Securities Margin Trading

The immediate financial flexibility to seize investment opportunities

Make use of additional investment capital, provided by our Securities Margin Trading Service, to generate greater potential returns.

Get additional funds of up to 60% of the total value of the stocks for purchase
Choose from a range of eligible securities (PDF) with variable margin ratios
Trade securities and get real-time market information via multiple channels

Our Securities Margin Trading service is available to HSBC Premier, HSBC One and Personal Integrated Account customers.

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Key benefits

Enhance your buying power

Get additional funds of up to 60% of the total value of the stocks for purchase—so you won't have to pass up investment opportunities just because you have cash tied up elsewhere

Multi-channels for convenient trading

Trade securities or get real-time stock price and market information via HSBC Online Banking, automated or manned^# Phone Banking services, at designated HSBC branches^# or HSBC Premier Centres^#

^#Exclusive to HSBC Premier customers

A broad range of choices

Pick from a variety of eligible securities (PDF) with variable margin ratios

Now with a lower interest rate

The securities margin financing interest rate is now at P minus 2.5% per annum

How much does it cost[@securitiesmarginothercharges]

Interest Rate

P minus 1.75% per annum[@securitiesmargininterest] for HSBC Jade, HSBC Premier, HSBC One and other Personal Integrated Account customers

Safe custody fee

HKD25 monthly[@securitiesmargincustodyfee]

How HSBC Securities Margin Trading Service works

Eligibility

Securities Margin Trading service is available to HSBC Premier, HSBC One and HSBC Personal Integrated Account customers with Hong Kong residential address and aged 18 or above.
Eligible stocks[@securitiesmargineligiblelistandratio]

Selected Hong Kong listed stocks and ETFs
Stock margin ratio[@securitiesmargineligiblelistandratio]

30-60% of the eligible stock value

Portfolio margin ratio

Total loan amount / Total eligible stock lending value* (You can borrow up to a Portfolio Margin Ratio of 100%)
Maintenance buffer

Portfolio margin ratio of 100% to less than 120%

*Eligible stock lending limit = eligible stock value multiplied by stock margin ratio.

Margin call/Force-sale:
Portfolio margin ratio	Action
105%-less than 120%	Margin call alert through SMS to remind you to cover the excess If your portfolio margin ratio has maintained between the range of 105% to less than 120% for over 90 calendar days, your stock holdings will be force-sold without prior notice
120% or above	Stocks will be force-sold when portfolio margin ratio reaches 120% or above. Force-sale alert through SMS to inform you about the force-sale status of the stock

Margin call/Force-sale:
Portfolio margin ratio	105%-less than 120%
Action	Margin call alert through SMS to remind you to cover the excess If your portfolio margin ratio has maintained between the range of 105% to less than 120% for over 90 calendar days, your stock holdings will be force-sold without prior notice

Portfolio margin ratio	120% or above
Action	Stocks will be force-sold when portfolio margin ratio reaches 120% or above. Force-sale alert through SMS to inform you about the force-sale status of the stock

Example (for illustration only)

Assume stock margin ratio at 60%
	HSBC's Securities Margin Trading Service	Invest with cash
Your available capital	HKD10,000	HKD10,000
Total value of eligible stock you can purchase	HKD25,000 [HKD10,000 ÷ (100% - stock margin ratio)]	HKD10,000
Portfolio margin ratio (total loan amount ÷ total eligible stock lending limit)	100% (HK$15,000 ÷ (HK$25,000 x 60%))	-

Assume stock margin ratio at 60%
	Your available capital
HSBC's Securities Margin Trading Service	HKD10,000
Invest with cash	HKD10,000

	Total value of eligible stock you can purchase
HSBC's Securities Margin Trading Service	HKD25,000 [HKD10,000 ÷ (100% - stock margin ratio)]
Invest with cash	HKD10,000

	Portfolio margin ratio (total loan amount ÷ total eligible stock lending limit)
HSBC's Securities Margin Trading Service	100% (HK$15,000 ÷ (HK$25,000 x 60%))
Invest with cash	-

Assuming that the value of stock increased by 20% after one month
Total value of your eligible stock portfolio	HKD30,000 (HKD25,000 x 120%)	HKD12,000 (HKD10,000 x 120%)
Profit after stock sold	HKD5,000 (Excluding stock dividends earnings and cost of borrowing)	HKD2,000 (Excluding stock dividends earnings)
Return on investment	50% (HKD5,000 ÷ HKD10,000)	20% (HKD2,000 ÷ HKD10,000)

Assuming that the value of stock increased by 20% after one month
Total value of your eligible stock portfolio	Profit after stock sold
HKD30,000 (HKD25,000 x 120%)	HKD5,000 (Excluding stock dividends earnings and cost of borrowing)
HKD12,000 (HKD10,000 x 120%)	HKD2,000 (Excluding stock dividends earnings)

Total value of your eligible stock portfolio	Return on investment
HKD30,000 (HKD25,000 x 120%)	50% (HKD5,000 ÷ HKD10,000)
HKD12,000 (HKD10,000 x 120%)	20% (HKD2,000 ÷ HKD10,000)

Based on the above illustration, your return on investment can potentially be more than doubled with HSBC Securities Margin Trading Service.

Please note:

The information in this document does not constitute a solicitation for the purchase or sale of any security or investment.

The Bank does not provide investment advice. The purchases and sales of securities involve an element of risk. Prices of securities are subject to downward and upward adjustments, and may become valueless. It is likely that losses will be incurred rather than profit made as a result of buying and selling securities.

Securities Margin Trading Service is not available to US and Canadian residents.

To borrow or not to borrow? Borrow only if you can repay!

Need help?

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Find your nearest branch or call us on (852) 2233 3733.

Lines are open 9:00am to 6:00pm, Mondays to Fridays, and 9:00am to 1:00pm on Saturdays, except public holidays.

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We will force sell your securities without prior notice if (i) your portfolio margin ratio remains at or above 105% to less than 120% for consecutive 3 months or (ii) once it reaches 120% or above at any given time or (iii) at any time as determined by us from time to time.

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Notes

The Bank does not provide investment advice. Investment involves risk. The price of stocks may move up or down.

Losses may be incurred as well as profit made as a result of buying and selling stocks. Full details of the terms and conditions of the above services are available on request.

The information shown is based on data obtained from sources believed to be reliable but the Bank and the concerned Information Provider(s) make no representation and accept no responsibility as to its accuracy or completeness and shall not be held liable for damages arising out of any person's reliance upon this information. This information is neither a recommendation, an offer to sell, nor solicitation of an offer to purchase any investment. The prices quoted and the other information shown are for reference only and are subject to change without notice.