|
Notice: We do not have any official authorized organization and organize any official WeChat group. If some fraudsters may pose themselves as employees of Solomon to engage in any investment activities, be vigilant to avoid being deceived.

More questions? Please click

American depositary receipt (ADR) escrow fees

 

1. Introduction to ADR

ADRs (American Depository Receipts) represent ownership of non-U.S. company shares which can be traded in U.S. markets. Most of Chinese companies traded on the U.S exchange are ADRs, for example BABA, PDD & NIO etc, these companies will incur regular ADR fees, commonly at $0.02-$0.05 per share every financial year.

List of Chinese ADRs can be referred at https://www.investing.com/equities/china-adrs

 

2. How the ADR Fees being charged

DTC(Depository Trust Company) has started charging ADR Fees from broker-dealers and clearing firms since 2008, which in turn pass the fee to the investors. As ADR Fees settlement will take some time, Solomon will freeze the corresponding amount on the record date and deduct on the bill date.

Generally speaking, ADR Fees charging process resembles dividend paying process. Announcement date, Record date and Bill date are three important dates, ADR custodian bank will update these dates regularly.

Announcement Date: Custodian bank announce incoming ADR Fees

Record Date: Customers with settled positions on this date will be charged for ADR Fees, even if they sold the positions thereafter.

Bill Date: The actual charge date, the date may slightly differ between custodian bank to broker and broker to client due to time need for settlement.

 

3. ADR Fees

ADR Fees range between 2 to 5 cents per share on average, different ADRs will have different fees and bill date, if corresponding stock issues dividend during the year, ADR Fees will be deducted from the dividend amount in the name of dividend fee, if corresponding stock issues no dividend, ADR Fees should be deducted separately.

ADR Fees are charged 1 to 4 times per year normally, the frequency might be higher under special circumstances. The charge amount will be split accordingly. For example, if annual ADR Fees is 2 cents and the charging frequency is 4 times a year, 0.5 cent will be charged each time.

 

4. Check ADR details

The majority of ADRs are under custodian of four major banks - BNY Mellon, Deutsche Bank, Citi Bank and J.P. Morgan. You may check ADR information through their official ADR sites.

Some ADRs are under custody of a single bank, if you cannot locate information at a certain bank, please try the other 3.

4.1 BNY Mellon

After landing at BNY Mellon ADR site, select ‘Symbol’, enter stock code, ADR details will be displayed at the pop-up window.

https://pubimg-10000538.cos.ap-shanghai.myqcloud.com/2021030102903739b00bdcf3029.png

Click 'Distribution/DSF' at ADR details page, then click ‘Depositary Service Fee’, you will be able to see ADR FEE details, you may also access bank announcement via the pdf icon on the page.

https://pubimg-10000538.cos.ap-shanghai.myqcloud.com/2021030102903740b8673480558.png

 

4.2 Deutsche Bank

Search stock code after landing at Deutsche Bank ADR site, ADR details will display after clicking 'Advanced search'.https://pubimg-10000538.cos.ap-shanghai.myqcloud.com/20210301029037415acea76af48.png

 

Click 'Corporate Actions' tab at the details page, ADR Fee will display after clicking 'Service Fee', you may also download the bank announcement from the 'Download Documentation' link as well.
https://pubimg-10000538.cos.ap-shanghai.myqcloud.com/20210301029037424a9718ce4e1.png

4.3 Citi Bank

Search stock symbo lafter landing at Citi Bank ADR site, ADR details will display after clicking on the stock code.

https://pubimg-10000538.cos.ap-shanghai.myqcloud.com/2021030102903744d6c56aa7ce9.png
You will see ADR Fee details after clicking 'Company DSF Notices' at the right-hand side navigation bar, you may also download the bank announcement by clicking on the PDF sign at the ADR details page.

https://pubimg-10000538.cos.ap-shanghai.myqcloud.com/2021030102903746e24d189e9b9.png
4.4 J.P.Morgan Bank

Search stock code at the search bar after landing at J.P.Morgan Bank ADR site, ADR details will display after clicking on the stock code.
https://pubimg-10000538.cos.ap-shanghai.myqcloud.com/2021030102903747b87e6d29e9a.pngClick 'Fees' tab at the 'PROGRAM ACTIVITY' to view ADR Fee details, you may also download the bank announcement by clicking on the PDF sign at the ADR details page.https://pubimg-10000538.cos.ap-shanghai.myqcloud.com/20210301029037485fa4915cd3a.png

 

协议及声明

American depositary receipt (ADR) escrow fees

 

Except for public holidays and the market closure due to bad weather, the Hong Kong stock market generally trades from Monday to Friday. The trading hours are as follows:
 

1. Pre-open Period

Time period

Trading Rules

Enter order 9:00-9:15

Submit, modify, and cancel auction market orders and auction limit orders

Non-cancellable 9:15-9:20

Only at-auction market orders and at-auction limit orders can be submitted, and orders cannot be withdrawn or modified

Random match period 9:20-9:22 (match will start randomly at 9:20-9:22 at the final reference equilibrium price)

Conduct matchmaking during auction period

Pause period, from random match period ends to 9:30

At-auction order: Incomplete order will be cancelled by the system; At-auction limit order: If the input price range of an incomplete order does not deviate from the nominal price by nine times or more, it will be converted to a limit order and automatically transferred to the continuous trading session

 

2. Continuous Trading Hours

Time period

Beijing Time

Morning market

9:30-12:00

Closed at noon

12:00-13:00

Afternoon market

13:00-16:00

Note: Order modification is not allowed during the closed at noon, and cancellation is allowed during 12:30 - 13:00.

 

3. Closing Auction Trading Session

Time period

Trading Rules

Closing auction period 16:00-16:01      

Calculate and publish reference price; orders cannot be submitted

Enter order 16:01-16:06

You can submit, modify, and cancel at-auction market orders and auction limit orders. The price limit of auction limit orders shall not exceed ±5% of the reference price

Non-cancellable 16:06-16:08

At-auction market orders and at-auction limit orders can be submitted, and cannot be cancelled or changed; the input price of at-auction limit orders must be between the lowest selling price and the highest bidding price

Random closing 16:08-16:10

At random closing time, at-auction market orders and at-auction limit orders can still be submitted, and cannot be cancelled or changed; the input price of auction limit orders must be between the lowest selling price and the highest bidding price