
<p>Since introducing the Faster Payment System (FPS) by the Hong Kong Monetary Authority, interbank transfers have become faster, easier, and free of charge. Besides transferring money to friends or merchants, the FPS can also be used for bill payments, topping up digital wallets, and locating card numbers.</p>



<p>Need help with how to use FPS? Want to understand more about its functions? Wondering what to do if you can’t receive money through FPS? Read this tutorial immediately for a comprehensive understanding of FPS.</p>



<h2 class="wp-block-heading">Latest: Hong Kong&#8217;s FPS Soon to Connect with Thailand&#8217;s PromptPay</h2>



<p>The Monetary Authority has announced that Faster Payment System (FPS) will be connected to Thailand&#8217;s similar real-time transfer service &#8220;PromptPay&#8221; on December 4, 2023. Once this connection is established, Hong Kong residents traveling in Thailand will be able to use the FPS feature of their Hong Kong bank accounts or e-wallets such as PayMe and Octopus to link with PromptPay. This will allow for quick payments by exchanging Hong Kong dollars for Thai Baht.</p>



<p>HSBC Bank will act as the agent bank for FPS cross-border payments to Thailand, determining the exchange rate from Hong Kong dollars to Thai Baht via FPS. The participating banks and e-wallets will determine the actual fees.</p>



<p>At the same time, Thai tourists can also make payments in Hong Kong using PromptPay. However, there are currently only about 50,000 merchants in Hong Kong that accept payments through FPS.</p>



<h3 class="wp-block-heading">🇹🇭More about PromptPay </h3>



<p>PromptPay is a very popular payment service in Thailand. It supports transactions using mobile numbers, Thai ID numbers, and QR codes, offering an experience similar to FPS. However, its acceptance among merchants far surpasses that of FPS. In Hong Kong, FPS is commonly used for P2P transactions but is less commonly used for shopping. In contrast, in Thailand, most merchants, be they large businesses or small market stalls, accept PromptPay payments.</p>



<p>As for the specific payment procedures, exchange rates, and fee details for connecting FPS with PromptPay, these are still to be announced. Drawing from the current user experience of PromptPay, it is anticipated that Hong Kong residents in Thailand will be able to make payments quickly by scanning a merchant&#8217;s QR code or using a mobile number, just like locals, which is expected to be easily adopted by Hong Kong tourists.</p>



<h2 class="wp-block-heading">What is Faster Payment System (FPS)?</h2>



<p>The Hong Kong Monetary Authority introduced the &#8220;Faster Payment System (FPS)&#8221; in 2018. The FPS is a real-time online transfer and payment system that connects Hong Kong banks, with features including:</p>



<ul>
<li>Operating 24/7, instant processing of transfers and payments</li>



<li>Supports both Hong Kong dollars and Chinese yuan</li>



<li>Transfer money between different banks and digital wallets</li>



<li>Suitable for P2P transfers, transfers to merchants, payment of government bills, etc.</li>



<li>Use eDDA to link to digital wallets, virtual bank accounts, securities accounts, and other services and quickly transfer funds between different accounts or set up automatic transfers.</li>
</ul>



<h2 class="wp-block-heading">How to Register for Faster Payment System (FPS)</h2>



<p>Major banks in Hong Kong, such as HSBC, Standard Chartered, Bank of China, as well as livi bank and ZA Bank, all have Faster Payment System features; digital wallets like Octopus, AliPay HK, WeChat Pay HK, PayMe, etc., can also activate and link to FPS.</p>



<p>The methods to register for FPS in major banks and digital wallets are similar. You can register for the FPS service via your mobile phone number, email address, Hong Kong ID, or Faster Payment System Identifier (FPS ID). Registering with a mobile phone number will receive a confirmation SMS; if you register using other methods, you will receive an email notification.</p>



<h2 class="wp-block-heading">FPS Default Receiving Account</h2>



<p>When registering for the FPS, you can designate one of your accounts as the default receiving account for your mobile phone number, email address, or identity card number.</p>



<p>For example, if you register the FPS service with HSBC and Bank of China using your mobile phone number but set HSBC as your default receipt account, then whenever anyone makes a transfer using your mobile phone number through the FPS, if they do not specify a receiving bank, the funds will be deposited into your HSBC account.</p>



<figure class="wp-block-image size-large is-resized"><img decoding="async" src="https://d3pwh2ime6p0el.cloudfront.net/wp-content/uploads/2023/06/image-473x1024.png" alt="" class="wp-image-29739" width="237" height="512" srcset="https://d3pwh2ime6p0el.cloudfront.net/wp-content/uploads/2023/06/image-473x1024.png 473w, https://d3pwh2ime6p0el.cloudfront.net/wp-content/uploads/2023/06/image-139x300.png 139w, https://d3pwh2ime6p0el.cloudfront.net/wp-content/uploads/2023/06/image-768x1663.png 768w, https://d3pwh2ime6p0el.cloudfront.net/wp-content/uploads/2023/06/image-709x1536.png 709w, https://d3pwh2ime6p0el.cloudfront.net/wp-content/uploads/2023/06/image-946x2048.png 946w, https://d3pwh2ime6p0el.cloudfront.net/wp-content/uploads/2023/06/image.png 1125w" sizes="(max-width: 237px) 100vw, 237px" /><figcaption class="wp-element-caption"><em>▲Bank customers can set the FPS’s transfer limit via online or mobile banking.</em></figcaption></figure>



<h2 class="wp-block-heading">Setting Transfer Limits for FPS</h2>



<p>FPS allows users to set limits restricting the maximum amount a user can transfer to strike a balance between convenience and financial security. There are no uniform standards for FPS transfer limits among banks. Each bank allows customers to customize their transfer limits in different ways. These typically fall into the following categories:</p>



<ul>
<li><strong>Daily Limit for Small Transfers:</strong> Small transfers is FPS’s most commonly used P2P transfer function. It refers to quick transfers that do not require additional identity verification. Most banks set the FPS small transfer limit at HK$10,000, but you can adjust this to a lower amount.</li>



<li><strong>Daily Limit for Registered Payees:</strong> You can set a higher daily transfer limit for frequently used payees. The bank sets the upper limit and generally can reach HK$1 million to HK$1.5 million.</li>



<li><strong>Daily Total Limit for Non-registered Payees:</strong> The daily transfer limit for non-registered payees is lower, usually from HK$200,000 to HK$500,000.</li>
</ul>



<p>In addition, some banks allow customers to set transfer limits for merchant transactions and the total limit for each category of transfers. Most banks provide more detailed transfer limit setting functions on their online banking accounts, while mobile app transfer limit settings are more straightforward. Each bank or e-wallet has different methods for setting limits, so if you’re unsure about something, don’t forget to ask the bank customer service.</p>



<h2 class="wp-block-heading">How to make a transfer with FPS?</h2>



<p>Using FPS to transfer funds is straightforward; most people should be able to do it quickly. Here are the main steps:</p>



<ol>
<li>Enter the payee’s information (mobile phone number/email/account number / FPS ID).</li>



<li>Enter the transfer amount and currency. If needed, you can set the transfer time and frequency (for example, you can set up a monthly transfer to a specific account) and add note information.</li>



<li>Verify the information and confirm to complete the transfer.</li>
</ol>



<figure class="wp-block-image size-large is-resized"><img decoding="async" src="https://d3pwh2ime6p0el.cloudfront.net/wp-content/uploads/2023/06/image-1-473x1024.jpg" alt="" class="wp-image-29740" width="237" height="512" srcset="https://d3pwh2ime6p0el.cloudfront.net/wp-content/uploads/2023/06/image-1-473x1024.jpg 473w, https://d3pwh2ime6p0el.cloudfront.net/wp-content/uploads/2023/06/image-1-139x300.jpg 139w, https://d3pwh2ime6p0el.cloudfront.net/wp-content/uploads/2023/06/image-1-768x1662.jpg 768w, https://d3pwh2ime6p0el.cloudfront.net/wp-content/uploads/2023/06/image-1-710x1536.jpg 710w, https://d3pwh2ime6p0el.cloudfront.net/wp-content/uploads/2023/06/image-1.jpg 887w" sizes="(max-width: 237px) 100vw, 237px" /><figcaption class="wp-element-caption"><em>▲The image above shows the user interface of livi bank.</em></figcaption></figure>



<h2 class="wp-block-heading">How to Use FPS QR Code for Payments or Receiving Money?</h2>



<p>FPS has a QR code feature for payments and receipts, which can be used for P2P transfers and bill payments. Here are the steps:</p>



<ol>
<li>Generate an FPS QR code from a mobile app that supports the FPS QR code (or obtain the QR code from a bill).</li>



<li>The payer scans the QR code.</li>



<li>The payer enters the payment amount and details and completes the payment.</li>
</ol>



<h2 class="wp-block-heading">How to use FPS for Paying Credit Card Balance?</h2>



<p>FPS can be used for bill payments and credit card balance payments. It can be used in ICBC Asia, Hang Seng, ZA Bank, livi bank, etc. You only need to register your credit card bill on the payment page, and you can make interbank credit card balance repayments.</p>



<p>However, please note that the issuing bank may need to wait one or two days to confirm the receipt of payment, so making interbank credit card repayments earlier is recommended.</p>



<h2 class="wp-block-heading">Using FPS to Register for Direct Debit (Automatic Transfer)</h2>



<p>FPS has an “Electronic Direct Debit Authorization” (eDDA) feature that lets your specified service provider debit your bank account directly.</p>



<p>You can use eDDA to link your e-wallet (such as Octopus and PayMe), virtual bank (such as livi bank), and or securities accounts (such as Futu Securities) to your traditional bank account under your name. Then, you can directly withdraw funds from the bank account on the mobile app of the above services.</p>



<p>Another everyday use of eDDA is to set up automatic transfers to pay public utilities, tuition fees, and other bills. The main difference from traditional automatic transfer services is that customers can complete the application entirely on online banking or mobile apps without filling out forms and queueing at the bank counter.</p>



<h2 class="wp-block-heading">FAQ About FPS</h2>



<div class="schema-faq wp-block-yoast-faq-block"><div class="schema-faq-section" id="faq-question-1686932021077"><strong class="schema-faq-question">What is the FPS transfer limit?</strong> <p class="schema-faq-answer">There is no uniform limit for FPS. For most banks, the small transfer limit is HK$10,000; the limit for unregistered payees generally does not exceed HK$500,000; the transfer limit for registered payees varies from HK$1 million to HK$1.5 million, and customers can set their transfer limits for different payee categories.</p> </div> <div class="schema-faq-section" id="faq-question-1686932034609"><strong class="schema-faq-question">What if I can’t receive money with FPS?</strong> <p class="schema-faq-answer">Under normal circumstances, FPS can realize immediate transfers and the payee will usually receive the transfer notification within a few seconds. If the other party claims they can’t receive the money, you should first check whether the payee information you entered is incorrect.<br/><br/>In addition, as one phone number or email can be linked to multiple FPS accounts, the payee should also check whether the funds have been deposited into other accounts under their name. If the problem persists after verifying the information, you should immediately contact the bank for assistance.</p> </div> <div class="schema-faq-section" id="faq-question-1686932044740"><strong class="schema-faq-question">Does FPS have a handling fee?</strong> <p class="schema-faq-answer">Personal bank account customers generally won’t be charged for using FPS; business bank accounts might incur charges.</p> </div> <div class="schema-faq-section" id="faq-question-1686932061464"><strong class="schema-faq-question">Does PayPal support FPS?</strong> <p class="schema-faq-answer">PayPal currently does not support the FPS.</p> </div> <div class="schema-faq-section" id="faq-question-1686932071009"><strong class="schema-faq-question">Does the Jockey Club account support FPS?</strong> <p class="schema-faq-answer">The Hong Kong Jockey Club’s online betting account supports immediate transfers via FPS; once successfully registered, you can instantly deposit and transfer between the specified bank account and the betting account.</p> </div> </div>


There is no uniform limit for FPS. For most banks, the small transfer limit is HK$10,000; the limit for unregistered payees generally does not exceed HK$500,000; the transfer limit for registered payees varies from HK$1 million to HK$1.5 million, and customers can set their transfer limits for different payee categories.

What is the FPS transfer limit?

Under normal circumstances, FPS can realize immediate transfers and the payee will usually receive the transfer notification within a few seconds. If the other party claims they can’t receive the money, you should first check whether the payee information you entered is incorrect.<br/><br/>In addition, as one phone number or email can be linked to multiple FPS accounts, the payee should also check whether the funds have been deposited into other accounts under their name. If the problem persists after verifying the information, you should immediately contact the bank for assistance.

What if I can’t receive money with FPS?

Personal bank account customers generally won’t be charged for using FPS; business bank accounts might incur charges.

Does FPS have a handling fee?

PayPal currently does not support the FPS.

Does PayPal support FPS?

The Hong Kong Jockey Club’s online betting account supports immediate transfers via FPS; once successfully registered, you can instantly deposit and transfer between the specified bank account and the betting account.

Does the Jockey Club account support FPS?

Explore the complete guide to using the Faster Payment System (FPS). Learn registration, setting limits, handling fees, and troubleshooting tips.

FPS User Guide: Registration, Limits, Fees, Troubleshooting


<p>Navigating countless fund options often requires investors to invest significant time in detailed product analysis and selection. As Asia&#8217;s leading online wealth management platform, Endowus introduces a novel user experience, pioneering an operating model that forgoes sales commissions. With their proprietary “SMART+ framework” for fund selection, Endowus provides users with fair, reasonable costs and professional investment choices.&nbsp;</p>



<p>As one of the largest independent wealth management companies in Asia, Endowus currently manages assets totaling over US$5 billion (HK$39.0 billion), offering its clients institutional-grade investment opportunities and benefiting from institutional-grade fund fees and zero subscription charges.&nbsp;</p>



<p>Catering to diverse investment objectives, Endowus created the <a href="https://endowus.com/en-hk/investment-funds-list?utm_source=braze&amp;utm_medium=email&amp;utm_campaign=20230808_MKT_PlantoEndowusEN&amp;utm_content=fundsmart">“Fund Smart” platform</a>, selecting over 200 high-quality funds from thousands, spanning cash and money markets, fixed income, equities, multi-asset, and commodity markets. Over the past year, more than 80% of the funds chosen by Endowus have recorded positive returns, with some funds even gaining over 20%.</p>



<p>Endowus innovatively forgoes sales commissions from fund providers. This not only helps investors save costs but also ensures Endowus can professionally and impartially offer high-quality products to clients unaffected by product commissions. Currently, Endowus&#8217;s average fund fee is only <strong>0.84%</strong> per year, saving users up to 70% in investment costs.</p>



<p>Speaking of user experience, Endowus offers an easy and flexible investment service. Users can construct their investment portfolios with single funds, or choose from ready-made, multi-fund “model portfolios” designed by Endowus’ team of investment experts. The model portfolios are designed to suit different investors’ risk tolerances, asset allocations, and investment goals. Endowus offers core portfolios such as “Passive Income”, “Global” and “Cash Management”, as well as satellite portfolios including “China Equities,” “Sustainability &#8211; Equities,” “Future Trends,” and “Global Technology”. The satellite portfolios can be suitable for investors who wish to seize investment opportunities in popular sectors.&nbsp;<br><br>Moreover, Endowus offers a <a href="https://endowus.com/en-hk/alternative-investments?utm_source=braze&amp;utm_medium=emai[…]ign=20230808_MKT_PlantoEndowusEN&amp;utm_content=plantoalternatives">private-market investment service</a> catering to professional investors (those with HK$8 million liquid assets or above), enabling them to access institutional-grade private equity, private credit, hedge funds, private real estate, and other alternative investment products.</p>



<planto-button link="https://www.planto.hk/en/redirect/?params=eyJwcm9kdWN0IjoiRW5kb3d1c19pbnZlc21lbnQiLCJ0eXBlIjoibG9hbiIsImFwcGx5VXJsIjoiaHR0cHM6Ly9hcHAuaGsuZW5kb3d1cy5jb20vc2lnbnVwP3V0bV9zb3VyY2U9YnJhemUmdXRtX21lZGl1bT1lbWFpbCZ1dG1fY2FtcGFpZ249MjAyMzA4MDhfTUtUX1BsYW50b0VuZG93dXNaSCZ1dG1fY29udGVudD1zaWdudXAiLCJmcm9tIjoiRW5kb3d1c19pbnZlc21lbnQifQ==">Open an Account Now</planto-button>



<h2 class="wp-block-heading"><strong>An Overview of Endowus</strong></h2>



<figure class="wp-block-table"><table><tbody><tr><td>Fund Products</td><td>&#8211; Endowus Fund Smart (200+ curated, high-quality funds from world-renowned fund houses)<br>&#8211; Core model portfolios<br>&#8211; Satellite model portfolios<br>&#8211; Alternative investments</td></tr><tr><td>Fees</td><td>Annual fee averaging 0.1% to 0.6% of total investments</td></tr><tr><td>Account Opening Funds Requirement:</td><td>HK$10,000 (as required by the HKSFC)</td></tr><tr><td>Licences and Regulation</td><td>Type 1 (Dealing in Securities), Type 4 (Advising on Securities), and Type 9 (Asset Management) regulated activities from HKSFC; CE No. BQR225</td></tr><tr><td>Year of Establishment</td><td>2017</td></tr><tr><td>Operating Markets</td><td>Singapore and Hong Kong</td></tr><tr><td>Cornerstone Investors &amp; Investment Amount</td><td>A group of 10+ investors, including UBS, Citi Ventures, MUFG Innovation Partners, EDBI, and SoftBank Ventures Asia, have invested over US$95 million to date.</td></tr></tbody></table></figure>



<p>Users can seamlessly purchase their desired fund products and complete their asset allocation by logging into the Endowus platform website and following the easy-to-understand instructions. Endowus&#8217; professional team selects more than&nbsp; 200 high-quality funds from thousands of options, saving you substantial screening time. It is straightforward for both seasoned investors and beginners.</p>



