Hong Kong Stock Loan

 

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.


 * Minimum Loan Amount:   $500,000 USD

 * Maximum Loan Amount:  $100,000,000 USD

We also offer a Block Trade for Hong Kong stocks

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 transaction.

   *  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
   *  Private & Confidential

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 investments.

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).

APPLICATION

 

Hong Kong Stock Loan
 

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