Invest

Securities Margin Trading

The Bank offers you with Securities Margin Trading Service, providing you additional funds through leverage, enhancing your purchasing power to invest in designated stocks* and seize market opportunities for higher potential returns.

Service Benefits

More than 300 shares in our list^* of recognised shares can be used as collateral
Stock margin ratio varies from 30% to 60% of the market value of the eligible shares
Preferential margin loan interest rate
Pre-approved limit of HKD500,000 upon successful account opening
Simple application via branches and online channels

^* The Bank will revise the list of eligible shares regularly.

Key Facts Statement

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Important Facts Statement

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Illustration (for reference only)

Assume customer has HKD 100,000 in cash and buys stock A at HKD50 (stock margin ratio for stock A is 60% of the stock value).

	Cash Securities Account (HKD)	Margin Securities Account (HKD)
Cash	100,000	100,000
Amount available for stock purchase	100,000	250,000 [100,000 ÷ (100% - 60%)]
Number of shares purchased	2,000 shares	5,000 shares
Assume stock price for stock A increases by 10% and the customer sells the stock at 55HKD
Profit	10,000 [2,000 shares X 55 - 100,000]	25,000 [5,000 shares X 55 - 250,000]
Return	10%	25%
Assume stock price for stock A decreases by 10% and the customer sells the stock at 45HKD
Loss	10,000 [2,000 shares X 45 - 100,000]	25,000 [5,000 shares X 45 - 250,000]
Return	-10%	-25%
Remarks: The above examples do not calculate stamp duty, trading commissions, various transaction fees and interest

Customers should regularly monitor the portfolio margin ratio of their accounts. If the portfolio margin ratio reaches 110% or higher, they are required to promptly settle the margin call by depositing additional funds or liquidating securities.
If the portfolio margin ratio reaches 120 % or remains at or above 110% for 2 business days, the Bank has the right to forcibly liquidate securities in the Securities Margin Trading Service Account at market price, without prior notice.

Call Margin Example:

Assume stock price for stock A decreases to 45HKD
Outstanding Loan	HKD 150,000 [250,000 - 100,000]
Portfolio Margin Ratio	111% [150,000 ÷ (5,000 shares X 45 X 60%)]

Forced Sale Example:

Assume stock price for stock A decreases to 41HKD
Outstanding Loan	HKD 150,000 [250,000 - 100,000]
Portfolio Margin Ratio	122% [150,000 ÷ (5,000 shares X 41 X 60%)]

Additional Information

Stock Margin Ratio and the interest rate are subject to change at the Bank discretion.
The Bank may amend the eligible securities list from time to time without prior notice and the change(s) of the eligible securities list may have impact on your securities margin trading service account.
The Bank's securities related system undergoes information update every trading day after the market closes. After that, the system recalculates the effective loanable value for securities margin account based on the next trading day's loanable securities list to prevent customer's order placed in the evening of trading day after the market closes from exceeding the actual available investment amount. Thus, if there is any amendment on the loanable securities list effective on the next trading day, your margin ratio may change after the information update and may cause the margin ratio to reach the top up/forced sell percentage. You may login to Mobile Banking/Internet Banking to check the latest margin ratio and make margin transfer timely.
The above information is for reference only. Customers should refer to their agreement with the Bank for the exact terms and conditions.
The Bank, at any time, may demand immediate payment of the facility in full, together with all accrued interest, fees and charges in connection with the facility.
The above products and services are subjected to relevant terms and conditions of the Bank. For details, please contact our staff at branch or through our securities services hotline (852) 3146 1888.
The above information is for reference only and does not constitute any offer, solicitation, invitation, advice or recommendation to subscribe for or redeem any investments.
The Chinese version of this page is for reference only. The English version will prevail if there is any inconsistency between the English and Chinese versions.

Risk Disclosure Statement

Investment involves risks. 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.

The risk of loss in financing a transaction by deposit of collateral or by obtaining a Loan from the Bank 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 for the Bank to execute contingent orders, such as "stop-loss" or "stop-limit" orders. You may be called upon at short notice to make additional margin deposits or interest payments. If the required margin deposits 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 the interest charged on your account. Therefore, you should carefully consider and assess whether such a financing arrangement (including obtaining a Loan from the Bank for financing a securities margin trading transaction) is suitable in light of your own financial position and investment objectives. This promotional content has not been reviewed by Securities and Futures Commission.

Information contained herein has been obtained from sources believed to be reliable. Shanghai Commercial Bank Ltd. has not verified and does not warrant or represent that such information is accurate or complete and it should not be relied upon as such. Shanghai Commercial Bank Ltd. accepts no liability for any loss or damage arising from any inaccuracies or omission or otherwise by reliance on any such information.

Reminders about Responsible Borrowing

You should have a clear understanding of your financial condition, daily expenses, and actual borrowing needs.
You should have assessed your repayment ability and avoid over-borrowing.
You should repay any outstanding balance on time to avoid late payment charges and additional overdue interest charged by the bank.
To borrow or not to borrow? Borrow only if you can repay!

In case you wish to enquire whether a third party is appointed by our Bank for referring credit card or loan application, please contact customer service hot line 2818 0282.