<p>Endowus’ investment team is led by Endowus Chairman and CIO Samuel Rhee, who is ex-CEO and CIO of Morgan Stanley Investment Management. Under his leadership, the team possesses diverse expertise and experience, gaining the trust and recognition of numerous investors. Combining experience with technology, Endowus provides various investment offerings based on users’ needs:&nbsp;</p>



<h2 class="wp-block-heading"><strong>Endowus Fund Smart</strong></h2>



<p>The investment team at Endowus meticulously selects more than 200 fund products from thousands of options based on their proprietary <a href="https://endowus.com/en-hk/invest-smart?utm_source=braze&amp;utm_medium=email&amp;utm_campaign=20230808_MKT_PlantoEndowusEN&amp;utm_content=plantoendowussmartplus">“SMART+” framework</a>. This process involves screening, measuring, assessing, refining, and tracking the funds under multiple layers of scrutiny. Investors can easily browse through these top-tier funds via the <a href="https://endowus.com/en-hk/insights/introducing-endowus-fund-smart?utm_source=braze&amp;utm_medium=email&amp;utm_campaign=20230808_MKT_PlantoEndowusEN&amp;utm_content=fundsmart">Endowus Fund Smart platform</a>.</p>



<p>The funds are managed by more than 40 leading global fund companies, including Allianz Global Investors, BlackRock, Fidelity, Franklin Templeton, Goldman Sachs Asset Management, JP Morgan Asset Management, PIMCO, and more. The geographies span the U.S., Europe, Asia, Japan, China, and other markets, and cover a diverse range of sectors including technology, energy, finance, thematics, and consumer goods. Users only need to consider the asset class, region, industry, or theme they wish to invest in to find a fund product that meets their needs.</p>



<h3 class="wp-block-heading"><strong>0% subscription and transaction fees</strong></h3>



<p>Low investment cost is the key to success in investing. With 0% subscription and transaction fees, Endowus only <a href="https://endowus.com/en-hk/pricing?utm_source=braze&amp;utm_medium=email&amp;utm_campaign=20230808_MKT_PlantoEndowusEN&amp;utm_content=pricing">charges a transparent, all-in Endowus fee</a> and rebates 100% of sales commissions to customers, which saves up to 70% of investment costs for investors.&nbsp;</p>



<p>Take the Blackrock BGF World Technology Fund as an example. As of 21 July 2023, the fund’s performance gained +24.3% year-to-date. If purchased through a retail bank or other online platforms, the total fund fee plus additional subscription and sales charges could range from 1.82% to 3.82% per year. However, on Endowus Fund Smart, the total cost of the same fund&#8217;s institutional share class is only 1.07%.&nbsp;</p>



<p>Endowus charges an annual advisory fee of 0.40% for investments under HK$20 million. Adding in the fund&#8217;s own costs, the total cost is just 1.47% per year, which is close to half of the prices on other platforms. Since 2019, Endowus has saved clients over US$20 million in investment fees. Users pay less in investment costs while directly investing in high-quality fund products.</p>



<p>Not only does Endowus not charge any subscription fees, it also rebates all the sales commissions received from fund managers. The benefits extend far beyond saving transaction costs for customers. Traditional financial advisors, private banks, and other asset management platforms often depend on sales commissions paid by fund companies for profits. This can lead to salespeople recommending products that may not be in clients&#8217; best interest in pursuit of high commissions.</p>



<p>Endowus&#8217; zero-commission model allows it to provide investment products and advice without being swayed by product commissions, ensuring it can select products that best meet investor needs and interests. Furthermore, Endowus complies with the SFC Conduct Rule 10.2, identifying itself as an independent financial advisory platform, reflecting its professionalism and objectivity.</p>



<p><img decoding="async" src="https://lh4.googleusercontent.com/BBJrf9cchaqyDAVq4XxjEf-kkhPxaH3M9_3JPDlJxvnq6F8bWBmHjZ6WfjdtYRJfZezX6EZCyxcT4tZ0h8_rbKlEUXgaH3krdGncocA7Qc33tJGSulPaTN01CRtYON4nv6b4m6W8hMXAf1XrBoyx4w" width="602" height="323"></p>



<p><a href="https://endowus.com/en-hk/investment-funds-list?utm_source=braze&amp;utm_medium=email&amp;utm_campaign=20230808_MKT_PlantoEndowusEN&amp;utm_content=fundsmart">Endowus Fund Smart</a> offers a large selection of high-quality and low-fee funds:</p>



<figure class="wp-block-table"><table><tbody><tr><td><strong>Funds</strong></td><td><strong>Past 1-Year Performance</strong></td><td><strong>Fund Level fees after Cashback</strong></td></tr><tr><td><strong>Blackrock BGF World Mining Fund</strong></td><td><strong>+22.62%</strong></td><td><strong>1.31%</strong></td></tr><tr><td><strong>Fidelity Global Technology Fund</strong></td><td><strong>+21.57%</strong></td><td><strong>1.03%</strong></td></tr><tr><td><strong>Harris Associates U.S. Value Equity Fund</strong></td><td><strong>+18.54%</strong></td><td><strong>1.05%</strong></td></tr><tr><td><strong>Goldman Sachs Asset Management Japan Equity Partners Portfolio Fund</strong></td><td><strong>+18.31%</strong></td><td><strong>0.74%</strong></td></tr><tr><td><strong>Blackrock BGF Sustainable Energy Fund</strong></td><td><strong>+17.64%</strong></td><td><strong>1.22%</strong></td></tr><tr><td><strong>T. Rowe Price US Large Cap Growth Fund</strong></td><td><strong>+17.02%</strong></td><td><strong>0.70%</strong></td></tr><tr><td><strong>BGF World Technology Fund</strong></td><td><strong>+16.24%</strong></td><td><strong>1.07%</strong></td></tr><tr><td><strong>Jupiter European Growth Equity Fund</strong></td><td><strong>+16.33%</strong></td><td><strong>1.02%</strong></td></tr><tr><td><strong>Allianz Global Investors Global Artificial Intelligence Fund</strong></td><td><strong>+14.77%</strong></td><td><strong>1.23%</strong></td></tr><tr><td><strong>Abrdn European Sustainable Equity Fund</strong></td><td><strong>+14.64%</strong></td><td><strong>0.94%</strong></td></tr><tr><td><strong>Blackrock BGF Future of Transport Fund</strong></td><td><strong>+13.94%</strong></td><td><strong>1.00%</strong></td></tr></tbody></table><figcaption class="wp-element-caption"><em>▲Data updated as of July 31, 2023.</em></figcaption></figure>



<h2 class="wp-block-heading"><strong>Model Portfolios</strong></h2>



<p>Not sure which fund to buy? The <a href="https://endowus.com/en-hk/insights/introducing-model-portfolios?utm_source=braze&amp;utm_medium=email&amp;utm_campaign=20230808_MKT_PlantoEndowusEN&amp;utm_content=modelportfolios">Endowus “model portfolios”</a> are multi-fund investment portfolios carefully designed by Endowus&#8217;s investment research team, including major portfolios such as: &#8220;Cash Management,&#8221; &#8220;Global,&#8221; &#8220;Passive Income,&#8221; &#8220;China Equities,&#8221; &#8220;Future Trends,&#8221; &#8220;Global Technology&#8221; and &#8220;Sustainability &#8211; Equities&#8221;. Investors can either use the portfolio as it is, or adjust the portfolio&#8217;s asset allocation or underlying funds according to their wealth goals and risk tolerance, further customizing a suitable asset allocation plan for themselves.</p>



<p><img decoding="async" width="602" height="416" src="https://lh5.googleusercontent.com/ktOaKaB7dfvoZMkLglsfHcR0Q2tm6YV7l6BcwcYAHHZqkk3x-LSi_FvtneOvJBy7gVVdInDo3nwuh0o157GjgAKTegNBdMMj1cx7H419QJvcxFSfN9TJD0a6f6dvzJWSeksD7pEqv-zWekyEeH-oNA"></p>



<p><em>▲ In the &#8220;Global&#8221; portfolio, users can adjust the allocation of stocks and bonds according to the risk they can bear.</em></p>



<h2 class="wp-block-heading"><strong>Satellite Portfolios</strong></h2>



<p>For those who already have a basic allocation of assets and want to set up a core-satellite investing strategy, Endowus has also taken into account their needs. The satellite portfolios, “China Equities,” “Sustainability &#8211; Equities,” “Future Trends,” and “Global Technology,” allow users to capture investment opportunities in specific regions, industries, or themes. For example, the &#8220;Sustainability &#8211; Equities&#8221; model portfolio is made up of quality ESG (environmental, social, and governance) funds, and could appeal to investors who are interested in environmental issues or making a positive societal impact. However, it is essential to note that any concentrated investment in a single sector or region may increase the overall portfolio’s investment risk accordingly.</p>



<h2 class="wp-block-heading"><strong>Alternative Investments</strong></h2>



<p><a href="https://endowus.com/en-hk/insights/why-professional-investor?utm_source=braze&amp;utm_medium=email&amp;utm_campaign=20230808_MKT_PlantoEndowusEN&amp;utm_content=professionalinvestor">Professional investors</a> (those with liquid assets of at least HK$8 million) on the Endowus platform can access institutional-grade alternative investment opportunities. Registered professional investors can invest in private equity, private credit, private real estate, hedge funds, and other products carefully selected by the Endowus investment research team. All these funds available on the Endowus platform are managed by the world&#8217;s top alternative investment management companies.</p>



<h2 class="wp-block-heading"><strong>Online Account Opening as Fast as 10 Minutes</strong></h2>



<p>Endowus provides a smooth online account opening service. Hong Kong users can complete the account opening process on the website or app. Here are a few quick steps to do so:</p>



<ol>
<li>Register for an account with an email on the Endowus website or app, set a password, and complete phone number verification.</li>



<li>Fill in personal information and complete an investment risk assessment.</li>



<li>Upload identification documents such as an ID card or passport.</li>



<li>Transfer HK$10,000 or more from a local bank account in compliance with the requirements of the SFC of Hong Kong to activate the account.</li>



<li>Approval can be as quick as 1 business day, and applicants will receive an email notification upon successful application.</li>
</ol>



<planto-button link="https://www.planto.hk/en/redirect/?params=eyJwcm9kdWN0IjoiRW5kb3d1c19pbnZlc21lbnQiLCJ0eXBlIjoibG9hbiIsImFwcGx5VXJsIjoiaHR0cHM6Ly9hcHAuaGsuZW5kb3d1cy5jb20vc2lnbnVwP3V0bV9zb3VyY2U9YnJhemUmdXRtX21lZGl1bT1lbWFpbCZ1dG1fY2FtcGFpZ249MjAyMzA4MDhfTUtUX1BsYW50b0VuZG93dXNaSCZ1dG1fY29udGVudD1zaWdudXAiLCJmcm9tIjoiRW5kb3d1c19pbnZlc21lbnQifQ==">Open an Account Now</planto-button>



<h2 class="wp-block-heading"><strong>Endowus Fee</strong></h2>



<p><a href="https://app.hk.endowus.com/signup?utm_source=braze&amp;utm_medium=email&amp;utm_campaign=20230808_MKT_PlantoEndowusEN&amp;utm_content=plantoendowus">Endowus’ charges</a> are clear and transparent, only charging an all-in Endowusfee, calculated based on the daily average asset value of investments held in the account, with an annual fee ranging from 0.1% to 0.6%.There are no subscription fees, platform fees, switching fees etc and they rebate 100% sales commission received from fund managers as Cashback to clients.</p>



<figure class="wp-block-table"><table><tbody><tr><td></td><td>Cash Management</td><td>Traditional Investment&nbsp;</td><td>Alternative Investment&nbsp;</td></tr><tr><td>Single Fund</td><td>0.10%</td><td>&#8211; Below HK$20 million: 0.40%&nbsp;<br>&#8211; HK$20 million to HK$35 million: 0.35%<br>&#8211; Above HK$35 million: 0.25%</td><td>&#8211; Below US$500,000: 0.60%<br>&#8211; US$500,000 to US$1 million: 0.55%<br>&#8211; US$1 million to US$3 million: 0.50%<br>&#8211; US$3 million to US$5 million: 0.45%<br>&#8211; Above US$5 million: 0.40%</td></tr><tr><td>Fund Portfolio</td><td>0.10%</td><td>&#8211; Below HK$1 million: 0.60%<br>&#8211; HK$1 million to HK$8 million: 0.50%<br>&#8211; HK$8 million to HK$20 million: 0.40%<br>&#8211; HK$20 million to HK$35 million: 0.35%<br>&#8211; Above HK$35 million: 0.25%</td><td>&#8211; Below US$500,000: 0.60%<br>&#8211; US$500,000 to US$1 million: 0.55%<br>&#8211; US$1 million to US$3 million: 0.50%<br>&#8211; US$3 million to US$5 million: 0.45%<br>&#8211; Above US$5 million: 0.40%</td></tr></tbody></table></figure>



<h2 class="wp-block-heading"><strong>Who is Endowus Suitable for?</strong></h2>



<p>Endowus allows retail investors to subscribe to institutional-grade funds with as little as HK$10,000. Although it should be noted that institutional-grade funds do not guarantee no losses, the extremely low fund fees indeed significantly reduce the cost of investment.</p>



<p>Looking at the performance over the past year, Endowus has selected more than 200 funds, over 80% of which have recorded positive returns, with some funds having gains of more than 20%. The performance is quite impressive. Whether you are a beginner at investing, lack the time to analyze a large amount of information, or are a professional investor, you will most probably be able to find suitable and comprehensive fund products on Endowus. It allows you to choose and customise high-quality, multi-fund portfolios in the shortest time. As a platform for main investment funds, it is a trustworthy choice.</p>



<h2 class="wp-block-heading"><strong>FAQ About Endowus</strong></h2>



<div class="schema-faq wp-block-yoast-faq-block"><div class="schema-faq-section" id="faq-question-1691559701426"><strong class="schema-faq-question"><strong>Are my assets safe with Endowus?</strong></strong> <p class="schema-faq-answer">As per the requirements of the Hong Kong Securities and Futures Commission, customer funds and assets are stored separately from Endowus&#8217;s company assets. All of the client&#8217;s investments are stored in custodian accounts maintained by the respective transfer agents of each fund company (such as Fidelity, Invesco, etc.). Uninvested cash balances are stored in a separate client money account at HSBC in Hong Kong, which is regulated by the Hong Kong Monetary Authority.</p> </div> <div class="schema-faq-section" id="faq-question-1691559719689"><strong class="schema-faq-question"><strong>How do I register as a professional investor?</strong></strong> <p class="schema-faq-answer">To <a href="https://helphk.endowus.com/hc/en-hk/articles/13415228461081-How-do-I-qualify-as-a-Professional-Investor-HK-?utm_source=braze&amp;utm_medium=email&amp;utm_campaign=20230808_MKT_PlantoEndowusEN&amp;utm_content=qualify">register as a professional investor</a>, you simply need to submit proof to Endowus that you hold liquid assets worth HK$8 million for verification. The assets include investment market value (stocks, bonds, unit trusts, equity-linked investments, and other investment products), deposit certificates, and cash or cash equivalent deposits.</p> </div> </div>


As per the requirements of the Hong Kong Securities and Futures Commission, customer funds and assets are stored separately from Endowus's company assets. All of the client's investments are stored in custodian accounts maintained by the respective transfer agents of each fund company (such as Fidelity, Invesco, etc.). Uninvested cash balances are stored in a separate client money account at HSBC in Hong Kong, which is regulated by the Hong Kong Monetary Authority.

Are my assets safe with Endowus?

To <a href="https://helphk.endowus.com/hc/en-hk/articles/13415228461081-How-do-I-qualify-as-a-Professional-Investor-HK-?utm_source=braze&utm_medium=email&utm_campaign=20230808_MKT_PlantoEndowusEN&utm_content=qualify">register as a professional investor</a>, you simply need to submit proof to Endowus that you hold liquid assets worth HK$8 million for verification. The assets include investment market value (stocks, bonds, unit trusts, equity-linked investments, and other investment products), deposit certificates, and cash or cash equivalent deposits.

How do I register as a professional investor?

Navigating countless fund options often requires investors to invest significant time in detailed product analysis and selection. As Asia's leading online wealth management platform, Endowus introduces a novel user experience, pioneering an operating model that forgoes sales commissions. With their proprietary “SMART+ framework” for fund selection, Endowus provides users with fair, reasonable costs and professional investment choices. 

