Mr. Wong holds a securities account at ABC Brokerage Firm. As at the default date, he holds securities traded on the Stock Exchange of Hong Kong worth HK$400,000. He also holds securities traded on the Shanghai Stock Exchange worth HK$300,000 and securities traded on the Shenzhen Stock Exchange worth HK$200,000, and in respect of which an order for sale or purchase is permitted to be routed through the northbound link of a Stock Connect arrangement. What is the maximum compensation amount for Mr. Wong if ABC Brokerage Firm defaulted?
The maximum compensation amount for Mr. Wong is HK$500,000 as the compensation limit is applied on a per-investor basis for securities account. When determining the compensation amount payable to Mr. Wong, all the securities in Mr. Wong's securities account will be taken into account when calculating his losses in relation to securities.