The prices of securities fluctuate, sometimes dramatically. Margin trading in securities involves significant risk and losses may exceed the value of your collateral. Contingent orders may not necessarily limit losses as market conditions may make it impossible to execute contingent orders. Additional margin deposits may be required at short notice. Your collateral may be liquidated without your consent and you will remain liable for any resulting deficit in your account. You should therefore carefully consider whether margin trading in securities is suitable for you in light of your own financial position and investment objectives. It is as likely that losses will be incurred rather than profit made as a result of dealing in securities.
Hang Seng Share Margin Services provide you extra funds and help you capture potential investment opportunities.
Preferential Interest Rate1
Preferential interest rate is offered and interest will only be charged on the daily outstanding debit balance in the Share Margin Settlement Account, the interest rate per annum can be as low as Prime Rate – 1%.
Enhance Buying Power
The margin ratio is 40% - 60% of marginable stocks2 which provides you up to 60% extra funds to buy marginable stocks. No minimum monthly repayment amount is required.
Instant Order Confirmation Service3
Latest order execution results will be sent to you via text messages to your mobile phone
Margin Call / Force-sale4
If the price of your marginable stock falls and the Margin Loan-to-Value Ratio reaches:
62% or above, a text message will be automatically sent to your mobile phone keep you informed of your margin position;
70% or above, the Bank will force sell customer’s stock without prior notice and a text message will be sent to your mobile phone to inform you about the force-sale status of the stock.
Wide Choice of Trading Channels
Automated Securities Trading Hotline
Manned Securities Trading Hotline
As our Integrated Account customers, you can set up a Hang Seng Share Margin Account5
at our branches
For more information, please call 2998 9898 during office hours or visit our branches
Prime Rate refers to the Hong Kong Dollar Prime Lending Rate as quoted by Hang Seng Bank Limited (“the Bank”) from time to time. The Bank reserves the right to revise margin loan interest rates from time to time.
The Bank reserves the right to revise the list of marginable stocks and the margin ratios.
Instant Order Confirmation Service is only available to local mobile phone numbers issued by telecom companies in Hong Kong which start with specified digits. Once the Instant Order Confirmation Service is applied and taken effect, you will be notified through this service of the execution results of your purchase / sale orders for local securities and IPO subscription allotment result. Customers are responsible for any fees and charges which may be levied by the relevant telecom company from time to time.
The Bank will perform at least 4 real-time stocks revaluations every day to calculate the Margin Loan-to-Value Ratio to determine whether customers require to cover the excess.
Formula for calculation of Margin Loan-to-Value Ratio: Margin Loan ÷ Total Market Value of your Marginable Stocks
If Margin Loan-to-Value Ratio rises to 70% or above, the Bank reserves the right to sell customer's securities without prior notice in order to restore the original margin ratio.
The Bank will calculate the Margin Loan-to-Value Ratio based on customer's available balance. It is recommended that customers should deposit cash into their settlement accounts when a reminding margin call is received.
If your margin loan is HKD50,000 and the market value of your marginable stocks is HKD100,000, the Margin Loan-to-Value Ratio is 50,000 ÷ 100,000, i.e. 50%.
Suppose the market value of your marginable stocks falls to HKD70,000, your Margin Loan-to-Value Ratio increases to 71.4% and the Bank has the right to sell your securities in order to restore the original Margin Loan-to-Value Ratio
Hang Seng Share Margin Account is only available to Hong Kong Identity Card holders with Hong Kong correspondence addresses.