Endowus Review: Access Institutional-Grade Funds at Zero Commission, Save 70% of Fees


<p>Starting a business is easy, but sustaining it is tough. This age-old saying remains relevant today. Whether you&#8217;re a startup or an SME that has been operating for a while, when it comes to expanding or upgrading the business, financial challenges are inevitable. What channels are available in the market to provide financial support for SMEs in Hong Kong? What should one be aware of when applying for a SME Loan in Hong Kong?</p>



<h2 class="wp-block-heading"><strong>Bank SME Loans</strong></h2>



<p>Many banks and lending companies offer SME Loans in Hong Kong services. These are primarily secured and unsecured loans, with loan amounts reaching up to tens of millions. The annual interest rate usually ranges from 7% to 20%. Borrowers should consider if the loan interest and period meet their needs.</p>



<p>However, SME loan amounts can be substantial. Applicants might need to provide numerous documents, such as company registration proof, invoices, inventory records, and bank statements from the past six months. The approval process is intricate, typically taking 1 to 2 months. For urgent financial needs, traditional bank SME loans might not be the quickest solution.</p>



<p>Virtual banks like ZA Bank and PAOB offer business loans. Their application processes are simpler than traditional banks, and approval times are faster. For instance, PAOB&#8217;s loan service offers amounts from HK$100,000 to HK$2,000,000 with loan periods of up to 24 months. PAOB claims that from application to loan disbursement, it only takes five days, allowing quicker access to funds.</p>



<h2 class="wp-block-heading"><strong>Personal Loans</strong></h2>



<p>To apply for government-guaranteed loans or subsidy programs, certain qualifications are required. These loans and subsidies also come with usage restrictions, making them less flexible for corporate financial management. If you&#8217;re looking to infuse extra funds into your company, consider approaching banks and financial institutions for <a href="https://www.planto.hk/en/blog/category/loans/">personal loans</a>. Since they&#8217;re taken out in an individual&#8217;s name, the bank will assess the loan amount based on your income and credit history. The approved loan is often 10 to 20 times your monthly salary. The review process can be as quick as one day, but the amount might not be sufficient for company needs.</p>



<h2 class="wp-block-heading"><strong>Government Business Loans/Subsidy Programs in Hong Kong</strong></h2>



<h3 class="wp-block-heading"><strong>Technology Voucher Program (TVP)</strong></h3>



<p>Launched in November 2016, the TVP aims to support local businesses in utilizing technology services and solutions to enhance productivity or streamline business operations. Eligible companies can get up to HK$600,000 in subsidies.</p>



<p>To qualify, one must be:</p>



<ul>
<li>Registered under the Business Registration Ordinance or Companies Ordinance or a legal entity established in Hong Kong.</li>



<li>Not a listed company in Hong Kong nor a government-funded organization or its subsidiary.</li>



<li>Operating a business in Hong Kong relevant to the applied project.</li>
</ul>



<p>SMEs in Hong Kong can apply for the technology voucher if they meet the above criteria. The subsidy covers technology consultancy services, equipment and software purchases, and technology service solutions and audits.</p>



<h3 class="wp-block-heading"><strong>SME Export Marketing Fund</strong></h3>



<p>This fund encourages SMEs to participate in export promotion activities, helping them expand overseas markets. Eligible businesses can receive up to HK$1,000,000 in fund support.</p>



<h3 class="wp-block-heading"><strong>SME Financing Guarantee Scheme</strong></h3>



<p>Promoted by the Hong Kong Monetary Authority and implemented by the Hong Kong Mortgage Corporation Insurance Limited, this lending scheme assists cash-strapped SMEs. The insurance company provides credit guarantees of 50%, 60%, 70%, 80%, or 90%, enabling businesses to benefit from lower loan interests and higher loan amounts.</p>



<h2 class="wp-block-heading">Find the Best Loans in Hong Kong</h2>



<loan-table> language=&#8221;en&#8221; </loan-table>


SME Loans Hong Kong: Comprehensive guide on loan channels for businesses. Explore bank, private, and government loan options for your SME's financial needs.

SME Loans Hong Kong: How Can Companies Borrow Money?


<p>Starting a company is the first step in entrepreneurship. While registering a company in Hong Kong has been simplified significantly, first-time entrepreneurs might still find the procedures daunting. Even if you outsource the registration process to accounting and secretarial firms, founders must be familiar with the process and crucial details to ensure a smooth start to their business journey.</p>



<h2 class="wp-block-heading"><strong>Limited Company vs. Unlimited Company: What&#8217;s the Difference?</strong></h2>



<p>When considering starting a small or medium-sized enterprise, the two most commonly known types of companies are limited and unlimited companies. They differ in terms of their legal status, debt, and tax liabilities. The main differences include:</p>



<h3 class="wp-block-heading"><strong>Limited Company in Hong Kong</strong></h3>



<ul>
<li>A limited company is a legal entity with its own legal status. Shareholders can enter into contracts or borrow money in the company&#8217;s name. Limited companies must appoint a registered accountant annually for auditing and submit an annual return for tax assessments.</li>



<li>As limited companies are separate from their shareholders, in most cases, shareholders aren&#8217;t personally liable for the company&#8217;s debts unless they&#8217;ve signed specific collateral agreements.</li>



<li>Limited companies can further be classified into:
<ul>
<li><strong>Company Limited by Shares:</strong> Most companies in Hong Kong are registered under this type. The legal responsibility of company members is determined by their articles of association and is limited to the unpaid amount on the shares they hold.</li>



<li><strong>Company Limited by Guarantee:</strong> This type doesn&#8217;t have share capital. The legal liability of its members is limited to the amount they have pledged to contribute to the company&#8217;s assets upon liquidation. Typically, non-profit organizations (NGOs) register as companies limited by guarantee.</li>
</ul>
</li>
</ul>



<h2 class="wp-block-heading"><strong>Unlimited Company in Hong Kong</strong></h2>



<ul>
<li>Unlimited companies operate under individual or partnership names. In simple terms, once a business registration is obtained, it&#8217;s equivalent to owning an unlimited company. Since they don&#8217;t have separate legal status, shareholders have unlimited liability. If the company incurs debts, shareholders might have to use their assets to settle them.</li>



<li>There are advantages to operating an unlimited company. For instance, there&#8217;s no need to submit audited financial reports annually. Instead, you only need to keep accounts and offer tax returns on time, saving at least HK$10,000 in auditing expenses annually.</li>



<li>Tax rates for unlimited companies are also generally lower. Currently, the profits tax rate for the first HK$2 million for limited companies is 8.25%, and 16.5% for profits beyond that. For unlimited companies, the tax rates are 7.5% and 15%, respectively.</li>
</ul>



<h2 class="wp-block-heading"><strong>Procedure to Establish a Limited Company</strong></h2>



<h3 class="wp-block-heading"><strong>Step 1: Decide on a Company Name</strong></h3>



<ul>
<li>You can use English or Traditional Chinese for the company&#8217;s registered name. Simplified Chinese or mixed language (Chinese-English) names aren&#8217;t accepted. Ensure that your chosen name doesn&#8217;t clash with existing entities. You can check for name availability through the Companies Registry&#8217;s online search center, mobile service, or in person at the public search center located at Queensway Government Offices.</li>
</ul>



<h3 class="wp-block-heading"><strong>Step 2: Submit the Application and Pay the Fees</strong></h3>



<ul>
<li>Submit your application electronically (through the &#8220;e-Registry&#8221; website or the &#8220;CR eFiling&#8221; mobile app) or in physical form to the Companies Registry. Required documents and fees include:
<ul>
<li>Incorporation Form (NNC1 or NNC1G form)</li>



<li>Articles of Association</li>



<li>Notification to the Business Registration Office (IRBR1 form)</li>



<li>Business Registration Fee: HK$2,150 for one year; HK$5,650 for three years</li>



<li>Company Registration Fee: Currently HK$1,720</li>
</ul>
</li>
</ul>



<h3 class="wp-block-heading"><strong>Step 3: Receive Company Registration Certificate</strong></h3>



<ul>
<li>You will receive the Company Registration Certificate and Business Registration Certificate upon successful application. Depending on your submission method, they can be issued electronically or in a physical format, both having the same legal validity.</li>



<li>Electronic Certificate: Notification will be sent via email, allowing the applicant to download the certificate.</li>



<li>Physical Certificate: Notification is sent via fax. When collecting the certificate, you must present the &#8220;Certificate Collection Notice&#8221; and the ID proof/company stamp mentioned in the notice.</li>
</ul>



<p>After successfully establishing a limited company, you can use your business registration and company registration certificates to open a company bank account to manage daily operations. Additionally, if hiring employees, ensure you purchase worker&#8217;s insurance and set up Mandatory Provident Fund (MPF) accounts for them.</p>



<h2 class="wp-block-heading">Find the Best Loans in Hong Kong</h2>



<loan-table> language=&#8221;en&#8221; </loan-table>


Hong Kong Business Registration 2023 Guide: Dive into the differences between limited and unlimited Companies. Navigate the startup process efficiently with this detailed overview.

HK Business Registration 2023: Limited vs. Unlimited Company Guide


<p>Pets are important members of the family. In recent years, many insurance companies have introduced pet insurance with comprehensive coverage, benefiting both pet health and owner finances.</p>



<p>When choosing the right pet insurance, knowing what to look for and which plan best suits you and your pet can be overwhelming. This article will explain the basic concepts of pet insurance and guide what to consider when insuring your pet.</p>



<p><single-action-item title="🎁🎁OneDegree X Planto: 20% Off First Year Premium" subtitle="From now until 30 June, 2023, apply for OneDegree pet insurance through Planto and enter the promo code 'PLANTO20' before checkout to enjoy a 20% discount on the first-year premium." link="https://www.planto.hk/en/redirect/?params=eyJwcm9kdWN0IjoiT25lRGVncmVlX3BldF9GZWIiLCJ0eXBlIjoiSW5zdXJhbmNlIiwiYXBwbHlVcmwiOiJodHRwczovL2JpdC5seS8zWWV2eDJSIiwiZnJvbSI6Ik9uZURlZ3JlZV9wZXRfRmViIn0=" button_text="Get the Offer" lang="zh" type="content"></single-action-item></p>



<h2 class="wp-block-heading">How Does a Pet Insurance Work?</h2>



<p>As we all know, veterinary care and pet surgeries can be quite expensive in Hong Kong. Pet insurance protects pet owners&#8217; interests by transferring potential financial risks to the insurance company.</p>



<p>Currently, the primary pets covered by insurance policies on the market are cats and dogs, with coverage including pet medical care, pet liability, search and rescue advertisements, and accidental funeral expenses.</p>



<p>In addition, if a pet accidentally injures someone or damages someone else&#8217;s property, pet liability insurance can help the owner pay for financial compensation, effectively reducing their financial burden.</p>



<h2 class="wp-block-heading">Comparison of Pet Insurance Compensation Types</h2>



<p>While human insurance products come in wide varieties, pet insurance is relatively simple, generally based on medical coverage with additional protections such as third-party liability, accident, and loss compensation.</p>



<figure class="wp-block-table"><table><tbody><tr><td><strong>Pet Insurance Coverage Scope</strong></td><td><strong>Description</strong></td></tr><tr><td><strong>Medical coverage</strong></td><td>Medical insurance for pets aims to cover medical expenses resulting from pet injuries or illnesses, typically reimbursing the owner for actual costs incurred, similar to human hospitalization insurance.<br><br>Typical coverage for pet medical insurance includes veterinary outpatient, inpatient, and surgical fees, including blood tests, X-rays, and other examinations. Some insurance policies cover long-term illnesses such as diabetes, chronic kidney disease, and joint issues and even include alternative therapies such as homeopathy, acupuncture, and physiotherapy, when a veterinarian recommends.</td></tr><tr><td><strong>Loss compensation</strong></td><td>Current pet loss compensation does not reimburse the pet&#8217;s value when lost, but rather, when the pet is found missing, the owner can claim advertising or printing expenses for search ads from the insurance company to help locate their pet. However, compensation usually does not cover rewards offered in search ads.</td></tr><tr><td><strong>Third-party liability</strong></td><td>In pet insurance, third-party liability coverage refers to situations where a pet&#8217;s behavior causes injury, death, or property damage to a third party. The insurance company compensates according to policy terms, similar to third-party auto insurance.<br><br>However, policyholders should be aware that some liability insurance does not cover the total amount, and the owner may need to bear a percentage of the compensation. Additionally, there is a limit to third-party liability compensation.</td></tr></tbody></table></figure>



<h2 class="wp-block-heading">Considerations and Comparisons When Buying a Pet Insurance</h2>



<p>Compare pet insurance coverage scope and amounts: Each policy has its coverage scope, and the terms and conditions stipulate the compensation for specific events or accidents during the policy&#8217;s effective period. There may be differences between policies even within the same type of coverage plan. The higher the coverage scope and amount, the more expensive the premium. Therefore, you need to consider the necessity of additional coverage and amounts.</p>



<h3 class="wp-block-heading">Compare Pet Insurance Coverage and Amounts</h3>



<p>Each policy has its coverage, and the terms and conditions stipulate the compensation for specific events or accidents during the policy&#8217;s effective period. There may be differences between policies even within the same type of coverage plan. The higher the coverage scope and amount, the more expensive the premium. Therefore, you need to consider the necessity of additional coverage and amounts.</p>



<h3 class="wp-block-heading">Compare Pet Insurance Premiums</h3>



<p>The primary purpose of purchasing pet insurance is to receive compensation in case of accidents or the diagnosis of severe illnesses, reducing financial burdens—pet insurance premiums on the market range from a few thousand to over five thousand dollars per year. Before purchasing, you must balance premium costs and the possibility of claims.</p>



<h3 class="wp-block-heading">Compare Pet Insurance Exclusions</h3>



<p>Exclusions are the uncovered items, referring to conditions for which the insurance company does not provide compensation. Insurance companies coverage plans have various items and exclusions, such as congenital diseases, pre-existing conditions, dental care, sterilization, pregnancy, and routine physical examination expenses. These items will be listed in the insurance contract. When purchasing insurance, review the policy&#8217;s exclusions to avoid unnecessary disputes and manage your financial budget effectively.</p>



<h3 class="wp-block-heading">Assess Potential Medical Expenses for Your Pet</h3>



<p>&nbsp;If your pet becomes ill or encounters an accident, numerous medical expenses may arise, including veterinary consultation fees, surgery, anesthesia, hospitalization, X-rays, and ultrasound examination fees. Depending on your pet&#8217;s breed, age, and medical history, the potential medical expenses for the owner may vary significantly.&nbsp;</p>



<p>It is essential to do your research beforehand, consult with experienced friends or online acquaintances who have similar pets, and evaluate the type and amount of pet insurance coverage you need to purchase.</p>



<p>In conclusion, when selecting pet insurance, it is crucial to consider the coverage scope, premium costs, and any exclusions in the policy. Thorough research and consultation with experienced pet owners can help you make an informed decision to ensure your pet is protected and your financial burdens are minimized in case of accidents or illnesses.</p>



<p><single-action-item title="🎁🎁OneDegree X Planto: 20% Off First Year Premium" subtitle="From now until 30 June, 2023, apply for OneDegree pet insurance through Planto and enter the promo code 'PLANTO20' before checkout to enjoy a 20% discount on the first-year premium." link="https://www.planto.hk/en/redirect/?params=eyJwcm9kdWN0IjoiT25lRGVncmVlX3BldF9GZWIiLCJ0eXBlIjoiSW5zdXJhbmNlIiwiYXBwbHlVcmwiOiJodHRwczovL2JpdC5seS8zWWV2eDJSIiwiZnJvbSI6Ik9uZURlZ3JlZV9wZXRfRmViIn0=" button_text="Get the Offer" lang="zh" type="content"></single-action-item></p>


Discover how to choose the perfect pet insurance plan for your beloved furry companion, ensuring their well-being while safeguarding your finances.






Pet Insurance Hong Kong: A Guide to Protecting Your Furry Friends & Wallet

According to the definition by the Hong Kong Monetary Authority, a virtual bank is a bank that primarily offers retail banking services through the internet or other electronic channels instead of physical branches. The HKMA believes virtual banks can promote fintech and innovation in Hong Kong and provide customers with new experiences.

What is a virtual bank?

Licensed virtual banks in Hong Kong include ZA Bank, Airstar Bank, MOX Bank, livi bank, WeLab Bank, Ant Bank, PAO Bank, and Fusion Bank.

Which virtual banks are there in Hong Kong?

The eligibility criteria for opening a virtual bank account vary slightly depending on each bank but mainly require the following:<br/><br/>- Being at least 18 years old<br/>- Holding a valid Hong Kong identity card<br/>- Having a Hong Kong mobile number for receiving SMS<br/>- Having a valid Hong Kong residential address

What are the eligibility criteria for opening a virtual bank account?

Deposits to virtual bank accounts can mainly be made through Faster Payment System (FPS), electronic Direct Debit Authorization (eDDA), and account number transfer.

How can the money be deposited into a virtual bank account?

Some virtual banks allow customers can withdraw cash through ATMs. Otherwise, customers have to transfer money to another bank account to withdraw cash.

How can virtual bank customer withdraw their money?

Like traditional retail banks, all virtual banks participate in Deposit Protection Scheme, and depositors are eligible for up to HK$ 500,000 in deposit protection.

Do virtual banks participate in the Deposit Protection Scheme?

 Virtual banks are neobanks that do not have physical retail presence. Their services are 100% digital and the services can range from deposit, personal loan, debit/credit card or even insurance. Learn more about the welcome offers of Hong Kong virtual banks. 

