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High stock loanable percentage |
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With extra investment capital of up to 60% of the prevailing market value of designated stocks, you will be able to yield higher potential returns. |
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Preferential margin loan interest rate |
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Attractive interest rate** is offered to your margin loan. As the interest will be calculated based on your daily outstanding amount and settled on a monthly basis, you can benefit from lower investment cost.
**Subject to the interest rates quoted by Bank of China (Hong Kong) from time to time.
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Bonus investment returns |
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Extra margin in your securities margin trading account will help you earn additional interest# income.
#Subject to the Hong Kong Dollar savings rates quoted by Bank of China (Hong Kong) from time to time.
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Simple and flexible transaction |
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To enjoy this service, simply visit any of our branches to set up the securities margin account. For your greater convenience, you can trade or make margin transfer via our Internet Banking or manned trading hotlines. In addition, you can make margin via our branches. |
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Free notification services |
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After successful registration, a free SMS## will be sent to your mobile phone for easy reference once your transaction is completed.
##Only applicable to the mobile phones served by GSM network.
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Illustration (for reference only) |
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Assume stock loanable percentage at 60%
| Customer's available capital |
$40,000 |
| Maximum value of the designated stock that you can buy |
$100,000
[$40,000/(100% - stock loanable percentage)] |
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If the customer buys the stock, the margin account portfolio will be as follows: |
| Total Loan |
$60,000 |
| Effective loanable value |
$60,000
(Market value of the stock ×
stock loanable percentage) |
| Margin ratio( = Total loan / effective loanable value) |
100%
(= $60,000 / $60,000) |
Scenario 1:
If the market value of that stock increases by 10% to $110,000
| Margin ratio |
90.91%
(= $60,000 / $66,000) |
| Profit earned after the stock sold |
$10,000
(excluding interest and transaction handling fees) |
| Rate of return |
25% (= $10,000 / $40,000) |
Scenario 2:
If the market value of that stock decreases by 17% to $83,000
| Margin ratio |
120.48%
(= $60,000 / $49,800) |
| The stock will be sold by the Bank once the margin ratio reaches the sell-out level. |
| The amount lost after the stock sold |
$17,000
(excluding interest and transaction handling fees) |
| Rate of return |
- 42.5% (= -$17,000 / $40,000) |
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If the margin ratio reaches 110%, customers are required to cover the excess so as to restore the required margin ratio to 100% or below. If margin ratio reaches 120%, the Bank will begin to sell your stocks to restore the required margin ratio without prior notice.
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The required margin ratio is subject to change at the discretion of Bank of China (Hong Kong) from time to time.
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Stock loanable percentage may vary from 10% to 60% among stocks. For details, please contact our branch staff.
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In case of any discrepancy between the Chinese and English versions, the English version shall prevail. For further information, please visit any of our branches or call our enquiry hotline at (852) 3669 3668.
Important Notice
Risk Disclosure of Securities Margin Trading
The risk of loss in financing a transaction by deposit of collateral is significant. You may sustain losses in excess of your cash and any other assets deposited as collateral with the licensed or registered person. Market conditions may make it impossible to execute contingent orders, such as "stop-loss" or "stop-limit" orders. You may be called upon at short notice to make additional margin or interest payments. If the required margin or interest payments are not made within the prescribed time, your collateral may be liquidated without your consent. Moreover, you will remain liable for any resulting deficit in your account and interest charged on your account. You should therefore carefully consider whether such a financing arrangement is suitable in light of your own financial position and investment objectives.
Risk of Securities Trading
The prices of securities fluctuate, sometimes dramatically. The price of a security may move up or down, and may become valueless. It is as likely that losses will be incurred rather than profit made as a result of buying and selling securities. |
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High stock loanable percentage 
