Overview of ChaoShang
ChaoShang, established in 2015 in Hong Kong, operates under the regulation of the Securities and Futures Commission of Hong Kong (SFCHK). It offers a variety of market instruments including securities, futures/options, and asset management for both individual and corporate clients through its Personal/Joint and Corporate Account types.
The platform provides web-based and mobile trading options, ensuring accessibility and convenience. Customer support is available via multiple channels including mail, fax, email, and phone. ChaoShang facilitates deposits and withdrawals through various methods like bank transfers and cheques.
Is ChaoShang legit or a scam？
ChaoShang operates under the regulation of the Securities and Futures Commission of Hong Kong, with two distinct licenses that shape its trading environment. ChaoShang Securities Limited, with license number BGH629, is authorized for dealing in futures contracts since 2016-05-12. Additionally, ChaoShang Asset Management Limited, holding license number BIY456, is licensed for advising on securities since 2017-04-03. This dual regulatory status ensures that ChaoShang adheres to stringent standards and compliance protocols set by the Hong Kong authority.
Pros and Cons
Pros:
Wide Range of Services: ChaoShang offers a variety of trading services including securities, futures/options, and asset management.
Flexible Platforms: The availability of both mobile and web-based platforms provides users with the flexibility to trade according to their convenience.
Regulatory Compliance: Regulation by the SFCHK adds a level of reliability and trust to the platform's operations.
Diverse Payment Options: The platform supports multiple payment and deposit methods, making transactions convenient for users.
Cons:
Educational Resources: ChaoShang has limited educational materials, which do not sufficiently support new traders.
Brokerage Fees: The fee structure is competitive for all user groups, potentially affecting cost efficiency for some traders.
Geographical Limitations: Services are not available in certain countries or regions, limiting accessibility for some potential users.
Market Instruments
ChaoShang offers three primary services, which are Securities Business,Futures/Options, Asset Management.
Securities Business: ChaoShang offers a broad spectrum of securities trading services. This includes Hong Kong stocks, providing clients access to one of Asia's most dynamic stock markets. The platform also facilitates global securities trading, allowing investors to diversify their portfolios with international stocks. Additionally, ChaoShang supports the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, enabling cross-border trading and access to Mainland Chinese markets.
Futures/Options: ChaoShang provides futures trading services with a focus on Hong Kong futures.The platform also extends its services to global futures, offering opportunities to trade in various international futures markets.
Asset Management: In the realm of asset management, ChaoShang conducts comprehensive asset management business. This includes fund management and advisory services. The platform also offers tailored wealth management services through specialized accounts, focusing on personalized investment solutions for individual client needs.
Account Types
The account types at ChaoShang include Personal/Joint Accounts and Corporate Accounts.
Personal/Joint Account: This account type is suitable for individual investors or a group of investors (joint account holders). It serves those who intend to manage personal investments in securities. This type of account is ideal for retail investors who are looking for a straightforward way to trade and invest in the market, either alone or with a partner.
Corporate Account: Designed for businesses and organizations, the Corporate Account is suitable for entities looking to invest in securities as part of their corporate strategy or treasury management. This account type is more appropriate for institutional investors or companies with a more complex set of investment needs and larger transaction volumes.
How to Open an Account？
To open an account with ChaoShang, follow these steps:
Prepare Three Documents: Valid identity proof (like ID card, passport, or pass), a recent (within 3 months) address proof (like utility or bank statements), and your Hong Kong bank account number.
Fill Out Two Forms: Complete the 'Personal or Joint Account Opening Form' and the 'W8 Application Form'.
Choose a Submission Method: You can either visit ChaoShang in person, mail via cheque, or mail with a witness (ChaoShang can introduce a witness).
In-Person Account Opening: Bring the prepared documents to ChaoShang's office in Hong Kong.
Mailing via Cheque: Mail the completed investment application form, identity proof, address proof, and a HK$10,000 cheque from a Hong Kong bank.
Mailing with a Witness: Have a witness (like a bank manager, lawyer, or notary) validate your documents and then mail them to ChaoShang.
