block trades for stocks trading on the Hong Kong stock exchange.
A block trade comprises of large buy and sell
orders privately negotiated apart
from the public auction market. Depending upon the number of shares, they are
typically completed in tranches. Benefits to the market place include
price and execution certainty for large sized deals; and Clearing House
guarantees for transactions that may otherwise have been executed
over-the-counter (OTC); and added liquidity.
Do you own
any stocks that are traded on the Hong Kong stock exchange?
We offer a number of highly customized securities based loan programs for
securities traded on the Hong Kong stock exchange. You can pledge the stocks you
own to apply for a securities based collateral loan.
The legal documents include the
following statement for the safety and protection of the borrower client:
"Lender may not take,
use, sell or otherwise, encumber or dispose of the securities contained within
the Stock Loan Portfolio unless an “Event of Default” occurs".
An escrow letter and legal documents are provided to the borrower client.
Initially, the shares are transferred into an Attorney escrow account. The
escrow agent attorney arranges for the transfer of shares from the client and
the disbursement of the loan funds. The escrow agent will immediately forward
the loan funds from the escrow account to the client borrower. Electronic
delivery and transfer is arranged through the CCASS, Hong Kong bank and Hong
Kong brokerage firm. Again, this is done for the safety and protection of the
borrower client. Furthermore, if the client requires, we can arrange for a
Chinese representative to assist the Escrow attorney agent to ensure a smooth
* Non-Recourse Loan
* No trading or selling of shares
* Competitive fixed interest rate
* Borrower keeps any dividends
* Borrower keeps any appreciation
* Flexible loan terms
* Borrower retains voting rights
The Hong Kong Stock Exchange
(HKEX; SEHK: 0388) is the stock exchange of Hong Kong. The exchange has
predominantly been the main exchange for Hong Kong where shares of listed
companies are traded. It is Asia's second largest stock exchange in terms
of market capitalization, behind the Tokyo Stock Exchange. As of 31 December
2007, the Hong Kong Stock Exchange had 1,241 listed companies with a combined
market capitalization of $2.7 trillion. Hong Kong Exchanges and Clearing is the
holding company for the exchange.
The HKSE ranks 8th place by market capitalization in the world.
The trading system of the Exchange is an order-driven system. HKEx securities
market operates on two trading platforms - the Main Board and the Growth
Enterprise Market (GEM). Each trading platform has a different set of
requirements. The Main Board is the market for capital growth by established
companies that meet profit requirements. Meanwhile, the Growth Enterprise Market
provides a fund raising venue for 'high growth, high risk' companies. It
promotes the development of technology industries and venture capital
In Hong Kong, there is a strong
presence of the world's major financial institutions: 167 foreign banks
including 85 of world's top 100 banks, 323 overseas securities and commodity
trading companies, 122 overseas insurers, and 1,182 unit trusts and mutual
funds. Hong Kong is a free economy with well established laws for finance and
commerce. Non-residents can efficiently trade stocks in Hong Kong. Hong Kong's
stock market is directly linked to the bullish China economy which has been
growing at a rate of 8-13% during the last decade. There is an increasing number
of major Chinese corporations offering stocks in Hong Kong (the H Share
Companies). Hong Kong dollar is internationally exchangeable at a very constant
rate against US dollar (US$1=HK$7.73).