Securities Margin Trading Services - Product Features
Offers you additional funds for investment in designated stocks*, helping you to grasp every opportunity in the ever-changing stock market to generate higher potential returns.
* You may click here or login Internet Banking or Mobile Banking or contact staff of Bank of China Hong Kong Limited (“BOCHK”) 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 BOCHK 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 Securities Margin Account (regardless of whether they have any loanable percentage) are being charged to us.
High Stock Loanable Percentage
We provide you extra investment capital of up to 70% of the prevailing market value of stocks, help you to strive for 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 BOCHK from time to time.
Additional interest income
Cash balance in your securities margin trading account may generate interest# income and help you to further increase your investment return.
#Subject to the Hong Kong Dollar / RMB savings deposit rates quoted by BOCHK from time to time.
Flexible and convenient services
You can visit any of BOCHK branches or Internet Banking to open securities margin account. For your greater convenience, you can trade or make margin transfer via Internet Banking, Mobile Banking or Investment Service Hotline. In addition, you can deposit margin via branches.
Account Operation & Requirement
Securities Margin Account supports Hong Kong & A shares trading. You must deposit certain level of cash margin to your securities margin account in order to conduct securities transaction or fulfill the additional margin requirement.
You may deposit cash margin in Hong Kong Dollar or RMB, the loan interest/savings interest income will be calculated respectively according to the cash balance of different currencies.
The margin ratio of Securities Margin Account is calculated in following way:
| Total Effective Loanable Value | The lower of:
|
|---|---|
| Loanable Value | The lower of:
|
| Margin Ratio | Total Loan / Total Effective Loanable Value |
Remark: Starting from 17th Nov 2024, the following upper limits of loanable value for particular security is set, including：
- The quantity of a particular security held by a customer cannot exceed 5% of its total issued quantity.
- When the total loan is above HK$30,000,000 or equivalent, the loanable value of a particular security cannot occupy more than 40% of the total loanable value of the securities margin account.
You should always monitor the position of your securities margin account to maintain a margin ratio of 100% or below. When there is a margin call, customers have the responsibility to pay the amount of the margin call promptly. When the margin ratio reaches the following designated level or Event of Default occurs, BOCHK may force sell the securities according to the relevant terms and conditions without prior notice to customers：
| Designated Level | Margin Ratio | Actions |
|---|---|---|
| Top Up Level | Above 100% | Customer must deposit additional margin immediatelyRemark to restore the margin ratio to 100% or below. |
| Stop Loss Level | 120% or above | BOCHK may force sell the securities to restore the margin ratio to 100% or below without prior notice to customers. |
Remark: If a customer fails to deposit additional margin in a timely manner as required by BOCHK, BOCHK may force sell the securities according to the relevant terms and conditions without prior notice to the customer. If the margin ratio remains above 100% for 6 consecutive calendar days (count as at Hong Kong time 5:00 p.m.), BOCHK may force sell the securities without prior notice to customers.
Illustration (for reference only)
Assume the stock loanable percentage is 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 70%)] |
| If the customer buys the stock, the securities margin account portfolio will be as follows: | |
| Total Loan | $70,000 |
| Total effective loanable value | $70,000 (Market value of the stock × stock loanable percentage) |
| Margin ratio( = Total loan / Total 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 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 their margin accounts. If there is a margin call, customers have the responsibility to pay the amount of the margin call promptly.
- If the margin ratio is higher than the top up level (above 100%), customers are required to deposit additional margin to restore the required margin ratio to 100% or below. If the margin ratio reaches the stop loss level (120% or above), the Bank will force sell securities of the securities margin account to restore the margin ratio to 100% or below without prior notice to customers.
- The required margin ratio is subject to change at the discretion of BOCHK from time to time.
- Stock loanable percentage may vary from 10% to 70% among stocks. For details, please contact our branch staff.
- The above products and services are subject to relevant terms and conditions. For details, please contact the branch staff.
- BOCHK reserves the right to amend, suspend and terminate the above products and services, and to amend the relevant terms and conditions at any time at its sole discretion without prior notice.
- 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.
This promotion material does not constitute any offer, solicitation, recommendation, comment or guarantee to the purchase, subscription or sale of any investment product or service and it should not be considered as investment advice.
This promotion material is issued by BOCHK and the contents have not been reviewed by the Securities and Futures Commission of Hong Kong.
