Securities Margin Trading Services
Have you ever missed any investment opportunity in the stock market due to insufficient capital? BOCHK's Hong Kong and China Securities Margin Trading Service offers you additional funds for investment in designated stocks*, allowing you to grasp every opportunity in the ever-changing stock market to generate higher potential returns.
* You may login Internet Banking or Mobile Banking or contact our staff for enquiry about the list of designated securities. Please note that our regular review of the loanable securities list will be conducted and amended on the 20th day of each month (if it is not a trading day, it will be postponed to the next trading day) without prior notice. Please pay attention that our bank may amend the loanable securities list from time to time without prior notice and the change(s) of the loanable securities list may have impact on your securities margin account.
Note: Except BOC Hong Kong (Holdings) Ltd. (Stock Code: 2388 / 82388), all the securities in the Margin Account (regardless of whether they have any loanable percentage) are being charged to us.
High Stock Loanable Percentage
With extra investment capital of up to 70% of the prevailing market value of stocks, you will be able to yield higher potential returns.
Preferential margin loan interest rate
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.
Additional interest income
Cash balance in your securities margin trading account helps generate additional interest# income.
#Subject to the Hong Kong Dollar / RMB savings deposit rates quoted by Bank of China (Hong Kong) from time to time.
Flexible and convenient services
To enjoy this service, simply visit any of our branches or our Internet Banking to set up the securities margin account. For your greater convenience, you can trade or make margin transfer via our Internet Banking, Mobile Banking or manned trading hotlines^. In addition, you can make margin via our branches.
^ Internet Banking and Mobile Banking only offer Hong Kong stock margin trading and margin transfer services.
Illustration (for reference only)
Assume stock loanable percentage at 70%
| Customer's available capital | $30,000 |
| Maximum value of the designated stock that the customer can buy | $100,000 [$30,000/(100% - stock loanable percentage)] |
| If the customer buys the stock, the margin account portfolio will be as follows: | |
| Total Loan | $70,000 |
| Effective loanable value | $70,000 (Market value of the stock × stock loanable percentage) |
| Margin ratio( = Total loan / effective loanable value) | 100% (= $70,000 / $70,000) |
Scenario 1:
If the market value of that stock increases by 10% to $110,000
| Margin ratio | 90.91% (= $70,000 / $77,000) |
| Profit earned after the stock sold | $10,000 (excluding interest and transaction handling fees) |
| Rate of return | 33% (= $10,000 / $30,000) |
Scenario 2:
If the market value of that stock decreases by 17% to $83,000
| Margin ratio | 120.48% (= $70,000 / $58,100) |
| 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 | - 57% (= -$17,000 / $30,000) |
- Customers should always monitor the position of the margin accounts. If there is a margin call, customers have the responsibility to pay the amount of the margin call.
- If the margin ratio reaches the top up level (110%), customers are required to cover the excess so as to restore the required margin ratio to 100% or below. If the margin ratio reaches the stop loss level (120%), the Bank will begin to sell the relevant stocks to restore the required margin ratio without prior notice. Please note that the Bank may amend the aforesaid designated margin ratio from time to time.
- The required margin ratio is subject to change at the discretion of Bank of China (Hong Kong) from time to time.
- Stock loanable percentage may vary from 10% to 70% among stocks. For details, please contact our branch staff.
- 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 Customer Service Hotline at +852 3669 3668.
Reminder: To borrow or not to borrow? Borrow only if you can repay!
Risk Disclosure:
The following risk disclosure statements cannot disclose all the risks involved and does not take into account any personal circumstances unknown to BOCHK. You should undertake your own independent review and seek independent professional advice before you trade or invest especially if you are uncertain of or have not understood any aspect of the following risk disclosure statements or the nature and risks involved in trading or investment. You should carefully consider whether trading or investment is suitable in light of your own risk tolerance, financial situation, investment experience, investment objectives, investment horizon and investment knowledge.
Risk Disclosure of Securities Trading
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.
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 risk tolerance, financial situation, investment experience, investment objectives, investment horizon and investment knowledge.
You are reminded to understand the relevant details, charges and important notes before investing in Shanghai A shares or Shenzhen A shares. For details, please read the “Important Notice of Trading China A Shares and A Shares Margin Trading via Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect” in BOCHK’s website or the branch staff of BOCHK. Details
Conversion Limitation Risk of RMB (Only applicable to Individual Customers)
RMB investments are subject to exchange rate fluctuations which may provide both opportunities and risks. The fluctuation in the exchange rate of RMB may result in losses in the event that the customer converts RMB into HKD or other foreign currencies. RMB is currently not fully freely convertible. Individual customers can be offered CNH rate to conduct conversion of RMB through bank accounts and may occasionally not be able to do so fully or immediately, for which it is subject to the RMB position of the banks and their commercial decisions at that moment. Customers should consider and understand the possible impact on their liquidity of RMB funds in advance.
Conversion Limitation Risk of RMB (Only applicable to Corporate Customers)
RMB investments are subject to exchange rate fluctuations which may provide both opportunities and risks. The fluctuation in the exchange rate of RMB may result in losses in the event that the customer converts RMB into HKD or other foreign currencies. RMB is currently not fully freely convertible. Corporate customers that intend to conduct conversion of RMB through banks may occasionally not be able to do so fully or immediately, for which it is subject to the RMB position of the banks and their commercial decisions at that moment. Customers should consider and understand the possible impact on their liquidity of RMB funds in advance.
