Stock Financing Service
BNU Stock financing service is a stock collateralized credit facility that provides you extra funds to grab investment opportunities for buying additional stocks, or withdraw cash to your personal account. For example, you can pledge your US stock to finance your stock trading in Hong Kong market with flexibility.
Over 18,000 stocks listed in Hong Kong, U.S., Japan, Singapore and Australia markets can be used as collaterals for Stock Financing, with financing ratios up to 70%!
BNU Stock Financing service provides you flexibility in your liquidity, effortlessly strengthen your buying power by pledging your holdings in the 5 major stock markets, to purchase from 12 stock markets or withdraw cash in your personal account.
Over 18,000 stocks listed in Hong Kong, U.S., Japan, Singapore and Australia markets can be used as collaterals for Stock Financing. Different stock markets valuation of the collateral is done in real-time in accordance with the correspondent trading hours.
You can trade freely across multiple markets. Stock Financing facilities enable you to buy securities listed in Asia Pacific or U.S. (12 markets are included), or to be withdrew to your cash account whenever necessary.
Valuation of collaterals is mark-to-market with fair valuation of collaterals with high transparency. Even if the collaterals in your portfolio are listed on different markets, the valuation of each collateral will be reflected in real-time in accordance with corresponding trading hours. You can closely monitor your margin positions, anytime and anywhere.
- Preferential interest rate: Hong Kong Prime Rate - 2%
- Provide credit facilities as much as 70% of the market value of your securities holding, with maximum cap of up to HKD500,000
- Hong Kong Dollar as settlement currency for all markets
- Interest calculation: Daily accrual basis
- Start and end date of interest calculation: Settlement days after buying or selling of securities, or the date of cash withdrawal/deposit
- BNU investment account withdrawal/deposit period: 6am – 8pm, Monday to Friday
- Interest Payment: Interest shall be computed on a daily accrual basis and paid at the end of each month by customer. In case customer account does not have sufficient funds for settlement of the relevant interest the amount will be deducted in the Stock Financing Credit Limit.
Frequently Asked Questions
1. What are the stocks that can be used as collateral for BNU Stock Financing?
All stocks listed in Hong Kong, U.S. (including NYSE, NYSE MKT, NYSE Arca and NASDAQ), Japan Nikkei 225 Indexes, Australia and Singapore markets can be used as collateral for Stock Financing ("marginable stocks"), except for warrants, suspended, illiquid and "penny" stocks. Please login and refer to “Margin Description” for details.
2. What is the Stock Financing percentage (“margin ratio”) of the marginable stocks?
The financing ratio is ranged from 10% to 70% of the market value of the marginable stocks. Maximum financing ratios vary by marginable stocks. Please login and refer to “Margin Description” for details.
3. How to pay interest generated by Stock Financing facilities?
Interest shall be computed on a daily accrual basis and paid at the end of each month by customer. In case the customer’s account does not have sufficient funds for settlement of the relevant interest, the interest amount will be deducted in the Stock Financing credit limit of the customer.
4. What is “Margin Call”?
When the amount you borrowed (i.e. Stock Financing loan) is higher than the available amount of Stock Financing facility (i.e. marginable stock value) in your account, there will be a margin call. It is generally due to the fall of market price of the marginable stocks (the collaterals) you are holding. When the market value of the collaterals decreases, the value of your financing facilities will decrease accordingly.
For application and more information, please feel free to contact our Relationship Manager or call our 24-hour Customer Service Hotline on 2833 5533.
Investment involves risks and the price of any investment products may fall as well as rise, and may fluctuate dramatically, and may become valueless. It is as likely those losses will be incurred rather than profit made as a result of investment. Past performance is no guide to its future performance.
Before making any investment decision, investors should consider and evaluate their own investment objective, risk tolerance, investment experience, expected return, overall needs, financial situation and other criteria.
Investors should understand the risk and nature of the transaction, and read carefully the terms and conditions in the related offering documents, particularly the risk factors, before investing so that you understand the nature of all of the risks, and if you have any question on the content of this document, you should seek other independent and professional advice.
Risk of Stock Financing Trading
The risk of loss in financing a transaction by deposit of collateral is significant. The Client may sustain losses in excess of the Client's cash and any other assets deposited as collateral with BNU. Market conditions may make it impossible to execute contingent orders, such as "stop-loss" or "stop-limit" orders. The Client 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, the Client's collateral may be liquidated without his consent. Moreover, the Client will remain liable for any resulting deficit in his account and interest charged on his account. The Client should therefore carefully consider whether such a financing arrangement is suitable in light of his own financial position and investment objectives.