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FAQ About IPO Margin Financing

FAQ About IPO Margin Financing


1. What is IPO Margin Financing?

uSMART supports two ways of IPO subscription: cash subscription and margin subscription.

Margin subscription allows you to borrow money from uSMART for IPO subscription. Financing interest will be charged.


2. What are the requirements for the subscription, what is the maximum margin ratio?

According to the compliance requirements of the Hong Kong Stock Exchange, You can borrow up to 90% of the total subscription amount. The maximum margin ratio of each stock is different, you can check the details at the time of IPO subscription.


3. Can the subscription of the exhibition be cancelled or modified?

You cannot cancel a submitted margin subscription. Cannot change it to cash subscription. You can increase the subscription quantity only.


4. How is the interest rate calculated?

Margin interest = margin amount * margin rate / 365 days * interest-bearing days. The interest-bearing days = calendar days from the subscription cut-off date to the stock listing date, including Saturday and Sunday.

Regardless of whether you are allotted any shares, you must pay margin interest.


5. After the IPO results announcement, how will the margin be handled?

On the IPO allotment day, we will deposit the allotted shares and/or the refund amount (if any, excluding handling fee and interest) into your securities trading account. Margin amount will be returned to uSMART.


6. Important Note

According to the regulations of the Hong Kong Stock Exchange, your positions will be partially or totally liquidated immediately without any further notice when your account value in the market is lower than the maintenance margin requirement.