CITIC Securities Company Limited (“CITIC Securities” or the “Company”) was established in October 1995 headquartered in Shenzhen. CITIC Securities focuses on providing high-quality securities related services to our customers, including securities trading, underwriting and sponsoring, proprietary trading, asset management and investment banking advisory services. CITIC Securities is China’s first full-service investment bank to have its A shares (SSE:600030) listed on the Shanghai Stock Exchange (SSE) and H shares (SEHK:6030) listed on the Main Board of The Stock Exchange of Hong Kong Limited (SEHK).
What is CITIC Securities？
Established in 1998 and registered in China Hong Kong, CITIC Securities Wealth Management (HK) serves as the Wealth Management Platform, offering a wide range of products customized to fulfill the investment requirements of clients. These encompass equities and futures trading, margin financing, bonds, funds, and investment advisory services, among others.
Regulation
CITIC Securities is presently licensed by the Securities and Futures Commission of Hong Kong (SFC), with license numbers BIG262 and AAE879.
Pros & Cons
CITIC Securities, regulated by the Securities and Futures Commission (SFC) in Hong Kong, offers a diverse array of tradable securities, providing clients with ample investment opportunities. The brokerage firm provides access to initial public offerings (IPOs), allowing clients to participate in new stock offerings. However, one notable drawback is the absence of support for forex trading, which may limit options for investors interested in currency markets. Furthermore, while CITIC Securities offers a range of securities for trading, it lacks live chat support, potentially impacting customer assistance and responsiveness. Additionally, the platform falls short in terms of educational content, which may hinder the ability of clients, especially novices, to make informed investment decisions.
Tradable Securities and Services
CITIC Securities offers a wide range of tradable securities and services, catering to diverse investment needs:
Securities: These include stock options, derivative warrants, exchange-traded funds (ETFs), callable bull/bear contracts (CBBCs), bonds (fixed income), real estate investment trusts (REITs), and inline warrants.
IPO Subscriptions: CITIC Securities Wealth Management (HK) provides clients with safe and straightforward trading services. Their ‘eIPO subscription service’ allows for cash or financing subscriptions via XeT International, the online trading platform iTrade, or a mobile app.
Grey Market Trading: The grey market is an over-the-counter market where new IPO issues are traded after normal trading hours, one business day before the official listing date. Unlike the HKEx matching system during regular trading hours, grey market transactions are matched by designated brokerage firms' systems.
Stock Options: Stock options are highly flexible financial derivatives that can be used in various market conditions for investment or risk management with leverage. CITIC Securities Wealth Management (HK) offers a clear, intuitive online stock options trading platform with competitive per-contract pricing and no hidden costs.
Algorithmic Trading: This involves the use of automated computer programs to execute trading activities based on predefined algorithms and technical market data.
Futures: CITIC Securities covers major global futures exchanges, including the Hong Kong Futures Exchange (HKIF), London Metal Exchange (LME), Chicago Mercantile Exchange (CME), New York Mercantile Exchange (NYMEX), and Singapore Exchange (SGX).
Commissions & Fees
Hong Kong Securities
CITIC Securities provides a suite of trade-related services for Hong Kong securities. The brokerage commission is set at 0.25% of the transaction amount, with a minimum charge of HK$100. Additionally, there is a stamp duty of 0.1% of the transaction amount, rounded up to the nearest dollar. Other fees include a transaction levy of 0.0027%, a trading fee of 0.00565%, and an AFRC transaction levy of 0.00015%, all based on the transaction amount.
Shanghai-Hong Kong Stock Connect (Northbound Trading)
CITIC Securities offers a detailed and transparent fee structure for Shanghai-Hong Kong Stock Connect (Northbound Trading). The brokerage commission is 0.2% of the transaction amount, with a minimum charge of CNY 80. The handling fee is 0.00341% of the transaction consideration per side, and 0.004% per side for ETFs. Additionally, there is a securities management fee of 0.002% of the transaction consideration per side. The transfer fee is 0.001% under ChinaClear and 0.002% under CCASS, both based on the transaction consideration per side. Lastly, a stamp duty of 0.05% of the transaction consideration is applicable to the seller.
Shenzhen-Hong Kong Stock Connect (Northbound Trading)
CITIC Securities provides a clear and detailed fee structure for Shenzhen-Hong Kong Stock Connect (Northbound Trading). The brokerage commission is 0.2% of the transaction amount, with a minimum charge of CNY 80. The handling fee is 0.00341% of the transaction consideration per side, and 0.004% per side for ETFs. Additionally, there is a securities management fee of 0.002% of the transaction consideration per side. The transfer fee is 0.001% under ChinaClear and 0.002% under CCASS, both based on the transaction consideration per side. Lastly, a stamp duty of 0.05% of the transaction consideration is applicable to the seller.
China B Share
CITIC Securities offers a transparent and detailed fee structure for trading China B Shares in both the Shanghai and Shenzhen markets.
For Shanghai B Shares, the brokerage commission is 0.35% of the transaction amount, with a minimum charge of USD 20. The stamp duty is 0.05% of the transaction amount, applicable only to sale trades. Additionally, there is a transaction levy of 0.00541% of the transaction amount, which includes a securities management fee of 0.002%. The clearing fee is 0.002% of the transaction amount, with a maximum charge of HKD 500.
For Shenzhen B Shares, the brokerage commission is 0.35% of the transaction amount, with a minimum charge of HKD 150. The stamp duty is 0.05% of the transaction amount, applicable only to sale trades. The transaction levy is 0.00541% of the transaction amount, including a securities management fee of 0.002%. The clearing fee is 0.002% of the transaction amount, with a maximum charge of USD 50 or HKD 500.