Virtual Bank Hong Kong: Comparison, Promo Codes & Welcome Offers


<p>Can you get a loan without income proof? Anyone can experience financial difficulties, but for those with an unstable income, self-employed individuals, or unemployed individuals such as students and homemakers, it can be challenging to provide income proof when applying for a personal loan.</p>



<p>Fortunately, banks and financial institutions now offer &#8220;no document loans&#8221; or &#8220;no income proof loans&#8221; that allow borrowers to apply without providing income verification or specific documents, making the loan application process more convenient and efficient.</p>



<p>Learn more about no-doc loans.</p>



<h2 class="wp-block-heading">What are No-Documentation Loans or Loans without Income Proof?</h2>



<p>When applying for a personal loan, at least three specific documents are required as proof for approval, namely income proof, address proof, and identity proof. Loan institutions evaluate a borrower&#8217;s repayment ability based on these documents and check their credit score before approving the loan amount, actual annual interest rate, and other terms.</p>



<p>The term &#8220;no-documentation loan&#8221; does not always mean that no documents are required for application. In a broader sense, it refers to the situation where one of the three specific documents does not need to be provided, which can also be called a &#8220;no-documentation&#8221; loan. </p>



<p>The most common situation is when the applicant cannot provide income proof, and banks and financial institutions offer them &#8220;loans without income proof&#8221; or &#8220;no income verification loan.&#8221; Although some documents can be waived, identity proof is still required.</p>



<loan-table> language=&#8221;en&#8221; </loan-table>



<h2 class="wp-block-heading">No-Doc Loans Offered by Banks and Financial Institutions</h2>



<p>In the past, no-doc or no-income proof loans were mostly provided by lending companies. However, in 2018, the Hong Kong Monetary Authority issued new guidelines for credit risk management in personal loan businesses to banks. The guidelines allowed banks to establish a &#8220;New Personal-Lending Portfolio&#8221; and offer online no-documentation loan services, with loan amounts recommended to be lower than traditional <a href="https://www.planto.hk/en/blog/personal-loan-APR-comparison/">personal loans</a>.</p>



<p>Banks no longer need to strictly follow traditional personal loan approval methods when approving no-doc loans, such as collecting customers&#8217; income proof. Instead, they can use big data and behavioral pattern analysis to assess customers&#8217; repayment ability and loan risk as the basis for approval and loan amount.</p>



<p>Besides traditional banks, more virtual banks and financial institutions are entering the personal loan market. The advancement of technology has simplified loan applications further. The most common type of loan on the market now is the so-called &#8220;loan without income proof,&#8221; which eliminates income proof, such as pay stubs and tax forms, and only requires identity and address proof. In some cases, even address proof can be waived.</p>



<h2 class="wp-block-heading">Characteristics of No-Doc Loan/No-Income Proof Loan</h2>



<ul>
<li><strong>Quick and easy application process:</strong> Banks and financial institutions that offer no-doc loan products often provide online application services, allowing applicants to submit supporting documents online. Approval time can be as fast as 30 minutes.</li>



<li><strong>Lower loan amount:</strong> Because some supporting documents are waived, the upper limit of the approved loan amount ranges from HK$10,000 to $150,000. If you want to get a higher loan amount, you may need to submit complete documents for the application.</li>



<li><strong>Higher interest rates:</strong> As the requirements for documents are more relaxed, the risk for lending institutions is higher. Therefore, interest rates may be higher than those for regular personal loans. The actual interest rate depends on factors such as the applicant&#8217;s credit score and past repayment records.</li>



<li><strong>Suitable for people with no fixed income: </strong>Generally, no-income proof loan products waive income-proof documents, making it easier for people with an unstable income, cash income, or no income proof, such as self-employed or freelancers, to apply.</li>
</ul>



<h3 class="wp-block-heading">FAQ About No-Doc Loans</h3>



<div class="schema-faq wp-block-yoast-faq-block"><div class="schema-faq-section" id="faq-question-1681700354766"><strong class="schema-faq-question">Can you get a no-doc loan if unemployed?</strong> <p class="schema-faq-answer">No, even though income proof is not required for these loans, borrowers still need to demonstrate a certain level of repayment ability. When filling out personal information, you will need to provide your occupation and monthly income. If you indicate that you are unemployed or have no income, you may not qualify for the loan or be approved during the final review.</p> </div> <div class="schema-faq-section" id="faq-question-1681700412648"><strong class="schema-faq-question">How can I obtain a better loan interest rate?</strong> <p class="schema-faq-answer">Assuming you have no income proof, your credit report will affect the loan interest rate. Different lenders may offer different rates, so it is important to compare the actual annual percentage rate (APR) before making a decision.</p> </div> <div class="schema-faq-section" id="faq-question-1681700427660"><strong class="schema-faq-question">What financial fees should I pay attention to?</strong> <p class="schema-faq-answer">Before applying for a personal loan, pay attention to whether the lender will charge administrative fees, prepayment fees, etc. Additionally, if you fail to repay the loan on time and are charged a penalty fee, remember the government&#8217;s call to &#8220;borrow responsibly and avoid using loan sharks&#8221;.</p> </div> </div>



<p><em>To borrow or not to borrow?&nbsp;Borrow only if you can repay!</em></p>


No, even though income proof is not required for these loans, borrowers still need to demonstrate a certain level of repayment ability. When filling out personal information, you will need to provide your occupation and monthly income. If you indicate that you are unemployed or have no income, you may not qualify for the loan or be approved during the final review.

Can you get a no-doc loan if unemployed?

Assuming you have no income proof, your credit report will affect the loan interest rate. Different lenders may offer different rates, so it is important to compare the actual annual percentage rate (APR) before making a decision.

How can I obtain a better loan interest rate?

Before applying for a personal loan, pay attention to whether the lender will charge administrative fees, prepayment fees, etc. Additionally, if you fail to repay the loan on time and are charged a penalty fee, remember the government's call to "borrow responsibly and avoid using loan sharks".

What financial fees should I pay attention to?

Looking for a loan without income proof? It can be tough for self-employed, unemployed, or those with unstable income. Learn more about no doc loans.





No-Doc Loan: Borrow Cash Without Income Proof/Verification


<p>While it is always better to prepare early when it comes to borrowing money, life often presents unexpected situations, and we may not be able to predict when we will need a loan. When traditional banks or lending companies are closed during late-night hours, Sundays, or on public holidays, 24-hour personal loans can provide immediate cash access.</p>



<h2 class="wp-block-heading">What are 24-hour personal loans?&nbsp;</h2>



<p>Traditional banks and lending companies typically operate from Monday to Saturday during regular office hours. Their staff processes loan applications and approvals during this time.</p>



<p>This limited availability may cause inconvenience for some borrowers who may be unable to apply during regular working hours or who urgently need a loan outside these hours. Some financial institutions offer 24-hour loans to address this issue, accepting applications and processing approvals anytime, even on Sundays and public holidays.</p>



<h2 class="wp-block-heading">Find the Best Personal Loan Online 24/7</h2>



<loan-table> language=&#8221;en&#8221; </loan-table>



<h2 class="wp-block-heading">Comparing Virtual banks and lending companies&#8217; 24-hour loans&nbsp;</h2>



<p>Traditionally, most 24-hour <a href="https://www.planto.hk/en/blog/personal-loan-APR-comparison/">personal loans</a> are provided by lending companies. However, virtual banks have also started offering similar online lending services in recent years.</p>



<ul>
<li><strong>24-hour loans by lending companies:</strong>&nbsp;Some lending companies offer 24-hour personal loans that can be applied for over the phone or online. Customers do not need to visit in person and can submit required documents online. Approval may be faster if applying for a loan without proof of income, but the loan amount will likely be lower.&nbsp;</li>



<li><strong>24-hour loans by virtual banks:&nbsp;</strong>In Hong Kong, virtual banks such as Airstar Bank and ZA Bank offer 24-hour personal loans. Customers can submit applications and upload necessary documents via mobile apps. Approvals are processed immediately, and customers can receive loans as fast as one hour.</li>
</ul>



<h2 class="wp-block-heading">Features of 24-hour personal loans&nbsp;</h2>



<p>24-hour personal loans are flexible and designed to provide convenience for those needing funds. Their main features include the following:</p>



<ul>
<li><strong>All-weather application and approval:&nbsp;</strong>Customers can apply for 24-hour loans at any time, including Sundays, public holidays, or outside regular office hours, via mobile apps, websites, or phone calls. However, some institutions may only accept applications 24/7 but process approvals during regular office hours, so inquire before applying.&nbsp;</li>



<li><strong>Simple application process:&nbsp;</strong>In many cases, 24-hour personal loans are designed for quick approval, and the document requirements are more relaxed. Some even offer loans without requiring proof of income or address.&nbsp;</li>



<li><strong>Lower loan amounts:&nbsp;</strong>Loans without proof of income or address typically have higher risks for lenders, so the approved loan amounts are usually lower.&nbsp;</li>



<li><strong>Higher interest rates from lending companies:&nbsp;</strong>Many 24-hour loans are provided by lending companies, which generally charge higher interest rates than virtual banks.</li>
</ul>



<h2 class="wp-block-heading">24-hour cash loan application process&nbsp;</h2>



<p>The application process for 24-hour personal loans is similar to standard loans. Required documents usually include an ID card, proof of address, and proof of income. The specific steps and required documents vary depending on the lending institution and the borrower&#8217;s financial situation, but the main application process includes the following:</p>



<ul>
<li><strong>Applying:&nbsp;</strong>Applicants can submit their 24-hour personal loan applications online, via phone, or mobile. Lending companies typically require applicants to provide their name, ID number, phone number, address, desired loan amount, occupation, and income status.&nbsp;</li>



<li><strong>Preliminary approval:&nbsp;</strong>Applicants usually receive an almost immediate preliminary decision on their 24-hour personal loan. They can confirm the loan if satisfied with the approved loan amount and annual interest rate. The lender may request additional documents to finalize the approval process.&nbsp;</li>



<li><strong>Loan disbursement:&nbsp;</strong>After final approval, applicants can confirm and withdraw the loan from the designated account.</li>
</ul>



<h3 class="wp-block-heading">FAQs for applying for a 24-hour personal loan</h3>



<p>Regardless of how urgently you need to borrow money when using a 24-hour cash turnover loan product, you must be cautious. Here are some common questions:</p>



<div class="schema-faq wp-block-yoast-faq-block"><div class="schema-faq-section" id="faq-question-1681274752397"><strong class="schema-faq-question">How can I obtain a better loan interest rate?</strong> <p class="schema-faq-answer">Virtual bank loans generally have lower annual interest rates than financial companies. Of course, many factors affect the loan interest rate. Borrowers should compare the actual annual interest rate (APR) before deciding.</p> </div> <div class="schema-faq-section" id="faq-question-1681274762025"><strong class="schema-faq-question">Can I really get a loan within 24 hours? </strong> <p class="schema-faq-answer">A 24-hour personal loan means that the application is accepted within 24 hours, and it does not promise approval and disbursement of the loan within 24 hours. Applicants may not be guaranteed to obtain the cash within 24 hours. Generally speaking, if the loan institution indicates that it is approved through big data or intelligent systems, the approval time will be shorter due to reduced manual operations. If time is tight, consider borrowing money from virtual banks such as <a href="https://www.planto.hk/zh/blog/ZA-bank-loan/">ZA Bank</a> and <a href="https://www.planto.hk/en/airstar/">Airstar</a>, or lenders such as <a href="https://www.planto.hk/zh/blog/grantit-review/">Grantit</a> and <a href="https://www.planto.hk/zh/blog/x-wallet-loan/">X Wallet,</a> which usually provide quick results.</p> </div> <div class="schema-faq-section" id="faq-question-1681274851352"><strong class="schema-faq-question">Can I borrow money on Saturdays, Sundays, public holidays, or late at night? </strong> <p class="schema-faq-answer">24-hour personal loans provide uninterrupted services so that money can be borrowed on Saturdays, Sundays, public holidays, or late at night. However, as mentioned above, some institutions only accept applications within 24 hours, but approval and disbursement can only be completed during office hours. Therefore, applicants should carefully check the details before applying.</p> </div> <div class="schema-faq-section" id="faq-question-1681274860910"><strong class="schema-faq-question">What financial fees should I pay attention to? </strong> <p class="schema-faq-answer">Before applying for a personal loan, you must consider whether the loan institution will charge administrative fees, prepayment fees, etc. In addition, if the borrower fails to repay the loan on time, a penalty may be charged. Remembering the government&#8217;s call is also important: &#8220;You have to repay your loans. Don&#8217;t pay any intermediaries.&#8221;</p> </div> </div>



<p><em>To borrow or not to borrow? Borrow only if you can repay!</em></p>


Virtual bank loans generally have lower annual interest rates than financial companies. Of course, many factors affect the loan interest rate. Borrowers should compare the actual annual interest rate (APR) before deciding.

A 24-hour personal loan means that the application is accepted within 24 hours, and it does not promise approval and disbursement of the loan within 24 hours. Applicants may not be guaranteed to obtain the cash within 24 hours. Generally speaking, if the loan institution indicates that it is approved through big data or intelligent systems, the approval time will be shorter due to reduced manual operations. If time is tight, consider borrowing money from virtual banks such as <a href="https://www.planto.hk/zh/blog/ZA-bank-loan/">ZA Bank</a> and <a href="https://www.planto.hk/en/airstar/">Airstar</a>, or lenders such as <a href="https://www.planto.hk/zh/blog/grantit-review/">Grantit</a> and <a href="https://www.planto.hk/zh/blog/x-wallet-loan/">X Wallet,</a> which usually provide quick results.

Can I really get a loan within 24 hours? 

24-hour personal loans provide uninterrupted services so that money can be borrowed on Saturdays, Sundays, public holidays, or late at night. However, as mentioned above, some institutions only accept applications within 24 hours, but approval and disbursement can only be completed during office hours. Therefore, applicants should carefully check the details before applying.

Can I borrow money on Saturdays, Sundays, public holidays, or late at night? 

Before applying for a personal loan, you must consider whether the loan institution will charge administrative fees, prepayment fees, etc. In addition, if the borrower fails to repay the loan on time, a penalty may be charged. Remembering the government's call is also important: "You have to repay your loans. Don't pay any intermediaries."

What financial fees should I pay attention to? 

Get the answers to common questions about 24-hour personal loans, including how to find better interest rates, loan approval times, and additional financial fees.

24-Hour Personal Loans: What to Know Before Borrowing Emergency Cash


<p>Buying a cozy nest for you and your family is the first step towards a happy and fulfilling life. After successfully purchasing a property, your budget may be tight, making it necessary to save money during the home renovation process.</p>



<p>In Hong Kong, the cost of renovating and furnishing a 300-square-foot unit typically ranges from a hundred thousand to several hundred thousand Hong Kong dollars. However, with numerous home renovation and interior design options, prices vary significantly depending on the chosen design style, materials, and renovation company. First-time renovators may need help determining where to begin.&nbsp;</p>



<p>If you&#8217;re looking for renovation quotes, don&#8217;t miss the following 12 money-saving tips to help you plan your renovation and avoid unnecessary expenses.</p>



<h2 class="wp-block-heading">1) Get More Quotations and Compare the Prices</h2>



<figure class="wp-block-image is-resized"><img decoding="async" src="https://images.unsplash.com/photo-1489171078254-c3365d6e359f?ixlib=rb-0.3.5&amp;ixid=eyJhcHBfaWQiOjEyMDd9&amp;s=fe3391048aa6a5e7e0675015330416e8&amp;w=1000&amp;q=80" alt="photo of flat screen television" width="500" height="282"/><figcaption class="wp-element-caption"><em>▲Getting quotes for the same design from different companies can result in significant price differences.</em></figcaption></figure>



<p>Just as you viewed multiple properties before deciding, do the same for home renovation. Even with the same unit and requirements, quotes from different renovation companies may vary significantly. So, take your time and contact several contractors or designers for on-site quotes. Ask friends and family for reliable home renovation or design company recommendations to avoid going in blindly.</p>



<p>Some local home renovation platforms in Hong Kong where you can get a quote include:&nbsp;</p>



<ul>
<li>SPACEPLAN</li>



<li>CallSiFu</li>



<li>CoDECO</li>



<li>CFUGO</li>



<li>HK Decoman</li>



<li>Decoration2</li>
</ul>



<h2 class="wp-block-heading">2) Detailed Quotes Offer Better Reliability</h2>



<p>Some traditional home renovation contractors may quote a price like &#8220;HK$300,000&#8221; without much detail. To protect yourself, request a detailed quote specifying every aspect, such as:</p>



<ul>
<li>Kitchen and built-in cabinet dimensions and materials</li>



<li>Whether each renovation item includes labor and materials</li>



<li>Things you need to purchase separately</li>



<li>Built-in cabinet styles, colors, and board thickness</li>



<li>Paint brands and colors</li>



<li>Number of electrical sockets</li>



<li>Renovation insurance arrangements</li>



<li>Project completion date</li>
</ul>



<p>You should insist on adding details to contracts before signing and paying the deposit to avoid disputes after the work begins.</p>



<h2 class="wp-block-heading">3) With or Without an Interior Designer?</h2>



<p>Hiring a designer to oversee your home renovation offers the benefit of having someone handle the design, material selection, and project supervision. However, this option can be expensive. Generally, designers will measure your space, create initial sketches and quotes, and provide 3D color renderings after multiple revisions. This process can take up to a month from property handover to the actual renovation start.</p>



<p>If you have ample time, energy, home renovation and furnishing knowledge, and a clear vision for your dream home, consider hiring a home renovator or contractor without design service (Hong Kongers usually call them a CFU).&nbsp;</p>



<p>While these contractors may not provide 3D designs or much design advice, they typically have extensive knowledge of materials and electrical work, and most importantly, you can save on design fees.</p>



<h2 class="wp-block-heading">4) Are Built-in Furniture Pieces Necessary?</h2>



<p>Many small-space design case studies feature extensive built-in furniture for increased storage. However, custom-built furniture is often more expensive and makes the space cramped.</p>



<p>Consider whether you really need every inch of your home for storage. Installing built-in cabinets in a narrow corridor may obstruct passage; storage areas underneath a bed can be challenging to access, and window storage units can block the view. Instead, focus on decluttering and releasing space in your home, which can make you more delightful than filling the space with storage units.</p>



<h2 class="wp-block-heading">5) Smart Use of Credit Card Rewards and Installment Plans</h2>



<p>Renovating a home can be expensive, so utilizing interest-free and installment plans offered by renovation and design companies can help reduce one-time expenses. Credit cards are also great money-saving tools, helping you earn cashback when purchasing furniture and enjoy interest-free or low-interest installment repayments. Cards like livi PayLater, HSBC Red, and PrimeCredit EarnMORE are simple and offer impressive cashback amounts.</p>



<h2 class="wp-block-heading">6) Warehouse Sales and Expos</h2>



<p>In Hong Kong, there are ways to save money on furniture and appliances. The most convenient method is to buy store display items, although not everyone may be comfortable with that. You can search Google for furniture stores or appliance brands holding warehouse sales or promotions. You can find many discounted items if there is a furniture expo.</p>



<h2 class="wp-block-heading">7) Online Shopping for Overseas Products</h2>



<p>Purchasing brand-name appliances, kitchenware, faucets, mattresses, and other items in Hong Kong often costs significantly more than buying them in their countries of origin. As a result, savvy homeowners may choose to shop online for overseas products. Many foreign companies provide direct shipping or forwarding services to Hong Kong.&nbsp;</p>



