|Get Started||Login & System Requirement||E-Statement||Trading||Fees & Settlement||Other Services|
|Change/Update Information||eIPO||Forms||User Guides|
Stock Borrowing Services
1. How to open Stock Borrowing Account in UOB Kay Hian (HK)?
To open Stock Borrowing Account, you must already have an existing trading account with UOB Kay Hian (HK). Clients are required to sign the following documents to open Stock Borrowing Account:
|1.||Stock Borrowing and Lending Agreement|
|2.||Letter appointing UOB Kay Hian (Hong Kong) Limited to submit Returns of Stock Borrowing Transactions|
|3.||Authorisation for maintaining Stock Borrowing Ledger and submit of returns|
|4.||IRD Form Stock Borrowing and Lending Agreement Registration Form (In Duplicate)|
2. What is the charge involved in stock borrowing services?
The charge involved is as follow:
|Initial SBL agreement registration||HK$500|
|Half yearly Return of Stock Borrowing Transactions:||HK$200|
|Per stock borrowing transaction:||as per interest cost, subject to HK$500 minimum + 0.125% of day end market value per stock base|
Interest cost will be charged on a per stock basis, based on the interest rate for that particular stock times the day-end market value of that stock.
3. What is the margin requirement for each stock?
For blue chips stock, 25% is required, and for others non-blue chips stock, 35% is required.
4. What happen if I borrowed and sold the stock during the ex-dividends period?
If a stock is borrowed and sold before ex-dividend date but buy-back after ex-dividend date, the borrower has to repay the lender the dividend amount in full, even though the borrower is not entitled to the dividend. For stocks having ex-dividend date during the stock borrowing period, dividends received by the borrower has to be repaid to lender in full, i.e. before deduction of charges.
5. When will I receive margin call?
If customer borrow and short sell blue chips stock, the maintenance margin is 115%* of the borrowed value, if customers’ cash balance fall below 115%, then our Credit Department will make margin call.
If customer borrowed and short sell 4000 shares HSBC @ $80, then customers need to deposit initial margin of $80,000 ($80 * 4000 * 25%), the total account cash balance is $ 400,000, and the maintenance margin required is $368,000 ($80 * 4000 * 115%), if the stock price of HSBC rise to $92.1, then customer will receive margin call as the balance fall below the maintenance margin
($400,000 / $92.1 * 4000) < 115%
For those non-blue chips stock, the maintenance margin is 125%
* UOB Kay Hian (Hong Kong) Limited reserves the right to amend these terms and conditions at any time without prior notice.
6. After opened the Stock Borrowing Account, what should I do to short sell stock?
Client can consult related Account Executive if the desired stock is available for short selling, if the stock is available, Account Executive will help you to make the arrangement.
7. What should I do if I wish to return the securities after a buy-back?
A buy-back does not automatically translate into a return of securities. You are required to inform us to arrange for a return after a buy-back.
8. What happens in the event of a recall of the borrowed securities?
If you receive a notice of recall before 12:00pm, you will have to buy back the borrowed security on the same day to return 2 business days later.
9. What are the designated securities eligible for Short Selling?
For the designated securities eligible for Short Selling, please refer to the HKEx’s page* below:
* For reference only and subject to availability of the stocks in UOB Kay Hian (HK) Limited.
- +852 2136 1818
- Night Futures/
US Trading 24-hour Service Hotline:
- +852 2826 4888
- Email :
- Operating hours:
- 9:00am-6:00pm Mon-Fri,closed on
- Sat,Sun,and HK Public Holidays