Margin Financing Related FAQs

How to Calculate Financing Interest

Financing interest accrues on the actual amount of the account after settlement. Financing interest on a given day = the financing balance after the market closes on the trading day × (financing interest rate/365); a minimum amount of 0.01 in any single currency is required for interest to accrue. No interest will accrue on a single currency that is less than 0.01.

Clients who use financing to purchase stocks will owe cash. The actual time that an account is in arrears is calculated from the date on which clearing is completed. For example, the clearing time for Hong Kong stocks is T+2, meaning that interest starts to accrue on T+2. Interest accrues daily and is settled on a monthly basis.

Note:

1. The financing interest rate may be adjusted periodically without prior notice to adapt to changes in currency exchange rates;
2. The number of financing days is calculated as 365 calendar days in a year.

How to Adjust Credit Limits

Clients who wish to adjust their credit limit may go to "Assets" - "Financing Status" to check whether the button for requesting financing limit adjustments is displayed. If displayed on the page, clients may click the button to initiate the request to adjust their limit. If the button is not displayed, the client may ask the dedicated customer service manager to initiate the request (such a request does not guarantee success)

Reminder: In-app requests for financing limit adjustments may only be sent twice within a 24-hour period

Methods for Repayment of Financing Debts

Presently, there are generally three ways to repay financing debts:

1. If other currencies have sufficient balances to repay financing debts, clients may use the currency exchange function to convert into the corresponding currencies to make up an outstanding balance
2. Deposits: Priority will be given to clients to make deposits to cover their outstanding balances. Interest will no longer accrue on the outstanding amount covered by the deposit once the incoming funds arrive in the client's account
3. Selling stocks: After stocks are sold, For example, the clearing time for Hong Kong stocks is T+2 days. Therefore, on T and T+1 days after the stocks are sold, the account will still be in arrears and financing interest will accrue on any single currency of 0.01 or higher.

IV. Time for Repayment of Financing Debts

The settlement time of Long Bridge Securities US/Hong Kong stocks is 17:00 (Hong Kong time) every trading day.

Example 1

Assuming that the customer used margin financing to buy HK stocks on January 1 (Hong Kong time) , the statement date is January 1. Depositing the margin deficit (including relevant transaction fees) before 17:00 (Hong Kong time)  on January 3rd will not incur financing interest.

Example 2

Assuming that the customer used margin financing to buy US stocks on January 1 (Hong Kong time) , the statement date is January 2. Depositing the margin deficit (including relevant transaction fees) before 17:00 (Hong Kong time)  on January 3 will not incur financing interest.