<p>For example, ordering a popular Dyson vacuum cleaner from a UK or German website may be half the price, even with shipping fees, compared to buying it in Hong Kong. However, be aware that some online parallel imported products may not have warranties in Hong Kong, so weigh the risks. When using proxy-buying and forwarding services, pay attention to insurance and protection clauses to avoid losses due to product damage during shipping.</p>



<p>Furthermore, the electrical specifications of products from Japan, the US, and Taiwan may differ from those in Hong Kong, so online appliances may not be suitable for use in Hong Kong. Global standards generally apply for renovation materials like floor tiles, ceramic tiles, and sanitary ware, so feel confident shopping for foreign products online.</p>



<p>If you&#8217;re still hesitant about shopping on foreign websites like Amazon, consider the following local or overseas platforms that cater specifically to Hong Kong customers, offering convenient communication and more excellent protection for consumers:</p>



<p>Amazon is a global e-commerce platform that offers a vast selection of furniture from overseas, providing Hong Kong customers with a convenient and cost-effective way to purchase unique, high-quality items not readily available locally.</p>



<ul>
<li><strong>Amazon:</strong>&nbsp;Amazon is a global e-commerce platform that offers a vast selection of furniture from overseas, providing Hong Kong customers with a convenient and cost-effective way to purchase unique, high-quality items not readily available locally.</li>



<li><strong>Live A Life Home:&nbsp;</strong>Japanese solid wood furniture specialist offering sofas, tables, chairs, TV cabinets, and storage cabinets.</li>



<li><strong>ImportAppliances:</strong>&nbsp;Importing European kitchen appliances from brands like Bosch, Siemens, and Smeg</li>
</ul>



<h2 class="wp-block-heading">8) Buying from Mainland China</h2>



<p>Although not everyone may favor made-in-China products, the fact remains that many of the renovation materials and furniture available in Hong Kong&#8217;s market are manufactured in China. Even custom-made furniture is primarily made in China and then shipped to Hong Kong for assembly. Since there&#8217;s no way to avoid it, why not also explore what China offers?&nbsp;</p>



<p>Ordering mainland Chinese renovation materials and furniture through Taobao is the easiest and quickest way. If you want to see the products in person, many people visit the Tian Bei Si Road in Shenzhen.</p>



<p>Purchasing ready-made products such as floor tiles, sanitary ware, and lighting fixtures in mainland China is generally similar in quality to those in Hong Kong, and you can easily use them in your home with no issues.&nbsp;</p>



<p>However, custom-made items like kitchen cabinets or wardrobes can sometimes lead to discrepancies in the delivered goods. Additionally, installation technicians arranged by mainland furniture stores may not be authorized to work legally in Hong Kong, potentially trapping consumers to hiring illegal workers.</p>



<h2 class="wp-block-heading">9) Seize the off-season for bargaining</h2>



<figure class="wp-block-image"><img decoding="async" src="https://media3.giphy.com/media/2tNx1Lh7S3bIsiHrUn/giphy.gif?cid=3640f6095bd6a676475975376724fc33" alt="john crist comedy GIF by Interstellardesignz"/><figcaption class="wp-element-caption"><em>▲The off-peak and peak seasons affect the interior design and home renovation fees.</em></figcaption></figure>



<p>When is the best time of year to do home renovation? You must consider doing it in the off-season if you wish to reduce the cost. Influenced by traditional customs, many people prefer to complete renovations before the Lunar New Year to move into their new homes during the holiday. As a result, the year-end is the peak season for renovations, with many companies busy and less room for negotiation. </p>



<p>On the other hand, after the Lunar New Year, as the off-season begins, renovation companies may lower their prices or even offer discounts, creating a good opportunity for bargaining.</p>



<h2 class="wp-block-heading">10) Making the Most of Existing Decorations</h2>



<p>When buying a property, you also acquire the previous owner&#8217;s decorations and part of the furniture and appliances. If the existing stuff aligns with your preferences, it can save you money significantly.&nbsp;</p>



<p>Having sufficient funds for a complete renovation is ideal, but if you want to save money, you may need to settle for less and preserve some of the previous owner&#8217;s decorations. You might not need to redo the plumbing or wiring if the property is young enough. Minor features like wall socket covers, exhaust fans, door locks, and kitchen or bathroom ceiling lights may not make much difference when replaced and might not even be noticeable, so consider not changing them.</p>



<h2 class="wp-block-heading">11) Considering Long-term Maintenance</h2>



<figure class="wp-block-image"><img decoding="async" src="https://media0.giphy.com/media/lVBtp4SRW6rvDHf1b6/giphy.gif?cid=3640f6095bd6a9677452557363801eac" alt="water fix it GIF"/><figcaption class="wp-element-caption"><em>▲During renovations, consider long-term home maintenance and don&#8217;t solely focus on aesthetic design.</em></figcaption></figure>



<p>After completing home renovations, you and your family may live in the home for ten years or longer, so it&#8217;s essential to consider future maintenance costs. If your residence is located in a humid area of Hong Kong, like the eastern or southern coastal regions, opt for moisture-resistant materials for paint and wardrobes.&nbsp;</p>



<p>When choosing bright lighting and appliances, consider whether it will be difficult to find replacement parts and repair services in the future. Select standard-sized brands for built-in appliances or stovetops to avoid modifying cabinets when replacing them.</p>



<p>During renovations, prioritize the quality of materials and products to reduce potential future maintenance costs. Investing in more expensive but durable items can lead to long-term savings.</p>



<h2 class="wp-block-heading">12) Applying for Home Renovation Loans</h2>



<p>Some banks offer &#8220;home renovation loans,&#8221; a type of&nbsp;<a target="_blank" href="https://www.planto.hk/en/blog/personal-loan-APR-comparison/" rel="noreferrer noopener">personal loan</a>&nbsp;characterized by higher loan amounts, up to HK$1.2 million, and repayment periods similar to traditional personal loans, with a maximum of 60 months. However, the annual interest rate for renovation loans starts at over 4%, slightly higher than regular low-interest personal loans.</p>



<p>If you prefer a lower interest rate, consider standard personal loans from banks, with annual interest rates as low as around 2%, mainly through online loan products from virtual banks, which may offer more promotions and benefits.</p>



<p>If your renovation coincides with the tax season (from October to April), you can apply for bank tax season loans, with many options available for annual interest rates below 2%. However, the loan amount limits for standard personal or tax loans are typically around 12 to 24 months, which may not be sufficient to cover more expensive home renovation or interior design costs.</p>



<loan-table> language=&#8221;en&#8221; </loan-table>


Discover cost-effective home renovation tips, including leveraging credit card rewards, warehouse sales, overseas online shopping, and financing options and more. 






Home Renovation Cost 2023: 12 Money-Saving Tips for Hong Kongers


<p>As the Federal Reserve in the United States sharply raised interest rates, the global financial markets were in turmoil. Several large banks collapsed, and funds flowed heavily into safe-haven assets. Gold became highly sought-after and approached historic highs per ounce. As an investment with considerable potential for appreciation, are you interested in learning more about gold?</p>



<p>Investors who are interested in gold can choose to purchase physical gold or explore alternatives such as gold ETF and paper gold.</p>



<figure class="wp-block-image size-large"><img decoding="async" width="1024" height="516" src="http://34.92.107.50/wp-content/uploads/2023/03/螢幕擷取畫面-2023-03-21-152210-1-1024x516.png" alt="" class="wp-image-28306" srcset="https://d3pwh2ime6p0el.cloudfront.net/wp-content/uploads/2023/03/螢幕擷取畫面-2023-03-21-152210-1-1024x516.png 1024w, https://d3pwh2ime6p0el.cloudfront.net/wp-content/uploads/2023/03/螢幕擷取畫面-2023-03-21-152210-1-300x151.png 300w, https://d3pwh2ime6p0el.cloudfront.net/wp-content/uploads/2023/03/螢幕擷取畫面-2023-03-21-152210-1-768x387.png 768w, https://d3pwh2ime6p0el.cloudfront.net/wp-content/uploads/2023/03/螢幕擷取畫面-2023-03-21-152210-1-1200x605.png 1200w, https://d3pwh2ime6p0el.cloudfront.net/wp-content/uploads/2023/03/螢幕擷取畫面-2023-03-21-152210-1.png 1452w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Gold price has been on the rise in the past month. Source: TradingView</figcaption></figure>



<h2 class="wp-block-heading">Will Gold Prices Continue to Soar in 2023?</h2>



<p>As we step into 2023, the tensions between Russia and Ukraine continue to escalate. Shortly thereafter, several major banks such as Silicon Valley Bank, First Republic Bank, Signature Bank, and Credit Suisse suddenly collapsed, causing the market&#8217;s risk aversion sentiment to soar. A large number of funds poured into the safe-haven gold market, driving the spot gold price close to $2,000 per ounce, approaching the historical high of $2,070 per ounce. </p>



<p>Currently, the rise in gold prices is attributed to the weakening of the US dollar and the increasing pressure on the global banking system, leading to a large influx of funds into safe-haven assets. This trend may continue until the end of March 2023. </p>



<p>However, if investor confidence increases, it may reverse the current situation. The turning point may depend on the Federal Reserve&#8217;s interest rate meeting on March 23. if dovish sentiment prevails, gold will likely benefit, while a neutral or hawkish stance may cause gold prices to fall.</p>



<p>While gold can offer a stable store of value in uncertain times, it is crucial to remain vigilant about the market’s ever-changing landscape and the potential reversals in trends.</p>



<h2 class="wp-block-heading"><strong>Physical gold: proper maintenance is required to preserve the value</strong></h2>



<p>Physical gold comes in various forms such as gold nuggets, gold bars and jewelries/accessories. One advantage of physical gold investment over other options is the fact that investors get to own something that they can see and touch.</p>



<p>Investors from the older generation like to visit gold shops to purchase or make accessories for the purpose of investment or value preservation, however purchasing gold jewelries or accessories typically include additional fees such as design, making and wastage charges.</p>



<p>One convenient way to invest in physical gold is to invest directly through retail banks. Many banks in Hong Kong such as Bank of China, Hang Seng Bank, Wing Lung Bank, Shanghai Commercial Bank etc. offer physical gold trading service. However, investors should be mindful that not all bank branches stock gold so it would be best to make a phone call before making a visit.</p>



<p>Physical gold also requires storage and proper maintenance as any damage would affect the gold’s value. Investors may explore vault service for storage and safety.</p>



<h2 class="wp-block-heading"><strong>Paper gold: low barrier to entry but be cautious when selecting service provider</strong></h2>



<p>Gold passbook account or paper gold is an alternative for investors who do not wish to deal with physical assets. While investors can trade gold on a passbook account, there is no actual buying or selling of physical gold – this also means physical gold can not be withdrawn from the account either. The passbook accounts only record gold deposits and trades, hence the investors will not be getting any interest income from the bank. The only way to make money from paper gold investment is through price appreciation as the price of paper gold fluctuates with the gold market. One other benefit of paper gold investment is its low barrier to entry as the minimum transaction amount can be very low.</p>



<p>The value of paper gold depends entirely on the gold passbook account, this makes the credibility of financial institutions or banks who offer this service extremely important. For example, in an unlikely event of bankruptcy, the value of paper gold held in the passbook account may return to nothing. &nbsp;</p>



<h2 class="wp-block-heading"><strong>Gold ETF: Low barrier to entry, high transparency and liquidity, watch out for management fee</strong></h2>



<p>Investors who are interested in both gold and the stock market can choose to either invest in gold related companies or explore gold ETFs. Gold ETFs are gold related funds which offer high transparency and liquidity when it comes to gold investment. Gold ETFs that are currently available on the Hong Kong Stock Exchange include SPDR Gold ETF (2840), Value Gold ETF (3081) and Hang Seng RMB Gold ETF (83168). Gold ETFs are backed by gold commodity, this means when an investor purchases gold ETF, the issuer will buy physical gold of corresponding value and place it in a high security vault.</p>



<p>Apart from being listed in Hong Kong, SPDR Gold ETF is also listed in the U.S. and Japan which are considered more international markets. Value Gold ETF is issued by a Hong Kong asset management company called Value Partners. The Hang Seng RMB Gold ETF is issued by Hang Seng Investment Management, however this requires RMB for trading.</p>



<figure class="wp-block-image size-large"><img decoding="async" width="1024" height="342" src="https://d3pwh2ime6p0el.cloudfront.net/wp-content/uploads/2023/03/WhatsApp-Image-2023-03-22-at-11.18.43-AM-1-1024x342.jpeg" alt="" class="wp-image-28307" srcset="https://d3pwh2ime6p0el.cloudfront.net/wp-content/uploads/2023/03/WhatsApp-Image-2023-03-22-at-11.18.43-AM-1-1024x342.jpeg 1024w, https://d3pwh2ime6p0el.cloudfront.net/wp-content/uploads/2023/03/WhatsApp-Image-2023-03-22-at-11.18.43-AM-1-300x100.jpeg 300w, https://d3pwh2ime6p0el.cloudfront.net/wp-content/uploads/2023/03/WhatsApp-Image-2023-03-22-at-11.18.43-AM-1-768x257.jpeg 768w, https://d3pwh2ime6p0el.cloudfront.net/wp-content/uploads/2023/03/WhatsApp-Image-2023-03-22-at-11.18.43-AM-1-1200x401.jpeg 1200w, https://d3pwh2ime6p0el.cloudfront.net/wp-content/uploads/2023/03/WhatsApp-Image-2023-03-22-at-11.18.43-AM-1.jpeg 1477w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Price of SPDR Gold ETF (2840) is rising following the rise in gold price. Source: Tiger Trade</figcaption></figure>



<p>According to the price on 20<sup>th</sup> March 2023, Value Gold ETF costs about HK$43.32per share, and 1 lot consists of 100 shares – which means HK$4,332 per lot. On the U.S. exchange, GLD ETF share price in the same period is US$183.84 per share with no lot restriction. With gold ETFs, casual or new retail investors can participate in the gold market with funds as low as HK$1,000. One thing to note however is ETFs generally have management fees, but they typically do not exceed 1%. </p>



<p>Participation in the stock market always involves risk. Gold ETFs in Hong Kong do not have hedging mechanisms so whenever gold price drops, the price of gold ETFs will also follow.</p>



<h2 class="wp-block-heading"><strong>Explore overseas Gold ETFs</strong></h2>



<p>While there may only be a few gold ETFs in Hong Kong, the concept of gold backed ETFs have been popular in the U.S. and Europe for the past decade. There are close to 100 gold ETFs registered around the world and Hong Kong investors can easily explore them through some of the local and international brokerage platforms.&nbsp;</p>



<hr class="wp-block-separator has-css-opacity"/>



<h2 class="wp-block-heading"><strong>Free stock offers from brokerages</strong></h2>



<p>Many investors invest in gold ETFs through the Hong Kong or U.S. stock exchanges to take advantage of high liquidity. The following are some of the popular welcome offers from stock brokerages:</p>



<figure class="wp-block-table"><table><tbody><tr><td><strong>Securities Firm</strong></td><td><strong><a href="https://www.planto.hk/en/blog/SoFi-Hong-Kong-Broker-Review/">SoFi HK</a></strong></td><td><strong><a href="https://www.planto.hk/zh/blog/uSMART-brokers-review/">uSMART Securities</a></strong></td><td><strong>9F Securities</strong></td><td><strong><a href="https://www.planto.hk/zh/blog/futu-brokers-review/">Futu Securities</a></strong></td></tr><tr><td><strong>Free Stock Offers and Conditions</strong></td><td>Earn 20 SoFi points after account opening. Get more points through various activities and exchange them for free SnapChat, Twitter or Coca Cola shares.</td><td>1 share of Jiumaojiu after account opening<br><br>2 shares of Peijia Medical if first-time deposit &gt; HK$20,000<br><br>2 shares of Ping An Good Doctor if first transaction is over HK$500 and assets under management amount reach HK$100,000 or above within 30 days upon account activation</td><td>Get 2 and up to 10 shares of CLP Holdings after depositing a minimum of HK$20,000</td><td>Get 1 share of HSBC and Tencent each after depositing HK$20,000 or more</td></tr><tr><td><strong>Other Offers</strong></td><td>⭐️No commission and platform free for U.S. and Hong Kong stock trading</td><td>⭐️Zero commission plan for U.S. and Hong Kong stock trading</td><td>⭐️0 platform fee and transaction fee for HK stocks.<br><br>⭐️Free 30-day trial for LV2 streaming.</td><td>⭐️HK$100 supermarket gift voucher<br>Life long commission free Hong Kong stock trading</td></tr><tr><td><strong>More Details</strong></td><td><a href="https://www.planto.hk/en/redirect/?params=eyJwcm9kdWN0IjoiZWlnaHRzZWN1cml0aWVzX3NvZmkiLCJ0eXBlIjoiaW52ZXN0bWVudF9icm9rZXIiLCJhcHBseVVybCI6Imh0dHBzOi8vZ28ub25lbGluay5tZS8xdFZvP3BpZD1QbGFudG8mYz1QbGFudG9fU29GaUhvbmdLb25nJmFmX3dlYl9kcD1odHRwcyUzQSUyRiUyRnd3dy5zb2ZpLmhrJTJGd2ViJTJGemgtaGFudCUyRm9wZW4tYWNjb3VudCUyRiUzRnV0bV9zb3VyY2UlM0RQbGFudG8lMjZ1dG1fbWVkaXVtJTNEQWZmaWxpYXRlcyUyNnV0bV9jYW1wYWlnbiUzRFBsYW50byIsImZyb20iOiJicm9rZXIgd2VsY29tZSBvZmZlciB0YWJsZSB0YWJsZSJ9">Visit Broker</a></td><td><a href="https://www.planto.hk/en/redirect/?params=eyJwcm9kdWN0IjoidXNtYXJ0X2Jyb2tlciIsInR5cGUiOiJpbnZlc3RtZW50X2Jyb2tlciIsImFwcGx5VXJsIjoiaHR0cHM6Ly91c21hcnRzZWN1cml0aWVzLmNvbS9BZmZpbGlhdGUvdC9OciIsImZyb20iOiJicm9rZXIgd2VsY29tZSBvZmZlciB0YWJsZSB0YWJsZSJ9">Visit Broker</a></td><td><a href="https://www.planto.hk/en/redirect/?params=eyJwcm9kdWN0IjoiOUZfYnJva2VyIiwidHlwZSI6ImludmVzdG1lbnRfYnJva2VyIiwiYXBwbHlVcmwiOiJodHRwczovL3d3dy45ZnN0b2NrLmNvbS9uZXctb3Blbi1zdG9jay5odG1sP2NoYW5uZWxJZD01NTUmdXRtX3NvdXJjZT0zcmQtemh1Y2UmdXRtX21lZGl1bT1wbGFudG8iLCJmcm9tIjoiYnJva2VyIHdlbGNvbWUgb2ZmZXIgdGFibGUgdGFibGUifQ==">Visit Broker</a></td><td><a href="https://www.planto.hk/en/redirect/?params=eyJwcm9kdWN0IjoiZnV0dV9zZWN1cml0aWVzIiwidHlwZSI6ImludmVzdG1lbnRfYnJva2VyIiwiYXBwbHlVcmwiOiJodHRwczovL3Bhc3Nwb3J0LmZ1dHU1LmNvbS9zZW0vaGs/bGFuZGluZ0lkPTMmY2hhbm5lbD02NDIiLCJmcm9tIjoiYnJva2VyIHdlbGNvbWUgb2ZmZXIgdGFibGUgdGFibGUifQ==">Visit Broker</a></td></tr></tbody></table><figcaption>The above offers are limited time offers and they are subjected to periodical updates. Latest offer information can be found on securities firm’s websites.</figcaption></figure>



