What is margin financing?

An investor who purchases securities may pay for the securities in full or may borrow part of the purchase cost from his brokerage. If the investor chooses to borrow money, he/she has to open a margin account. The portion of the purchase cost that the investor deposits is called "margin". The investor's credit facility is secured against the purchased securities or other securities held in his/her margin account as collateral. After selling the securities, the investor has to repay the borrowed money in accordance with the terms of the margin facility. The profit is the difference between the purchase cost and the sale proceeds, reduced by transaction costs and the interest charged on the margin loan.

Our Services

Sun Hung Kai Financial is one of the largest securities margin financing providers in Hong Kong and also one of the key players in Hong Kong for providing IPO financing.

We offer our customers margin financing at a competitive rate. You can now leverage your enhanced buying power to either increase or expand your investment portfolio by seizing timely investment opportunities.

Customers can open a margin securities trading account ("Margin account"), with Sun Hung Kai Investment Services Limited or with SHK Online (Securities) Limited. You can borrow funds to leverage your securities trading by utilizing your existing marginable securities acceptable to Sun Hung Kai Financial as "collateral". However, your securities in a margin account may be subject to re-pledging by Sun Hung Kai Financial in order to accommodate your financial requirements.

Products available for margin financing include:

• Stocks, mutual funds, and equity-linked instrument
• IPOs

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