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Securities Margin Financing

Product

Securities Margin Financing

Description

Securities Margin Financing is a financing service that uses stocks as collateral to obtain loans. Investors is required to pay loan interest, obtain additional funding for target stocks. Appropriate use of Securities Margin Financing can help investors to capture opportunities for greater investment returns whilst risks will also amplify.

Features

1. Provide Hong Kong dollar and RMB denominated Securities Margin Financing, with shared financing amount. Financial leverage can be used to increase investment capital for purchase of Hong Kong dollar and RMB denominated stocks.

2. Loans are handled in the form of guaranteed overdrafts.

3. HKD loans are calculated in Hong Kong dollar interest rate, and RMB loans are calculated in the RMB interest rate.

4. Interest is calculated on a daily basis, and the interest is paid off once a month.

5. The financing period is generally one year.

6. More than 250 stocks can be pledged, and the Margin ratio of stocks pledged ranges from 20% to 60%.

7. Margin-call terms is set based on the actual Margin ratio of stocks. when the stock market value drops below such points, investor will need to make additional deposit of collateral.

8. This product is suitable for investors with high risk appetite, by taking risks and at reasonable costs, to capture opportunities for higher returns.

Charges

Free of loan handling charge with low loan interest rate

Securities Margin List

For more details, please refer to the Securities Margin List(Effective From 11th Jun 2021)

The Bank reserves the right to modify the Securities Margin List at any time without prior notice. For details, please contact our branch offices or customer service number 888 95566.

Eligible Customers

Customers with investment experience and a certain level of risk appetite

Application Method

To apply for Securities Margin Financing, please visit the branches of Bank of China Macau Branch in person.

Risk Disclosure

Securities Margin Financing is with leverage, investors may suffer higher loss while the return may be higher, compared to trading without leverage. When the prices fall, investors may suffer the loss more than their pledged deposit and other asset. The loss may be higher than the principal amount. Due to market conditions, losses may not be limited, you may be required to deposit additional funds or pay interest in a very short time. If you fail to pay the required amount of funds or interest within the timeframe, your collateral deposited in the bank may be liquidated without your consent. In addition, you are responsible for any debts in your account and the interest to be paid.

The above information is just a brief introduction of the product features, and it does not contain all the information concerning the product. Before making any investment decision, you should read all related sales documents first to gain a full understanding of the characteristics, structure, costs and risks of the product. You should carry out your own research, analysis and prudent consideration based on your own financial conditions and investment goals and make sure that you have fully understood the nature of and risks relating to the product. You are also recommended to consult your professional advisers to ascertain whether this product is suitable for you. Should you have any question on the above information, please seek professional advice from an independent third party before making any instruction.

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