Mysterious HSBC scrip fee

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  1. #1

    Join Date
    Mar 2010
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    Mysterious HSBC scrip fee

    Got three letters from HSBC outlining scrip charges. I'm a bit confused as to what i'm being charged for. All three for Chinese banks (H-Shares).

    The gist (for CCB):

    ------
    WE TODAY DEBITED YOUR ACCOUNT xxxx WITH HKD 75.00 BEING SCRIP FEE ON

    BOARD LOT SIZE: 1,000

    SHS 50,000 MADE UP AS FOLLOWS:
    PRESENT HOLDINGS : SHS 50,000
    LESS PREVIOUS HOLDINGS : SHS 0
    (BOOK CLOSED DATE 23FEB2018)

    NET INCREASE OF SHARES ARE SHS: 50,000
    NET INCREASE OF BOARD LOT ARE: 50
    ------

    I gather the ex-date passed in July, whereas I bought these shares in June so should be eligible for cash dividend. However with my other shares I just get a notice after the fact, with a summary of amount credited minus HSBC commission (the usual 0.5%).

    For these H-Shares ... they've already debited a scrip fee, whereas dividend is payable early August. Also i'm expecting cash and not scrip (unless i'm mistaken).

    With the summary above... sure, net increase of board lots is 50 but that's because I purchased them!! And of course that means i've already paid the associated fees at the time of purchase.

    Any ideas what this $75 is for? ($225 / $150 for the other two).


  2. #2

    Join Date
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    2.5 per board lot. If you lookup their charges, there are a couple of instances where they charge this fee.

    Sorry, but I am not on a desktop to look it up.


  3. #3

    Join Date
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    Thanks. So within HSBC commercial tariffs:

    Name:  HSBC Scrip Fees.jpeg
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    - which explains the $75 charge for my 50 lots.

    Footnote 8 further explains:

    8. The scrip fee will be calculated with reference to the net increase in board lots (rounded up to the next board lot) since the previous book-close date on which fee was last collected by HKSCC for each security held in account. Net decrease in the number of board lots held in specific lines-of- stocks will not incur fee.
    However i'm still none the wiser. Why only these stocks?

    And charging for a net increase that is the result of a purchase?? Is this just because I bought shares between book closing / announcement and the ex-date?

  4. #4

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    Will have a look at some of my purchases. If the patten is right, ICBC should have some similar charges