<h4 class="wp-block-heading">Recommended Readings</h4>



<ul>
<li><a href="https://www.planto.hk/en/blog/free-stocks-brokers-welcome-offer/">Welcome Offer Comparison: Get Free Blue-Chip Stocks With New Investment Accounts</a></li>



<li><a href="https://www.planto.hk/en/blog/Portfolio-Diversification-Investment/">Investment Strategy Guide to building a diversified portfolio</a></li>



<li><a href="https://www.planto.hk/en/blog/Valuable-Capital-Broker-Review/">Valuable Capital Review:&nbsp;Commission-free HK stock trading, free real-time quotes</a></li>



<li><a href="https://www.planto.hk/en/blog/futu-brokers-review/">Futu Securities Review</a></li>



<li><a href="https://www.planto.hk/en/blog/saxo-bank-review-offshore-account/">Saxo Bank Review: A Simple Offshore Banking &amp; Trading Solution for Hong Kongers</a></li>
</ul>



<p style="font-size:16px"><strong>Important information:</strong></p>



<p style="font-size:16px">Investment involves risks. This information is intended to be educational and is not tailored to the investment needs of any specific investor. This information does not constitute investment advice and should not be used as the basis for any investment decision nor should it be treated as a recommendation for any investment or action. Past performance is no guarantee of future results. The value of investments and the income from them can go down as well as up, so you may not get back what you invest.</p>


Investors who are interested in gold can choose to purchase physical gold or explore alternatives such as gold ETF and paper gold.

Investing in gold, gold ETF and paper gold: Pro, con and low barrier to entry alternatives


<p>Fresh graduates have gradually entered the workforce and are beginning to contribute 5% of their monthly salary to their Mandatory Provident Fund (MPF) accounts. Many people believe that MPF can only be withdrawn after retirement and, as a result, may not pay much attention to it.</p>



<p>However, the truth is that managing your MPF account properly and early on can lead to significant wealth accumulation through the power of compound interest. Therefore, fresh graduates should take their MPF accounts seriously from their first job onwards.</p>



<h2 class="wp-block-heading">Is MPF Mandatory in Hong Kong?</h2>



<p>According to the law, all employees between 18 and 64 years of age who have been employed for at least 60 days, whether full-time or part-time, must participate in an MPF scheme. The minimum contribution amount is 5% each from the employer and employee, with respective caps of HK$1,500. If an employee&#8217;s monthly income is less than HK$7,100, the employee is not required to make contributions. However, the employer still has to contribute 5% of the employee&#8217;s monthly salary.</p>



<p>Employees are entitled to a contribution holiday during the first 30 days of employment and the first incomplete salary cycle. In other words, many workers do not need to contribute to the MPF for the first two paychecks, but the employer will still contribute on their behalf.</p>



<p>According to statistics released by the MPFA in March 2022, 77% of the employed population in Hong Kong is covered by the MPF scheme.</p>



<h2 class="wp-block-heading">Why is MPF Important?</h2>



<figure class="wp-block-image is-resized"><img decoding="async" src="https://images.unsplash.com/photo-1508963493744-76fce69379c0?ixlib=rb-0.3.5&amp;ixid=eyJhcHBfaWQiOjEyMDd9&amp;s=6208a3203071968105278c7d0c15587b&amp;w=1000&amp;q=80" alt="man and woman sitting on bench facing sea" width="500" height="334"/><figcaption class="wp-element-caption"><em>▲</em>MPF is a long-term investment that affects retirement life and should be managed with caution.</figcaption></figure>



<p>MPF is a long-term investment closely related to retirement life and should be managed carefully. Since the implementation of the MPF system, the average rate of return of the funds after deducting expenses is 4.4%.</p>



<p>Assuming that you start working at the age of 23 with a starting salary of HK$15,000 and an average annual salary increase of 3.8% (based on the average of the past 10 years according to the Census and Statistics Department), according to the MPF accumulative benefits calculator provided by the MPFA, you can obtain the following benefits from the MPF upon retirement:</p>



<p>If the annual rate of return of the MPF remains at 4.4%, you can receive a total of HK$4.09 million (principal and interest) upon retirement at the age of 65. If your MPF outperforms the market and the rate of return reaches 8%, you can receive nearly HK$9.82 million upon retirement. However, if your MPF underperforms and the rate of return is only 2%, you can only receive about HK$2.5 million upon retirement.</p>



<p>Based on the average inflation rate of 3.2% over the past 10 years, HK$9.82 million, HK$4.09 million, and HK$2.5 million are only worth about HK$2.56 million, HK$1.06 million, and HK$660,000 today, which may not be sufficient to meet your retirement needs. You may still need savings and investments outside of MPF.</p>



<p>Nevertheless, it is clear that managing MPF properly can significantly enhance retirement funds. Young people have a high chance of receiving accumulative MPF benefits of millions of dollars after retirement. On the other hand, neglecting MPF will only make the already insufficient returns for retirement even more challenging.</p>



<h2 class="wp-block-heading">What are the 5 types of MPF and their Risk Levels? </h2>



<p>MPF can be divided into the following 5 categories, ranked from high to low risk:</p>



<ol>
<li><strong>Equity funds: </strong>Equity funds have higher risks and potential returns. They invest in single regions, areas, or global stock markets, such as Hong Kong equity funds, Asia equity funds, and international equity funds. The fund&#8217;s performance in stock markets and currency exchange rates influence stock market fluctuations.</li>



<li><strong>Mixed-asset funds: </strong>Mixed-asset funds have medium-to-high risks and primarily invest in stocks and bonds to diversify risks—generally, the higher the proportion of stocks, the higher the risk.</li>



<li><strong>Bond funds: </strong>Bond funds have medium-to-low risks and invest in bonds or debt instruments issued by governments, banks, commercial institutions, or international organizations such as the World Bank. Returns mainly come from bond interest income or profits from buying and selling bonds on the market. Bond prices may fall during interest rate hikes, and factors like exchange rate fluctuations and credit ratings can affect returns.</li>



<li><strong>Guaranteed funds:</strong> Guaranteed funds have relatively low risks and offer guarantees such as the minimum return on capital for plan members. However, most have conditions such as failure to meet the required number of contributions, withdrawals, or plan conversion within a specified period that could render the guarantee void.</li>



<li><strong>Conservative funds: </strong>Conservative funds have relatively low risks and mainly invest in Hong Kong dollar assets such as short-term bank deposits and bonds. The goal is to earn returns equivalent to Hong Kong dollar savings deposit interest rates. Although the risk is low, it may fall behind inflation.</li>
</ol>



<h2 class="wp-block-heading">MPF Tax Deductible Voluntary Contributions</h2>



<p>Apart from the mandatory contribution of 5% of their salary, employees can also make voluntary contributions to enhance their savings. These contributions can be divided into three categories: employee voluntary contributions, special voluntary contributions, and tax-deductible voluntary contributions. </p>



<p>Since the MPF is a long-term investment, even if an employee contributes an additional 1% of their salary each month, the effect of compounding interest can significantly increase their assets over time.</p>



<p>Use the Mandatory Provident Fund Calculator now to see how voluntary contributions can impact your retirement savings:</p>



<p><compounded-investment-calculator language="en" type="CONTRIBUTION" calculatorname="mpfFreshmanGuideline_zh MPF Calculator"></compounded-investment-calculator></p>



<h2 class="wp-block-heading">How to Allocate Your MPF Investment Portfolio?</h2>



<p>MPF is a long-term investment that can last for decades. Young professionals with the time to withstand market fluctuations often choose equity or mixed-asset funds with higher returns. However, high returns also mean high risks, and employees should carefully consider their risk tolerance. Diversifying investments can reduce risk.</p>



<p>If no specific instructions are given, the fund will be managed according to the &#8220;Default Investment Strategy&#8221; (DIS), commonly known as the &#8220;lazy fund.&#8221;</p>



<p>To gain a deeper understanding of a fund&#8217;s background, investment performance, fees, and other details, you should read the Fund Fact Sheet or the MPF fund platform provided by the Mandatory Provident Fund Schemes Authority.</p>



<h3 class="wp-block-heading">Fund Fact Sheet</h3>



<p>Many people do not read the Fund Fact Sheet carefully when they receive it. However, the Fund Fact Sheet can help you understand important information about the fund when selecting MPF investment portfolios, including:</p>



<ul>
<li><strong>Investment policy and objectives:</strong>&nbsp;Explains whether the fund aims to maintain capital or increase assets, allowing you to know whether the fund&#8217;s investment strategy meets your expectations.</li>



<li><strong>Fund size/asset value:&nbsp;</strong>Lists the fund&#8217;s total assets minus its liabilities.</li>



<li><strong>Fund type description:</strong>&nbsp;Briefly introduces the investment region of the fund and whether it belongs to the category of stocks, bonds, or mixed assets.</li>



<li><strong>Investment portfolio distribution:&nbsp;</strong>Uses charts to show the proportion of the fund&#8217;s investment in different categories of investment tools (such as stocks and bonds) and regions (such as Japan, Europe, and Hong Kong).</li>



<li><strong>Top 10 assets:&nbsp;</strong>List the top 10 securities that comprise the highest percentage of the fund&#8217;s net asset value, reflecting how the fund is deployed and its investment strategy.</li>



<li><strong>Risk indicator (or risk label):</strong>&nbsp;Reflects the potential risk and return of the fund by measuring the fund&#8217;s volatility over the past three years. Generally, the higher the value, the higher the potential risk and return.</li>



<li><strong>Fund expense ratio:&nbsp;</strong>The fund&#8217;s total expenses as a percentage of its assets will affect investor returns.</li>



<li><strong>Fund performance:&nbsp;</strong>Shows the return rate of the fund in 1 year, 5 years, 10 years, and since its launch.</li>



<li><strong>Commentary:&nbsp;</strong>Analyzes and evaluates the fund&#8217;s performance and market trends, explains the factors considered when deploying the fund, and helps you understand the market and make investment decisions.</li>
</ul>



<h2 class="wp-block-heading">MPF Fund Platform</h2>



<p>The MPF Authority has established an <a href="https://mfp.mpfa.org.hk/eng/mpp_index.jsp">MPF Fund Platform</a>, allowing employees to quickly access basic information and the performance history of various funds. You can filter plans and fund categories and view important data such as the fund&#8217;s return rates over the past 1, 5, and 10 years and the current management fees and fund expense ratios.</p>



<p>As MPF is a long-term investment, short-term performance should not be the sole focus. If your goal is capital preservation, pay more attention to the 5-year and 10-year return rates to assess the fund&#8217;s stability.</p>



<ul>
<li><strong>Fund Fees: </strong>When selecting an MPF scheme, besides focusing on the rate of return, it is essential to pay attention to the fund fees. Otherwise, choosing a fund with high fees may significantly reduce the actual returns earned. Through the MPF fund platform provided by the MPFA (Mandatory Provident Fund Schemes Authority), you can clearly compare the fees of different funds.</li>



<li><strong>Fund Size:</strong> Large fund size does not necessarily mean better performance. In many cases, smaller funds can outperform the market. This is because large market investors often buy or sell stocks in large quantities, and the same amount of investment returns a higher percentage for smaller funds, making it easier for them to outperform the market. Of course, these types of funds may also have higher volatility.</li>
</ul>



<h2 class="wp-block-heading">How to Manage your MPF in a Bear Market?</h2>



<p>Due to political and economic factors, stock markets in China, the US, and Hong Kong have been highly volatile in recent years. So how should you manage your MPF investment portfolio during a bear market? There are two main strategies:</p>



<h3 class="wp-block-heading">Stable Approach – Focus on hedging:</h3>



<p>Switching from high-risk and high-return funds to a stable but lower-return combination to reduce losses during market downturns.</p>



<h3 class="wp-block-heading">Aggressive Approach – Buy low:</h3>



<p>Despite the market downturn, you can buy more fund units with the same monthly contributions, so some people expect to buy stocks with high risk and high returns at a lower price and earn more profits when the market rebounds.</p>



<h3 class="wp-block-heading">Regular Review of MPF Portfolio</h3>



<p>Employees should pay attention to and regularly review the performance and accumulated assets of their MPF funds. They should consider their risk tolerance to decide whether to change their investment portfolio and be prepared for any potential risks in advance. Be sure to seek a solution before there are significant market changes. Otherwise, if you find that your MPF performance is not as expected just before your retirement, you will regret not taking action earlier.</p>



<h2 class="wp-block-heading">What is the &#8220;Employee Choice Arrangement&#8221;?</h2>



<p>In 2012, the Mandatory Provident Fund Schemes Authority (MPFA) introduced the &#8220;Employee Choice Arrangement&#8221; (ECA), which is commonly known as the &#8220;Semi-Self-Selected&#8221; （強積金半自由行） scheme.</p>



<p>Under this scheme, employees can transfer the accrued benefits of the mandatory contribution portion of their MPF accounts to a self-selected MPF scheme once a year. However, employees cannot move the employer&#8217;s contribution portion. The new contributions made by employees will continue to be deposited into the original scheme until the following year&#8217;s transfer opportunity.</p>



<h2 class="wp-block-heading">How to Handle MPF when Starting a New Job?</h2>



<p>For new graduates, job hopping may be more frequent, and it&#8217;s important not to forget to handle the old company&#8217;s MPF account. If there are no instructions after changing jobs, the accumulated benefits of the old company&#8217;s MPF plan will be transferred to the personal account and continue to be invested.&nbsp;</p>



<p>After changing jobs several times, you may have multiple MPF personal accounts. Employees can choose to manage multiple MPF accounts simultaneously or consolidate their MPF accounts.</p>



<h3 class="wp-block-heading">Managing Multiple MPF Accounts:</h3>



<p>From an investment perspective, holding only one MPF account may not be ideal for achieving risk diversification. Distributing contributions to plans with different trustees helps balance risk. The easiest way is to link all MPF accounts to the same MPF app, greatly saving management time.</p>



<h3 class="wp-block-heading">Consolidating MPF Accounts:</h3>



<p>When consolidating MPF accounts, you can choose to:</p>



<p>Transfer old contributions to the new company&#8217;s MPF account;</p>



<p>After each job change, transfer the accumulated MPF benefits from the old company to the same personal account to easily manage fund performance and investment strategy.</p>



<p>To consolidate MPF accounts, first, fill out the consolidation form and submit it to your trustee. If you forget how many MPF accounts you have, fill out and submit an inquiry Form to the MPFA or check your MPF accounts on the MPFA&#8217;s electronic platform. The easiest way to consolidate MPF accounts is to contact the trustee and let their specialists assist you.</p>



<h2 class="wp-block-heading">Try Planto  for Free &#8211; Intelligent Finance App for MPF Management and More</h2>



<p>Download the Planto app now and enjoy a 3-month free trial. After that, the app costs HK$38 per month or HK$388 per year. Planto users can enjoy the convenience of minimalist finance management and receive exclusive offers and financial education content.</p>



<planto-button link="https://www.planto.hk/en/redirect/?params=eyJwcm9kdWN0IjoiUGxhbnRvX0FwcCIsInR5cGUiOiJQbGFudG8iLCJhcHBseVVybCI6Imh0dHBzOi8vZ28ub25lbGluay5tZS82eXkzLzRkNjk2Y2Q3IiwiZnJvbSI6IlBsYW50b19Eb3dubG9hZCJ9">Download Planto Now</planto-button>



<h3 class="wp-block-heading">Recommended Readings</h3>



<ul>
<li><a href="https://www.planto.hk/en/blog/insurance-intro/">Insurance Hong Kong 101: Life, Medical, Accident &amp; Critical Illness</a></li>



<li><a href="https://www.planto.hk/en/blog/personal-loan-APR-comparison/">Personal Loan Hong Kong: Borrow with the Best Interest Rate</a></li>



<li><a href="https://www.planto.hk/en/blog/tu-credit-report-explained/">TransUnion Credit Score: How to Improve + Everything Hong Kongers Should Know</a></li>
</ul>


Managing your MPF account properly and early on can lead to significant wealth accumulation through the power of compound interest. Learn more now!

