What is Unified Purchasing Power

Unified Purchasing Power refers to the available purchasing power calculated by aggregating the balances of different currencies and/or stock holding values in your Changjiang Securities account after assessment. When placing orders, you may trade Hong Kong and US stocks across markets using Unified Purchasing Power without prior currency conversion, even if your available cash balance for the target market is insufficient.

When you conduct securities trading:

A. If you do not hold the currency required for the target market in your securities account, you do not need to convert currencies in advance. You can use Unified Purchasing Power to trade Hong Kong and US stocks across markets.

B. If your available cash balance of the target market currency is insufficient, you do not need to convert currencies beforehand. You may use Unified Purchasing Power to purchase Hong Kong and US stocks across markets.

In cash securities accounts, Unified Purchasing Power is calculated by evaluating the total value of all multi-currency balances held in the account to determine the usable purchasing power.

In margin securities accounts, Unified Purchasing Power is derived from the aggregated value of all multi-currency balances plus stock collateral values (only Hong Kong stocks are eligible for collateral valuation for the time being). The system conducts unified assessment to work out the available purchasing power.

Yes. To ensure smooth settlement of your transactions, our company provides automatic currency exchange service on settlement date, unless you hold sufficient corresponding currency balance in your account on that day.

• HKD negative balance: First convert from USD, then from CNY.

• USD negative balance: First convert from HKD, then from CNY.

• CNY negative balance: Since sufficient CNY balance is required to place orders for China A-shares, please contact our customer service in advance to apply for CNY currency conversion before placing trades.

Such situations may occur amid sharp exchange rate fluctuations, resulting in negative currency balances after settlement and incurring interest charges. Clients may deposit sufficient funds as soon as possible on the settlement date to minimize interest expenses.

No application is required. All clients of Changjiang Securities are eligible to use the Unified Purchasing Power service. If you prefer not to purchase securities exceeding your held currency balance, please take your cash balance of the relevant currency as the maximum investment limit for that market.

Yes. Clients may deposit sufficient settlement currency before 4 p.m. on the business day prior to the settlement date, so that the automatic currency exchange service will not be needed on the settlement date.

• Foreign Exchange Risk: There are several days between the trading date and settlement date, including non-business days due to holidays. Sharp exchange rate fluctuations may lead to depreciation of your original currency holdings, which could raise the conversion cost when you need to exchange currencies for settlement.

• Interest Risk: Dramatic exchange rate swings may result in currency conversion amounts exceeding your available balance on the settlement date, causing negative currency balances and incurring relevant interest charges.

• Financing Risk: For margin securities accounts, Unified Purchasing Power includes stock collateral values. Price fluctuations of eligible collateral stocks may easily trigger margin calls. Clients shall promptly deposit sufficient funds or sell part of their securities to maintain adequate collateral levels.

Our company calculates financing interest daily based on the outstanding debts incurred in the account. Details are as follows:

* Our company uses HSBC’s prime rate for calculation purposes.

No. Clients must hold sufficient RMB to place orders for securities traded via Northbound Stock Connect. Even if you have adequate balances in other currencies in your account, you cannot use Unified Purchasing Power to purchase such securities. Therefore, please contact our customer service in advance to apply for RMB currency conversion before placing relevant orders.