Hong Kong Exchanges and Clearing Limited (HKEx) is presenting a promotional campaign on the Stock Segregated Account with Statement Service to help familiarise investors with the service. A series of seminars will be held at brokers' and custodians' offices to introduce the service to investors and open accounts for them on-site. Leaflets and educational articles featuring the benefits and characteristics of the Stock Segregated Account will also be published.

Introduced by Hong Kong Securities Clearing Limited (HKSCC), a wholly-owned subsidiary of HKEx, the Stock Segregated Account is designed to enable investors to reconcile their stockholdings and trading records kept by their brokers or custodians with statements issued by HKSCC. Investors who have opened a Stock Segregated Account receive a Daily Movement Statement on days when there have been stock movements in the account. They also receive a Monthly Balance Statement showing the closing balance at the end of the month of each stock in the account, including zero balances. These statements, together with account statements issued by their brokers or custodians, help investors keep track of their stockholdings and stock movements.

HKSCC is also introducing new features to the Stock Segregated Account. HKSCC will now mail statements to addresses outside Hong Kong. Previously, statements were only mailed to addresses in Hong Kong. In addition, brokers or custodians can now use computer diskettes and CD ROM to send completed application details to HKSCC for processing. The use of computer diskettes and CD ROM improves Central Clearing And Settlement System (CCASS) Participants' operational efficiency, especially when a large number of application forms are submitted at one time.

The Stock Segregated Account provides many advantages to investors that include:

Investors should note that Stock Segregated Accounts do not change the custodial relationship between them and brokers or custodians. Brokers or custodians who sponsor a Stock Segregated Account continue to have full authority and control over that Stock Segregated Account.  Investors using the service are not recognised as CCASS Participants nor as direct holders of Stock Segregated Accounts and should continue to forward voting, subscriptions and other corporate instructions through their brokers or custodians.

Investors who are interested in opening a Stock Segregated Account should apply through a broker or custodian that is a CCASS Participant. A Stock Segregated Account will normally be opened on the business day following HKSCC's receipt of an application from a broker or custodian.

HKSCC collects a monthly handling charge of $10 from brokers or custodians for each Stock Segregated Account but it is at their discretion whether to seek to recover the cost from investors.

Besides the Stock Segregated Account, investors may choose to open an Investor Account with HKSCC. An Investor Account is in effect a depository account for share custody that gives investors better legal protection of their stockholdings.  An Investor Account enables investors to control movements of their shares deposited in CCASS and receive evidence of their shareholdings in CCASS. Account holders are also able to receive corporate information directly from listed issuers.

Further information on the Stock Segregated Account and the Investor Account is available under the Services section of HKEx website at www.hkex.com.hk.