Mastering MPF Hong Kong: Ultimate Guide to Mandatory Provident Fund Scheme


<p>When it comes to insurance in Hong Kong, it&#8217;s common for individuals to be approached by agents after entering the workforce. However, if you only have a vague understanding of insurance, making informed decisions about your insurance needs can be challenging.</p>



<p>Planto is here to explain the basic concepts of insurance to help Hong Kongers understand what life insurance, medical insurance, Voluntary Health Insurance Scheme (VHIS), personal accident insurance, and critical illness insurance are. We will also share key points to note when comparing insurance plans to help you prepare for the future and find the insurance plan that is right for you.</p>



<h2 class="wp-block-heading">What is Insurance?</h2>



<p>Risk is an objective existence, and purchasing insurance is a means of risk management that allows policyholders to transfer risk and avoid bearing all financial risk themselves. What can be insured includes the policyholder&#8217;s life, loved ones, health, and finances.</p>



<p>Hong Kong people who participate in insurance plans can make lump sum or periodic payments to purchase coverage. When the conditions and situations specified in the insurance contract are met, policyholders can make claims to the insurance company to obtain financial compensation.&nbsp;</p>



<p>Insurance has a leveraging effect, which means the compensation the policyholder receives can be several times higher than the original premium paid.</p>



<h2 class="wp-block-heading">What is the Insurance Cooling-off Period?</h2>



<p>The insurance cooling-off period was initially a regulation set by the Insurance Authority in Hong Kong for life insurance policies with longer terms because purchasing a life insurance policy is an important long-term decision. There is a 21-day cooling-off period that starts from the date the policyholder receives the insurance policy or notice of insurance, whichever is earlier.</p>



<p>The cooling-off period allows policyholders time to reflect on their insurance decision; during this period, they can change their minds. If they choose to cancel the policy, they will receive a premium refund.</p>



<p>For other types of insurance policies, the length of the cooling-off period is determined by the insurance company. Currently, most policies have a cooling-off period of 14 to 21 days, and policyholders should pay attention to the exact number of days to avoid losing their rights.</p>



<h2 class="wp-block-heading">Making Good use of Insurance Assessment Tools</h2>



<p>Before purchasing insurance, you can use various calculation tools available in the market to assess your financial situation and plan for the future. These tools can serve as the basis for your insurance purchase decision.&nbsp;</p>



<p>For instance, the Insurance Authority has launched a &#8220;<a target="_blank" href="https://education.ia.org.hk/en/tool/calculator.html" rel="noreferrer noopener">Protection Needs Assessment Tool</a>&#8221; to estimate whether your protection coverage for the next 50 years is sufficient. It is not wise to blindly believe that the larger the sum insured, the more comprehensive the protection will be. Savvy Hong Kongers should make appropriate choices based on their life stages and needs.</p>



<h2 class="wp-block-heading">Main Types of Insurance in Hong Kong: Life, Health, Accident, and Critical Illness</h2>



<p>There are various insurance products available in the market that cater to personal needs. Let&#8217;s discuss the most common types of insurance that the general public in Hong Kong usually encounter.</p>



<h2 class="wp-block-heading">Life Insurance in Hong Kong</h2>



<p>Life insurance provides a cash benefit to the designated beneficiary of the policyholder upon the insured&#8217;s death, regardless of whether the cause of death is natural or accidental. This compensation helps the beneficiary cover the unexpected financial expenses that arise after the insured&#8217;s death.</p>



<p>Life insurance is generally divided into term life insurance and whole life insurance. Term life insurance provides coverage only for a specific period, and the contract expires afterward. On the other hand, whole life insurance provides coverage until the insured reaches the age of 100, and the insurance company usually pays the benefit after the contract expires.</p>



<h2 class="wp-block-heading">Health Insurance in Hong Kong</h2>



<p>Health insurance primarily covers medical expenses related to illness or injury. Claims are reimbursed based on the actual medical costs incurred. The coverage usually includes both inpatient and outpatient medical expenses.</p>



<p>Hong Kong insurance for health typically includes coverage for inpatient and outpatient medical expenses. Inpatient coverage contains costs related to hospitalization, such as room and board, doctor&#8217;s fees, surgical fees, and miscellaneous expenses.&nbsp;</p>



<p>Outpatient coverage, on the other hand, includes costs related to visits to general practitioners, prescription drugs, and laboratory tests. Some policies may also cover expenses related to traditional Chinese medicine, physical therapy, and chiropractic care. VHIS is a type of health insurance that meets high standards set by the government to ensure good quality coverage for policyholders.</p>



<h2 class="wp-block-heading">Personal Accident Insurance in Hong Kong</h2>



<p>As the name suggests, accident insurance covers unexpected and unforeseeable bodily injuries caused by accidents. These can include car accidents, injuries caused by falling objects, and injuries sustained while riding public transportation. However, accident insurance does not cover sudden medical conditions like heart attacks. Therefore, clarifying the coverage with the insurance broker or agent before purchasing a policy is essential.</p>



<h2 class="wp-block-heading">Critical Illness Insurance in Hong Kong</h2>



<p>Critical illness insurance provides a cash benefit if the insured is diagnosed with a severe illness that threatens their life and meets the definition of critical illness specified in the policy. The policy stipulates the illnesses covered and the criteria for each illness. Common critical illnesses include cancer, heart disease, and stroke. The length of the illness can also affect the eligibility for compensation and the amount of compensation the insured can receive.</p>



<h2 class="wp-block-heading">Things to Consider When Comparing Insurance Policies</h2>



<h2 class="wp-block-heading">Premiums&nbsp;</h2>



<p>When considering insurance in Hong Kong, it is natural to focus on the price. However, it&#8217;s important to remember that insurance is a long-term expense, and consumers should evaluate policies based on their long-term financial impact.</p>



<p>To avoid bias, it&#8217;s essential to compare policies from different insurance companies using equal terms, such as the terms and coverage listed on the policy. It&#8217;s also crucial to purchase insurance that meets your needs rather than solely selecting a policy because it is cheap.</p>



<h2 class="wp-block-heading">Coverage</h2>



<p>Each policy has its coverage, and the terms and regulations listed on the policy will indicate the period during which the policy is effective, and the insured can receive compensation after a specific event or accident occurs. The coverage may differ even if it is the same type of policy.</p>



<p>In addition, you should pay attention to the amount of compensation. For example, when buying life insurance, you may not necessarily seek the maximum coverage, but you can also realize asset appreciation through life insurance with savings components. Please calculate carefully the compensation amount or expected policy value that meets your needs based on your family&#8217;s future needs.</p>



<h2 class="wp-block-heading">Exclusions&nbsp;</h2>



<p>Exclusions are a critical aspect of buying insurance in Hong Kong, referring to items or situations not covered by an insurance policy. It&#8217;s crucial to understand that no policy can cover all risks or accidents, and insurance companies use exclusions to control their risks.</p>



<p>While exclusions are rarely mentioned in insurance advertisements, they are always listed in the policy contract. It&#8217;s essential to carefully review the list of non-covered items in the policy before purchasing to avoid finding out later that you are not eligible for compensation. This can be financially detrimental and may lead to unnecessary expenses.</p>



<h2 class="wp-block-heading">FAQ About Buying Insurance in Hong Kong</h2>



<div class="schema-faq wp-block-yoast-faq-block"><div class="schema-faq-section" id="faq-question-1678948295057"><strong class="schema-faq-question">Is buying insurance from an insurance company safe and reliable? </strong> <p class="schema-faq-answer">In Hong Kong, the insurance industry is regulated by the Insurance Companies Ordinance and the Insurance Authority. Insurance companies must ensure sufficient capital, adequate claims reserves, actuarial reserves, and adequate reinsurance arrangements before they can operate.<br/><br/>Moreover, the Hong Kong government appoints appointed actuaries to insurance companies to monitor their operations internally and prevent the misreporting of risks. Insurance sales are also subject to regulation, so consumers need not worry too much.</p> </div> <div class="schema-faq-section" id="faq-question-1678948315958"><strong class="schema-faq-question">Can I file a complaint if there is a monetary dispute regarding the policy? </strong> <p class="schema-faq-answer">Apart from complaining to the insurance company where you purchased the policy, all monetary disputes related to personal policies can be queried or complained to the Insurance Complaints Bureau. Complainants must fill out a complaint form and submit it with the required document copies via mail, fax, or email. <br/><br/>Telephone number: 2520 2728 <br/>Fax number: 2520 1967 <br/>Mailing address: 29/F, Sunshine Plaza Building, 353 Lockhart Road, Wan Chai, Hong Kong <br/>Email: <a href="mailto:icb.enquiry@icb.org.hk" target="_blank" rel="noreferrer noopener">icb.enquiry@icb.org.hk</a></p> </div> </div>



<p></p>


In Hong Kong, the insurance industry is regulated by the Insurance Companies Ordinance and the Insurance Authority. Insurance companies must ensure sufficient capital, adequate claims reserves, actuarial reserves, and adequate reinsurance arrangements before they can operate.<br/><br/>Moreover, the Hong Kong government appoints appointed actuaries to insurance companies to monitor their operations internally and prevent the misreporting of risks. Insurance sales are also subject to regulation, so consumers need not worry too much.

Is buying insurance from an insurance company safe and reliable? 

Apart from complaining to the insurance company where you purchased the policy, all monetary disputes related to personal policies can be queried or complained to the Insurance Complaints Bureau. Complainants must fill out a complaint form and submit it with the required document copies via mail, fax, or email. <br/><br/>Telephone number: 2520 2728 <br/>Fax number: 2520 1967 <br/>Mailing address: 29/F, Sunshine Plaza Building, 353 Lockhart Road, Wan Chai, Hong Kong <br/>Email: <a href="mailto:icb.enquiry@icb.org.hk" target="_blank" rel="noreferrer noopener">icb.enquiry@icb.org.hk</a>

Can I file a complaint if there is a monetary dispute regarding the policy? 

Planto is here to explain the basic concepts of insurance to help Hong Kongers understand what life insurance, medical insurance, Voluntary Health Insurance Scheme (VHIS), personal accident insurance, and critical illness insurance are. 

Insurance Hong Kong 101: Life, Medical, Accident & Critical Illness


<p>Before borrowing any <a href="https://www.planto.hk/en/blog/personal-loan-APR-comparison/">personal loan</a>, you must clearly understand the borrowing costs. Planto has created a simple personal loan interest rate and repayment calculator that can calculate your monthly repayment amount and total interest expense by simply entering the loan amount, repayment period, and actual annual percentage rate (APR).</p>



<loan-repayment-calculator lang="en"></loan-repayment-calculator>



<h2 class="wp-block-heading">Explanation of Personal Loan Calculator Terminology</h2>



<h3 class="wp-block-heading">Loan Amount</h3>



<p>The loan amount refers to the total amount of money borrowed by the borrower from the lending institution. The lending institution will determine the amount of loan to be approved based on various factors such as the borrower&#8217;s income, credit history, occupation, and more. Deciding the loan amount based on personal needs and repayment capability is essential when borrowing money.</p>



<h3 class="wp-block-heading">Actual Annual Percentage Rate (APR)</h3>



<p>The actual annual percentage rate is a loan interest rate calculation method designated by the Hong Kong Association of Banks. It reflects the final rate obtained after calculating interest, handling fees, and all other costs. When all other conditions are the same, the lower the actual annual percentage rate, the lower the borrower&#8217;s loan interest expense.</p>



<p>Most banks and financial companies do not charge handling fees and finance charges to personal installment loan applicants. Therefore, interest expense is the main cost of borrowing a personal loan, and it is crucial to consider the actual annual percentage rate when choosing a loan.</p>



<h3 class="wp-block-heading">Tenor</h3>



<p>Most personal installment loans in Hong Kong require borrowers to repay monthly, which can last up to 60 months or more. A more extended tenor means lower monthly payments but higher interest costs in the long run. Conversely, the shorter tenor, the higher the monthly payments, but the lower the total interest costs.</p>



<h3 class="wp-block-heading">Monthly Repayment</h3>



<p>The monthly repayment refers to the principal and interest that the borrower pays to the lending institution each month. The lending institution uses the &#8220;78 Law&#8221; to determine the ratio of principal and interest in the repayment amount. Although the monthly repayment amount of an installment loan is fixed, the ratio of principal and interest will gradually change, with interest accounting for a higher proportion in the early stages of repayment and principal accounting for less. As the repayment progresses, the interest ratio in the repayment amount will decrease.</p>



<h3 class="wp-block-heading">Total Interest Expenses</h3>



<p>Total interest expenses refer to the actual monthly interest paid over the entire repayment period. Assuming that the loan amount and repayment term remain the same, the higher APR, the more total interest expenses will be paid.</p>



<loan-table> language=&#8221;en&#8221; </loan-table>



<h2 class="wp-block-heading">FAQs about Personal Loan Calculators</h2>



<div class="schema-faq wp-block-yoast-faq-block"><div class="schema-faq-section" id="faq-question-1678935651203"><strong class="schema-faq-question">Are there any other costs besides interest when borrowing a personal loan?</strong> <p class="schema-faq-answer">Interest expense is the main cost of a personal loan. In addition, lending institutions may charge administrative and financial fees such as handling fees, late payment penalties, and prepayment fees based on the nature of the product and the individual borrower&#8217;s loan conditions.</p> </div> <div class="schema-faq-section" id="faq-question-1678935666490"><strong class="schema-faq-question">Why do the results of personal loan calculators differ from the repayment plans offered by lending institutions?</strong> <p class="schema-faq-answer">Planto&#8217;s personal loan calculator calculates the interest rate based on the APR, while some lending institutions may include cash rebates or other discounts and loan costs in their APR, resulting in different results. Borrowers should rely on the final terms and information provided by the lending institution.</p> </div> </div>


Interest expense is the main cost of a personal loan. In addition, lending institutions may charge administrative and financial fees such as handling fees, late payment penalties, and prepayment fees based on the nature of the product and the individual borrower's loan conditions.

Are there any other costs besides interest when borrowing a personal loan?

Planto's personal loan calculator calculates the interest rate based on the APR, while some lending institutions may include cash rebates or other discounts and loan costs in their APR, resulting in different results. Borrowers should rely on the final terms and information provided by the lending institution.

Why do the results of personal loan calculators differ from the repayment plans offered by lending institutions?

Planto has created a simple personal loan interest rate and repayment calculator that can calculate your monthly repayment amount and total interest expense by simply entering the loan amount, repayment period, and actual annual percentage rate (APR).

Personal Loan Calculator: Get Monthly Repayment Estimates Now


<p><strong>👉 Borrowing Money Guide 2023: </strong>Hong Kong is still in a period of rising interest rates this year, making borrowing money a scarce opportunity. Choosing loan products requires extraordinary astuteness and caution. </p>



<p>Banks or financial companies provide online instant loans if you urgently need funds. Borrowers can receive preliminary approval within minutes and withdraw the loan within an hour. 🎁 Take a look at the table below for the borrowing promotions available:</p>



<h2 class="wp-block-heading">Comparison of Loan Interest Rates among Banks and Financial Institutions</h2>



<loan-table> language=&#8221;en&#8221; </loan-table>



<p>Life is full of ups and downs. If you&#8217;re faced with major life events such as starting a business, buying a property, furthering your education, or undergoing surgery and need immediate funding, borrowing money is the most direct solution.</p>



<p>In Hong Kong, there are many channels for borrowing loans, each with pros and cons. Below, we summarize the advantages and disadvantages of different borrowing methods, teaching you how to choose your most suitable borrowing path.</p>



<h2 class="wp-block-heading">1) Borrowing Money Through Banks and Financial Companies</h2>



<p>Nowadays, banks and financial institutions offer many private loan products, which can be broadly categorized into secured and unsecured loans. Secured loans include mortgages, cash-out refinancing, car loans, etc. These loans typically involve collateral, which allows borrowers to secure higher loan amounts and lower interest rates. The maximum amount that can be borrowed depends on the value of the collateral, and in the event of default, the lender has the right to repossess the collateral.</p>



<p>Alternatively, unsecured loans, such as tax loans, balance transfers, and&nbsp;<a target="_blank" href="https://www.planto.hk/en/blog/personal-loan-APR-comparison/" rel="noreferrer noopener">personal installment loans</a>, are also available. The loan amount that can be obtained depends on the borrower&#8217;s income and credit history. When applying for an unsecured loan, documents such as proof of income and address are typically required, and the interest rates tend to be slightly higher than those for secured loans.</p>



<h2 class="wp-block-heading">2) Borrowing Money Through Online Loans with No Documentation Required</h2>



<p>For individuals with unstable income or self-employed status, applying for a private loan can be difficult due to the inability to provide income documentation. In such cases, &#8220;no documentation loans&#8221; provided by banks and financial institutions can be viable.&nbsp;</p>



<p>These loans enable borrowers to skip certain specified documents, with the most common exemption being income proof, which typically includes pay slips and tax returns. All that is required is a valid ID and proof of address to apply for a private loan, and in some cases, even the latter can be waived.&nbsp;</p>



<p>The application process is streamlined, and many lenders offer online submission of required documents, with approval times as fast as 30 minutes, catering to the needs of those requiring immediate cash flow.</p>



<p>However, as the name implies, no documentation loans come with a catch. The loan amount approved for such loans is usually lower due to the lack of documentation, and because lenders have less stringent requirements for proof of income and address, there is a higher risk of default. As a result, interest rates for these loans tend to be higher than those for regular private loans. Exercising prudence and weighing the risks before borrowing under such circumstances is essential.</p>



<h2 class="wp-block-heading">3) Borrowing Money from Relatives and friends&nbsp;</h2>



