Financing Arrangements
| Marginable Securities | Designated securities listed in HKEX. For details, please check the Stock Margin List or click the following link: Stock Margin List |
|---|---|
| Margin Ratio | 10% - 70% of the market value of designated securities * |
| Marginable Value | Marginable Value ＝ Market Value of stock holding ｘ Margin Ratio |
| Margin Limit | Margin Limit is the maximum limit that clients can borrow for margin trading. Upon clients’ request, we will reassess their margin limit based on the following criteria: trading volume, types of collaterals and settlement records |
| Lending Rates | Overdue amount within the marginable value (Chong Hing Bank Prime Rate + 4%) Overdue amount beyond the marginable value (Chong Hing Bank Prime Rate + 7%) |
* Stock margin list is subjected to change from time to time without prior notice
Margin Call and Margin Top Up
| Margin Call | When clients accounts’ debt balance exceed their marginable value or margin limit**, margin call will be issued |
|---|---|
| Forms of Notification | Margin call will be issued by our company via phone or email |
| Margin Call Amount | Margin Loan minus (Marginable Value or Margin Limit) ** |
| Margin Top Up | Once a margin call is received, clients should either: 1. deposit additional cash equivalent to margin call amount; or 2. sell securities; or 3. deposit additional marginable securities as listed in Stock Margin List |
| Deadline for margin top up | Within one business day after margin call is received |
| Forced Liquidation | If clients fail to meet margin call within prescribed deadline, their account may be liquidated without your consent |
** Whichever is lower
Other terms and conditions:
- New margin account clients are required to make initial margin deposit before they commence securities trading.
- Clients can only withdraw their fund provided that their accounts have credit balance. Thus, clients are not allowed to withdraw any fund or securities even they have excess margin limit.
- Once clients have already received margin call, they not allowed to further purchase any securities in the same trade day until they make payment for margin top up.
- Our company will not accept any suspended securities, GEM securities, derivative warrants or CBBCs as collaterals.
Risk Disclosure:
Margin trading in securities involves significant risk and losses may exceed the value of your collateral. Regarding to the credit facilities provided by our company for margin account clients, we may repledge margin clients’ securities collateral to authorized financial institutions for financial accommodation / margin financing