Spreads & Commissions
For trading Hong Kong stocks with ChaoShang, the brokerage commission is set at 0.25% of the transaction amount. The commission structure includes a minimum fee of HK$100 per transaction. This means that for every trade of Hong Kong stocks, the cost to the trader will be at least HK$100 or 0.25% of the total transaction amount, whichever is higher.
Trading Hong Kong stocks on ChaoShang incurs various transaction fees in addition to brokerage commissions. These fees include a government stamp duty of 0.1% of the transaction amount (rounded up to the nearest Hong Kong dollar if less than one dollar), a transaction levy of 0.0027% payable to the Securities and Futures Commission, a trading fee of 0.005% payable to the Hong Kong Stock Exchange, and a settlement fee of 0.005% of the transaction amount (with a minimum of HKD 5 and a maximum of HKD 100). The Investor Compensation Levy is 0.002% of the transaction amount, but it has been waived since December 19, 2005. These fees are standard across account types and affect all users trading Hong Kong stocks, irrespective of their trading frequency or volume.
Trading Platform
ChaoShang offers two versions of its trading system: a web-based version and a mobile application version, named ChaoShang Securities (Ayers). The web-based platform provides online trading services accessible via a browser, suitable for desktop and laptop users. In contrast, the mobile version, ChaoShang Securities (Ayers), is designed for trading on mobile devices, offering flexibility and convenience for trading on the go. Both versions are part of ChaoShang's suite of financial control systems, suitable for different user preferences and device accessibility.
Deposit & Withdrawal
ChaoShang offers several methods for depositing funds:
Counter Services in Hong Kong: Clients can deposit funds at Hong Kong counters.
Online Financial Management in Hong Kong: Deposits can be made through online banking platforms.
Cheque Deposit Machines in Hong Kong: Clients can use these machines for depositing cheques.
Telegraphic Transfer or Chats: This method is available for electronic fund transfers.
Clients should send the deposit receipt via fax, email, online trading platform, or by calling the customer service hotline, clearly stating their ChaoShang client number and name. The cutoff time for processing deposit notifications is 4:00 PM each trading day. Any deposit received after 4:00 PM is considered for the next working day. Bank fees, if applicable, are deducted from the deposited amount.
For withdrawals, clients can use the online trading platform, call the customer service department, or use fax. The cutoff time for withdrawal notifications is 11:00 AM, with same-day processing. Withdrawals via cheque are free and must be deposited into the client's designated local bank account. For telegraphic transfers to overseas accounts, a fee of HKD 300 is charged, plus any fees from the receiving bank.
Customer Support
ChaoShang Securities Limited offers multiple channels for customer support. Clients can contact the company through traditional mail by sending correspondence to their office at Room 2206-2210, China Resources Building, 26 Harbour Road, Wan Chai, Hong Kong. Additionally, they provide a fax number, (852) 2152 0878, for fax communications. For email inquiries, customers can reach out to cs@chaoshangsec.com. The company also has a contact number, (852) 3899 2599, for direct phone communication. Furthermore, for trading instructions or account queries, clients are advised to contact their assigned brokers at ChaoShang.
Conclusion
ChaoShang offers a range of services in securities, futures/options, and asset management, supported by mobile and web-based trading platforms. This diversity and flexibility are advantageous for various types of investors. Additionally, being regulated by the SFCHK enhances its reliability.
On the downside, ChaoShang's limited educational resources hinder new traders in understanding and utilizing the platform effectively. The brokerage fee structure is appeal to all users, potentially impacting cost efficiency. Moreover, the platform's unavailability in some regions restricts its accessibility for a global user base.
FAQs
Q: What types of trading services does ChaoShang offer？
A: ChaoShang offers trading in securities, futures/options, and asset management services.
Q: Are there mobile trading options available with ChaoShang？
A: Yes, ChaoShang provides both mobile and web-based trading platforms.
Q: What regulatory body oversees ChaoShang's operations？
A: ChaoShang is regulated by the Securities and Futures Commission of Hong Kong (SFCHK).
Q: Does ChaoShang provide educational resources for traders？
A: ChaoShang has limited educational resources available for traders.
Q: What are the brokerage fee rates at ChaoShang？
A: ChaoShang's brokerage fees are set at 0.25% of the transaction amount with a minimum charge of HK$100.
