Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
HK SFC Plans to Limit Brokers' IPO Margin Lending to 90%; SFC: Investigations into 8 Brokers Completed
Recommend 12 Positive 15 Negative 18 |
||||
|
||||
|
The Securities and Futures Commission of Hong Kong (SFC) is consulting the industry for views on IPO margin, including the reinstatement of the previous practice of charging a 10% deposit, and is also considering giving flexibility to brokers, whereby a portion of the deposit can be pledged against clients' stock positions, but no final decision has yet been made, Hong Kong media quoted sources as saying. The SFC responded that it would not comment on market rumors, and said that it had commenced thematic examinations on 8 brokers. The results of the assessments and further regulatory guidance would be announced to the industry shortly. Under HKEX (00388.HK)'s IPO settlement platform FINI, investors can pay for the subscribed shares only after they have been allocated the subscribed shares, and some brokers provided their clients with extra large leverage to undertake large amounts of margin, which led to the emergence of the “oversubscription king” in some of the IPOs. AAStocks Financial News |
||||
Copied to Clipboard
 |
||||
