become a self-service.