Promotions
CITIC Securities offers promotions for online account opening, IPO subscriptions, and eDDA electronic direct debit authorization.
Account Types
CITIC Securities provides a range of account types tailored to accommodate diverse investment needs. These include Cash Accounts with and without custody services, Margin Accounts, and Futures & Options Accounts, which are opened with CITIC Securities Futures (HK) Limited.
Platforms
CITIC Securities offers robust trading platforms designed to meet the needs of various investors through XeT International, the online trading platform iTrade, and a general version mobile app.
Deposit & Withdrawal
CITIC Securities facilitates fund deposits through various channels:
Bill Payment: Clients can deposit funds via electronic bill payment services offered by HSBC or Hang Seng Bank. They need to pre-register their 10-digit securities/futures account number with the banks and inform their designated Account Executive/Salesperson upon deposit, providing proof such as an online transaction record screenshot.
Bank Transfer Service and Faster Payment System (FPS): Deposits made through E-banking, Bank Counter, ATM, Cheque, or FPS require clients to submit deposit instructions on iTrade or TDX. Alternatively, they can inform their designated Account Executive/Salesperson, also providing proof of deposit such as an online transaction record screenshot, bank pay-in slip, cheque copy, or statement displaying full name, account number, and deposit details.
CITIC Securities provides two methods for fund withdrawals:
Bank Transfer Services: Clients can transfer their funds to pre-registered HKD bank accounts in Hong Kong via Bank Transfer services. Clients have the flexibility to register multiple pre-registered HKD bank accounts for withdrawals. They can contact their Account Executive/Salesperson for registration assistance.
【HKD Bank Transfer Schedule】
Cheque Withdrawal: Alternatively, clients have the option to withdraw funds by cheque, which can be deposited into their Hong Kong bank account.
【CHEQUE Withdrawal Cut-off】
CITIC Securities facilitates stock deposit and withdrawal through various methods:
Physical Stock Deposit: Clients can deliver physical stocks to CITIC Securities Brokerage (HK) Limited Main Branch in person and complete the “Client Instruction” form. Deposited physical stocks are subject to acceptance by the Central Clearing and Settlement System (CCASS) and/or the Share Registrar.
Physical Stock Withdrawal: Clients need to fill in the “Client Instruction” form. Upon notification, clients can collect and confirm the receipt of physical stocks in person at CITIC Securities Brokerage (HK) Limited Main Branch.
Electronic Transfer: Stock transfers from other brokers/custodians require clients to complete the “CCASS Settlement Instruction / Investor Settlement Instruction Form.” Stocks will be deposited into the client's account upon receipt from the broker/custodian through CCASS. For transfers to other brokers/custodians, clients need to fill in the “CCASS Settlement Instruction / Investor Settlement Instruction Form,” and stocks will be withdrawn from their account for transfer through CCASS.
Customer Service
CITIC Securities provides customer support through various channels to cater to the diverse needs of its clients. For general enquiries, clients can reach out via email atcsi-callcentre@citics.com.hk or through the telephone switchboard at +852-2237-6899 during regular business hours from Monday to Friday. Additionally, there are dedicated hotlines available for clients in Hong Kong (+852-2237-9338) and China (400-818-0338), along with a night shift dealing support hotline at +852-2237-9466. Fax services are also available at +852-2104-6862 for general inquiries and +852-2845-0151 for account executive-related matters.
In case of complaints regarding CITIC Securities' services, clients are encouraged to contact the company via email at csiwmcomplaint@citics.com.hk or through dedicated hotlines in Hong Kong (+852-2237-6819) and China (400-818-0368). Fax services for complaints are available at +852-2104-6455. CITIC Securities requests clients to provide detailed information outlining the facts of their case, concerns, suggestions, and contact details to facilitate a prompt review of the matter.
If clients remain dissatisfied with the response from CITIC Securities, they have the option to seek assistance from the Financial Dispute Resolution Center (FDRC) via email at fdrc@fdrc.org.hk or by calling +852-3199-5100.
Conclusion
Overall, CITIC Securities offers a wide range of tradable securities and access to IPOs, regulated by the Securities and Futures Commission (SFC) in Hong Kong. However, it lacks support for forex trading and live chat, and its educational content is limited.
FAQs
Q: Is CITIC Securities a safe and reliable brokerage？
A: CITIC Securities is a regulated brokerage, providing investor protection in the event of brokerage failure. They employ security measures such as two-factor authentication. However, it is advisable to exercise extra vigilance when trading with any online brokerage.
Q: Does CITIC Securities offer commission-free trading？
A: No, CITIC Securities charges brokerage commissions based on the transaction amount. The commission rates vary depending on the type of transaction, with minimum charges specified accordingly.
Q: What kind of trading platform does CITIC Securities offer？
A: CITIC Securities offers robust trading platforms to cater to diverse investor needs. These include XeT International, the online trading platform iTrade, and a general version mobile app.
Q: Is CITIC Securities suitable for beginners？
A: CITIC Securities' user-friendly interface can be beneficial for beginners. However, it is worth noting that the platform may lack comprehensive educational resources to support novice traders.
Risk Warning
Engaging in online trading poses significant risks, including the potential loss of invested funds, which may not be suitable for all traders or investors. It is essential to thoroughly understand these risks before participating in trading activities. Moreover, please note that the content of this review may change to reflect updates in the company's services and policies. The creation date of this review is also pertinent, as information could become outdated over time. Therefore, readers are advised to verify the most up-to-date information directly from the company before making any investment decisions. Ultimately, the reader assumes sole responsibility for acting upon the information contained in this document.
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