<p>When faced with unexpected financial difficulties, seeking help from trusted family and friends is often the quickest solution. Borrowing money from them is the easiest method, as it doesn&#8217;t require income verification, interest payments, or even a repayment deadline.&nbsp;</p>



<p>However, the amount that can be borrowed depends on the relationship between the borrower and the lender and the lender&#8217;s financial situation. It may only sometimes be enough to solve the borrower&#8217;s financial problems. Although borrowing money from family and friends doesn&#8217;t require a formal repayment deadline, the proverbial saying &#8220;money talks, but it also ruins relationships&#8221; applies. Repaying the loan on time can maintain the relationship, so it&#8217;s best to establish a repayment plan and gradually pay off the debt to avoid awkwardness when meeting with the lender.</p>



<p>When borrowing money from family and friends, the borrower will inevitably be asked about the reason for the loan. Additionally, without a confidentiality agreement, the news of the loan could spread among other family and friends. Therefore, it&#8217;s essential to consider the impact on your relationship before asking for a loan from friends and family.</p>



<h2 class="wp-block-heading">4) Cashing Out Money Through Credit Cards&nbsp;</h2>



<p>Another method of borrowing money is to use credit cards to withdraw cash. Many Hong Kong residents have several credit cards, and when needing immediate cash, they may use their credit card limit to withdraw extra money.&nbsp;</p>



<p>The credit card limit can be used for cash overdrafts, meaning that cash can be withdrawn directly from ATMs, depending on the credit limit. However, the annual interest rate on credit cards can be as high as 40%, and interest is calculated daily. If the borrower doesn&#8217;t repay the amount in full on time, they may incur monthly processing fees.</p>



<p>Another way to obtain money from a credit card is through a cash advance, which requires the borrower to apply to the bank. No income proof is needed, and the loan can be approved within one to two working days. The loan amount depends on the credit limit of the credit card and the borrower&#8217;s credit status, and the annual interest rate can be as low as 3%.</p>



<h2 class="wp-block-heading">Never Attempt to Borrow from Loan Sharks</h2>



<p>When in urgent need of money, it is easy to resort to desperate measures. Every day we may receive multiple loan offers from anonymous calls, claiming that no proof of income or identification is necessary and that we simply need to complete a few simple procedures to borrow the money we need.&nbsp;</p>



<p>However, being wary of these unknown lenders is important, as they may be loan sharks (大耳窿). These easy-to-obtain loans may come with exorbitant interest rates and handling fees.</p>



<p>There was once a case in Hong Kong where a borrower borrowed HK$2,000 from a loan shark, but after deducting the relevant fees, the borrower only received HK$1,400. The borrower had to pay HK$200 per week in interest and was asked to pay an additional HK$5,000 in extra interest due to late repayment. In the end, the borrower paid back HK$20,200 within 7 days, but the loan shark continued to demand repayment for different reasons.</p>



<p>After borrowing from a loan shark, the debt can quickly spiral out of control. Even more frightening is that loan sharks may use different methods to intimidate borrowers into repayment, such as harassing their family and neighbors, pouring red paint, or even threatening the borrowers to take nude photos. Therefore, it is crucial to avoid loan sharks, as it could lead to even more severe consequences.</p>



<h3 class="wp-block-heading">Recommended Readings</h3>



<ul>
<li><a href="https://www.planto.hk/en/blog/personal-loan-APR-comparison/">Personal Loan Hong Kong: Borrow with the Best Interest Rate</a></li>



<li><a href="https://www.planto.hk/en/blog/tu-credit-report-explained/">TransUnion Credit Score: How to Improve + Everything Hong Kongers Should Know</a></li>
</ul>


Banks or financial companies provide online instant loans if you urgently need funds. Borrowers can receive preliminary approval within minutes and withdraw the loan within an hour. 

How to Instantly Borrow Money Online in Hong Kong: Your Guide to Quick and Easy Funding


<p>Bitcoin had a strong performance in 2021, with its price reaching almost US$70,000 at one point. However, it dropped below US$50,000 in December and weakened further in 2022. As of March 2023, its price still lingers around US$20,000.</p>



<p>Despite the high volatility of cryptocurrency prices, which poses significant risks, many retail investors are still drawn to them. The rise of NFTs and the metaverse has made the cryptocurrency market even more lively. Many hope to make a fortune by investing in cryptocurrencies such as Bitcoin, Ethereum, and Dogecoin.</p>



<p>For novices investing in the cryptocurrency market for the first time, they may be frightened by unfamiliar jargon and trading procedures. In recent years, many online platforms have greatly simplified cryptocurrency trading modes. By comparing the fees charged by different cryptocurrency platforms, beginners can learn how to invest in Bitcoin, Ethereum, and other cryptocurrencies or virtual currencies.</p>



<h2 class="wp-block-heading">Comparison of Online/Offline Trading Modes for Cryptocurrencies</h2>



<p>There are numerous ways to trade Bitcoin online—investors can easily conduct transactions through the platform&#8217;s website or mobile app. Investors may also transfer cryptocurrencies through offline channels. When selecting a trading mode, various factors such as convenience, transaction security, transaction costs, and storage methods should be considered. The following are some commonly used trading methods in Hong Kong:</p>



<h2 class="wp-block-heading">Buying Bitcoins through Spot Trading on Online Exchanges</h2>



<p>The easiest way to purchase cryptocurrencies is through spot trading on platforms. These platforms, which declared themselves as &#8220;exchanges,&#8221; &#8220;currency exchange shops,&#8221; or &#8220;trading platforms,&#8221; are straightforward to use. Standard payment methods include Mastercard, Visa cards, and bank transfers, which may vary depending on the platform.</p>



<p>Crypto exchanges such as Binance support purchasing cryptocurrencies using credit or debit cards. The process for different platforms is relatively similar. After entering the Hong Kong or US dollar amount on the purchase section of the platform, the user will then see the amount of cryptocurrency they can purchase. After entering and confirming credit card information and transaction details, the user can complete the transaction, and the purchased cryptocurrencies generally appear in the account within minutes.</p>



<p>Using credit or debit cards to purchase Bitcoin is advantageous because it is convenient, fast, and secure.<strong> However, the transaction fee can be as high as 5%,</strong> and most credit cards do not offer cashback for buying cryptocurriencies.</p>



<h2 class="wp-block-heading">Over-the-Counter (OTC) Trading through Online Crypto Exchanges&nbsp;</h2>



<p>In addition to buying Bitcoin directly from trading platforms, many cryptocurrency exchanges provide users with OTC trading services, also known as &#8220;off-exchange trading,&#8221; &#8220;C2C,&#8221; or &#8220;peer-to-peer.&#8221; Binance is a popular platform offering this type of trading.</p>



<p>During an OTC trade, the trading platform acts as an intermediary, matching buyers and sellers. The process is similar to that of an online marketplace:</p>



<ul>
<li>Sellers list their cryptocurrencies for sale on the platform.</li>



<li>Buyers contact sellers through the platform to purchase cryptocurrencies.</li>



<li>Both parties agree on the trade volume, settlement currency, and transfer method.</li>



<li>Before the buyer makes a payment, the platform freezes the seller&#8217;s cryptocurrencies on the exchanges.</li>



<li>After the buyer completes payment, the seller confirms the trade with the platform, transferring the cryptocurrencies to the buyer&#8217;s account.</li>
</ul>



<p>Since trading platforms conduct KYC on their customers and regulate their transactions, OTC trading can help reduce the risk of fraud. If disputes arise, the platform can assist with dispute resolution, although it cannot completely eliminate risks. OTC trading also incurs lower transaction costs than buying Bitcoins with a credit card.</p>



<p>When purchasing Bitcoins through P2P trading, the price is subject to negotiation between the two parties, and there may be a significant price differential. Many investors buy stablecoins like USDT through OTC trading due to their stable prices. Then, they can use USDT to trade other cryptocurrencies on the exchanges.</p>



<h2 class="wp-block-heading">P2P Offline Trading of Cryptocurrencies</h2>



<p>P2P offline trading is the most primitive way of buying and selling cryptocurrencies. It operates in the same way as trading any second-hand physical products. After the buyer and seller obtain contact information through online platforms, they directly meet and settle the transaction process through mutual agreement. For example, they can exchange a hard drive containing Bitcoin for cash face-to-face. This transaction method was once popular when online Bitcoin exchanges were not yet prevalent.</p>



<p>The advantage of buying cryptocurrencies through the P2P offline model is that it eliminates the need for intermediary platforms. However, the trading risk is higher as the buyer and seller do not know each other&#8217;s backgrounds. In Hong Kong, for example, there have been cases where people were robbed while conducting face-to-face Bitcoin transactions. When conducting P2P transactions, buyers and sellers must be careful and vigilant to prevent similar robbery or fraud cases from happening.</p>



<h2 class="wp-block-heading">Buying Bitcoins with Cash Through a Bitcoin ATM</h2>



<p>A Bitcoin ATM is not a traditional automated teller machine offered by banks. It is a self-service machine used to buy and sell popular cryptocurrencies such as Bitcoin, Ethereum, and Bitcoin Cash.</p>



<p>Buying Bitcoins through a Bitcoin ATM is simple and fast. Generally, all that is needed is to set up an account, deposit funds, and scan a QR code from a cryptocurrency wallet to complete the transaction within minutes. However, transaction fees are generally higher, and a price differential may exist.</p>



<h2 class="wp-block-heading">Cryptocurrency Storage Methods: Cold Wallet vs Hot Wallet</h2>



<p>Cryptocurrencies like Bitcoin are virtual assets that do not exist physically, and all Bitcoin transaction records are stored publicly and anonymously on the blockchain. Investors must possess their private keys to prove that they own the corresponding cryptocurrency on the blockchain and therefore control their assets.</p>



<p>Cryptocurrency wallets are mediums for storing private keys and are divided into &#8220;cold wallets&#8221; and &#8220;hot wallets.&#8221;</p>



<h3 class="wp-block-heading">Cold Wallet: Offline Storage of Private Keys</h3>



<p>A cold wallet is an offline wallet not connected to the internet. The most primitive method is to manually copy the private key onto paper, which is prone to errors or loss. Therefore, most cold wallets come in hard drives or USB thumb drives.</p>



<p>Popular cold wallet hardware suppliers include Trezor, Ledger, and KeepKey, with prices starting from several hundred dollars. These cold wallets are equipped with encryption functions, providing greater asset security.</p>



<p>Since cold wallets store private keys offline, the risk of hackers stealing private keys is significantly reduced. However, since cryptocurrency transactions are often conducted online, trading with cold wallets is relatively inconvenient.</p>



<h3 class="wp-block-heading">Hot Wallet: Online Storage of Private Keys</h3>



<p>A hot wallet, also known as an online wallet, is the opposite of a cold one. It is a cryptocurrency wallet stored online, accessible via mobile apps or websites, and allows investors to trade cryptocurrencies quickly.</p>



<p>While hot wallets are easy and convenient, they are also vulnerable to successful hacker attacks. Therefore, investors should avoid storing large amounts of cryptocurrency in a single hot wallet.</p>



<h3 class="wp-block-heading">Storing Assets on an Exchange</h3>



<p>Cryptocurrency exchanges generally provide asset custody services to users, a type of hot wallet. After users buy cryptocurrency through the platform, they do not possess the private key. However, the advantage is that it is incredibly convenient. Users do not need to manage their wallets and can log in to the platform to operate cryptocurrencies at any time, just like trading in a stock account.</p>



<p>Exchanges store customer assets using both cold and hot wallets. While exchanges take network security measures, it does not mean that there is no security risk, as everyone knows that exchanges hold large amounts of cryptocurrency and are easy targets for hackers. In addition, during significant market fluctuations, exchanges have temporarily suspended fund withdrawal services. Therefore, long-term investors should not store large cryptocurrency assets on exchanges.</p>



<h2 class="wp-block-heading">Earning Saving Interest from Stablecoins</h2>



<p>Earning interest on stablecoins is a stable investment strategy that does not require frequent trading and can provide up to 10% APY returns. Some cryptocurrency platforms support earning interest on stablecoins, with various options for payout frequency, such as monthly, weekly, daily, or even hourly. By utilizing stablecoin savings plans, investors can earn returns on idle funds before investing in other cryptocurrencies.</p>



<p>Some platforms support earning interest on cryptocurrencies like Bitcoin and Ethereum, but investors should be aware that the values of these cryptocurrencies are less stable than stablecoins pegged to the US dollar, which can result in the risk of earning interest but losing on the cryptocurrency&#8217;s value.</p>



<p>Another investment strategy for those who believe in the potential of Bitcoin or other cryptocurrencies is to invest in cryptocurrency-related stocks or ETFs on the US or Hong Kong stock market. This strategy offers the advantage of avoiding the risk of losing private keys and having a diversified portfolio to mitigate volatility in the cryptocurrency market.&nbsp;</p>



<p>However,<strong> investing in concept stocks or ETFs can result in tracking errors or premiums compared to direct investment in cryptocurrency. </strong>Also, stock markets have limited trading hours, unlike the 24/7 trading of cryptocurrencies, which can cause missed opportunities to buy or sell assets.</p>



<p>In October 2021, the first Bitcoin futures ETF, ProShares Bitcoin ETF (BITO), was listed on the US stock market with an expense ratio of 0.95%, providing investors with a simple way to invest in Bitcoin. There are also three virtual asset futures ETFs listed on the Hong Kong stock market, but they do not directly hold Bitcoin and instead invest in related futures contracts.</p>



<h2 class="wp-block-heading">Compare Investment Account and Enjoy New Customer Promotions Today</h2>



<p><broker-comparison-page articlename="HK Stock Investing Article" country="US" language="en"></broker-comparison-page></p>



<h2 class="wp-block-heading">FAQs About Investing in Bitcoin/Crypto</h2>



<div class="schema-faq wp-block-yoast-faq-block"><div class="schema-faq-section" id="faq-question-1678341338388"><strong class="schema-faq-question">What is Bitcoin?</strong> <p class="schema-faq-answer">Bitcoin was first proposed by the pseudonymous figure &#8220;Satoshi Nakamoto&#8221; in 2008 in a whitepaper titled &#8220;Bitcoin: A Peer-to-Peer Electronic Cash System.&#8221; It utilizes decentralized and cryptographic technology to facilitate secure, transparent, anonymous, and tamper-proof transactions. Bitcoin was the first widely-known cryptocurrency, and since then, various other cryptocurrencies have emerged, including Ethereum, Dogecoin, Ripple, Litecoin, Tether, and Bitcoin Cash.</p> </div> <div class="schema-faq-section" id="faq-question-1678341179238"><strong class="schema-faq-question">What is Bitcoin/crypto, and how does it work? </strong> <p class="schema-faq-answer">Bitcoin/crypto is a decentralized digital currency that operates on a peer-to-peer network, which means any central authority or government does not control it. Transactions are recorded on a public ledger called the blockchain, which allows for secure and transparent transactions.</p> </div> <div class="schema-faq-section" id="faq-question-1678341201550"><strong class="schema-faq-question">What are the risks of investing in Bitcoin/Crypto?</strong> <p class="schema-faq-answer">Investing in Bitcoin/crypto can be risky due to its high volatility and lack of regulation. The value of Bitcoin/crypto can fluctuate rapidly and dramatically, resulting in significant gains or losses. Additionally, crypto exchanges and wallets can be vulnerable to hacks and other security breaches.</p> </div> <div class="schema-faq-section" id="faq-question-1678341224781"><strong class="schema-faq-question">How do I store my Bitcoin/Cryptocurrencies? </strong> <p class="schema-faq-answer">You can store your Bitcoin/crypto in a digital wallet on your computer or a hardware device such as a Ledger or Trezor. It is important to keep your wallet and private keys secure to prevent unauthorized access.</p> </div> <div class="schema-faq-section" id="faq-question-1678341273715"><strong class="schema-faq-question">What are some strategies for investing in Bitcoin/crypto? </strong> <p class="schema-faq-answer">ome strategies for investing in Bitcoin/crypto include long-term holding, dollar-cost averaging, and active trading. It is important to do your own research and understand each strategy&#8217;s risks and potential rewards.</p> </div> </div>


Bitcoin was first proposed by the pseudonymous figure "Satoshi Nakamoto" in 2008 in a whitepaper titled "Bitcoin: A Peer-to-Peer Electronic Cash System." It utilizes decentralized and cryptographic technology to facilitate secure, transparent, anonymous, and tamper-proof transactions. Bitcoin was the first widely-known cryptocurrency, and since then, various other cryptocurrencies have emerged, including Ethereum, Dogecoin, Ripple, Litecoin, Tether, and Bitcoin Cash.

What is Bitcoin?

Bitcoin/crypto is a decentralized digital currency that operates on a peer-to-peer network, which means any central authority or government does not control it. Transactions are recorded on a public ledger called the blockchain, which allows for secure and transparent transactions.

What is Bitcoin/crypto, and how does it work? 

Investing in Bitcoin/crypto can be risky due to its high volatility and lack of regulation. The value of Bitcoin/crypto can fluctuate rapidly and dramatically, resulting in significant gains or losses. Additionally, crypto exchanges and wallets can be vulnerable to hacks and other security breaches.

What are the risks of investing in Bitcoin/Crypto?

You can store your Bitcoin/crypto in a digital wallet on your computer or a hardware device such as a Ledger or Trezor. It is important to keep your wallet and private keys secure to prevent unauthorized access.

How do I store my Bitcoin/Cryptocurrencies? 

ome strategies for investing in Bitcoin/crypto include long-term holding, dollar-cost averaging, and active trading. It is important to do your own research and understand each strategy's risks and potential rewards.

What are some strategies for investing in Bitcoin/crypto? 

Looking to buy Bitcoin in Hong Kong? Our comprehensive guide covers the best ways to buy, store and trade Bitcoin safely and securely in Hong Kong.






About Us

Blog

Other sites

Planto Blog