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Clients are now able to borrow stocks and short sell through Core Pacific-Yamaichi. |
Before borrowing stocks, client needs to open a Stock Borrowing and Lending (SBL) Account. Client needs to sign the following documents:
* 4 copies of Stock Borrowing and Lending Agreement
(2 will be used for doing registration in Inland Revenue Department, 1 will be given back to client)
* 2 Authorisation Forms
(Authorisation to deal with client money Form and Authorisation to dispose of,
lend or deposit Securities and/or Securities Collateral Form)
* 2 Stock Borrowing and Lending Agreement Registration Forms
(used for doing registration in Inland Revenue Department)
* New clients are required to open up a security trading a/c for Stock Borrowing and Lending settlement purpose.
If clients want to borrow stocks and do short selling, please contact relevant Account Executive at Core Pacific-Yamaichi.
Reminder:
i. Stock Return
-
Client buys back / deposits stock physically for stock return – cut-off time is
11:00am.
* The stock is considered to be returned on that day only when client notified CPY before 11:00am
* The stock is considered to be returned on the next day when client notified CPY after 11:00am -
Client is requested to return stock – cut-off time is 12:30pm.
* If the request is made before 12:30pm,the stock return notice is considered to be made on that day
ii. Client is responsible to pay back CPY the income which CPY is supposed to receive
during the stock lending period.
Example 1:
Client Chan Dai Man borrowed 1600 shares of HSBC and sold them at $87 on 7th May, on 8th May HSBC went ex
-dividend (HK$1 per share). Although Chan Dai Man did not receive the cash dividend, when he returns the stocks to CPY,he has to pay the dividend HK$1600 to CPY.
Example 2:
Client Chan Dai Man borrowed 1600 shares of HSBC on 7th May, on 8th May HSBC went ex-dividend (HK$1 per
share). Chan Dai Man sold the 1600 shares of HSBC on or after 8th May. Chan Dai Man received the cash dividend (less than HK$1600 because of the transaction charges, when he returns the stocks to CPY, he has to pay the exact amount of dividend HK$1600 to CPY.
For more information about CPY's financial products services, fax us at (852) 2918-0409,
or contact our Products Hotline: (852) 2166-3888 / 2826-0888
Minimum stock borrowing amount:
HK$100,000 (per stock)
Stock Borrowing and Lending related fees:
- IRD Registration Fee : HK$270 (One-off)
- Ticket Charge : HK$500
- Handling Fee :Waived 0.25% on Stock Borrowing Amount (Waived during promotion period)
- Loan Fee (differ from stocks)
- Shortsell Brokerage Commission 0.25%
- Ticket Charge : HK$500
- Handling Fee :
- Loan Fee (differ from stocks)
- Shortsell Brokerage Commission 0.25%
