FAQ - IPO Subscription

Types of IPO Subscriptions

Standard subscription and bank financing subscription are currently supported.

FAQ - Standard Subscription

1. Q: What part of the funds are used for standard subscriptions?

A: Users can apply for a standard subscription with collateral financing or the available cash in their account position. The cash needs to be paid for all transaction fees incurred such as withdrawal submission, stock purchase, fund purchase, etc. It will cause debit financing and interest will be charged according to the "Financing Rate” if the withdrawable amount in your account is insufficient on the subscription deduction date.

2. Q: When will my funds be deducted if I choose the standard subscription?

A: Your subscription funds will be locked in real-time after the application is initiated and will be deducted on the subscription cut-off date.

3. Q: How are the funds calculated after the announcement of allotment results for standard subscriptions?

A:

• If your lots are not allotted, the deducted principal will be returned to your account on the announcement day;
• If your lots are allotted in full, your holdings will increase and you can trade as usual during the pre-IPO time;
• If your lots are partially allotted, the allotted shares will be credited into your account, and the over-deducted principal that is not allotted will be returned to your account after the announcement of allotment results.

4. Q: Can I amend or cancel a standard subscription?

A: You can amend or cancel your subscription before the cut-off date. Path: launch “App”- “Market” - “IPOs” - “Orders”.

Note: It is recommended that you pay attention to the cut-off date on the subscription page to avoid unsuccessful applications after cancellation.

FAQ - Bank Financing Subscription

1. Q: Do I have to have cash in my account for bank financing subscriptions?

A: The maximum financing ratio of our bank financing subscription is 97% of the subscription amount, so you need to have at least 3% of HKD cash in your account. If your account is short of HKD cash, you can use your stock holdings as collateral to borrow money. If your account is short of HKD cash and your stock holdings are not enough as collateral, you can deposit HKD or convert currency and submit an IPO subscription order (the financing coefficient will rise, unlike the financing coefficient of common stock).

Different leverages for financing subscriptions require different cash ratios, depending mainly on the financing amount used for your subscription.

2. Q: When will my principal be deducted if I choose the bank financing subscription?

A: Your subscription principal will be locked in real-time after the application is initiated and will be deducted on the subscription cut-off date.

3. Q: When will my financing amount be deducted if I choose the bank financing subscription?

A: When you submit a bank financing subscription, the amount of bank financing will be recorded first and deducted on the announcement day of allotment results.

4. Q: How is bank financing interest calculated? Does it have anything to do with the time of application?

A: Daily interest of IPO bank financing = Financing amount x (Bank financing rate / 365).

• Start date of interest accrual: the cut-off date of IPO subscription. It doesn't matter if the application is sooner or later, and the interest will be calculated from the cut-off date.
• Cut-off date for interest accrual: the day before the announcement of allotment results. The deduction will be made on the day of allotment, and then you can trade during the pre-IPO time after the announcement of allotment results.

5. Q: I have applied for a bank financing subscription, and now I deposit funds, how do I deal with the repayment?

A:

1. If the amount that can be withdrawn from your account on the deduction day does not meet the principal requirement, it will cause currency financing, which will be automatically repaid after funds are credited into your account (the currency must be the same as the financing currency, and different currencies need to be converted for repayment);
2. The bank financing part (i.e. the maximum 97% borrowing in addition to the principal) cannot be repaid in advance and will be deducted according to the allotment status on the announcement day. If the account balance is sufficient at the time of deduction, no further financing will be incurred.

6. Q: How are the funds calculated after the announcement of allotment results for bank financing subscriptions?

A: After the announcement of allotment results:

• If your lots are not allotted, the deducted principal will be returned to your account on the announcement day;
• If your lots are allotted in full, your holdings will increase and you can trade as usual during the pre-IPO time;
• If your lots are partially allotted, the allotted shares will be credited into your account, and the over-deducted principal that is not allotted will be returned to your account after the announcement of allotment results.

7. Q: What should I do if a margin call is triggered after the announcement of allotment results of the bank financing subscription?

A: After the announcement of allotment results, a margin call will be triggered and issued to you if the margin ratio of your account is insufficient. Please make sure to deposit a sufficient margin before 14:00 on the listing trading day. Otherwise, we have the right to close your position without prior notice.

8. Q: When is bank financing interest deducted?

A: Bank financing interest is deducted on the announcement day of allotment results.

9. Q: Do I have to use the maximum financing ratio for bank financing subscriptions?

A: No. Different financing ratios may be available for your subscription, and you can choose according to the detailed ratios and your own situation.

10. Q: Can I amend or cancel a bank financing subscription?

A: You can amend or cancel your subscription before the cut-off date. Path: launch “App”- “Market” - “IPOs” - “Orders”.

Note: It is recommended that you pay attention to the cut-off date on the subscription page to avoid unsuccessful applications after cancellation.

Allotment Results Query

1. The allotment results are announced by 16:00 on the trading day before the listing. Please pay attention to the App notification.
2. Clients who have opened an account with HK identity documents can check the allotment results through the HKEXnews website, but clients in other countries/regions may not be able to check the allotment results through HKEXnews due to issues with their identity documents.

Other Frequently Asked Questions

1. Q: Can I apply for a standard and bank financing subscription simultaneously?

A: No, you can only choose one or the other.

2. Q: How long does it take for the deposited funds to be available for IPO subscription?

A: The deposited funds can be used after the bank has confirmed their arrival and credited them into your account (some banks may credit funds the next day). If a debit balance is in your account, the deposited funds will be used to repay your debt. You can use the collateral in your position for an IPO subscription after your debt is paid off.

Note: Whether you can use the collateral in your position for IPO subscription depends on the health status of your account.

3. Q: How long does it take for the funds from selling stocks to be available for IPO subscription?

A: Funds from selling stocks can be used to place a subscription order on the same day. However, shares sold on the same day are usually settled on the T+2 trading day and can be used to pay subscriptions directly if settlement is completed on the deduction day; if not, it may cause debit financing.

4. Q: What are the allotment rules for IPO subscription? Is it true that the more you subscribe, the more you get allotted?

A: No, the allotment results of Hong Kong IPO are decided by lottery, and the rules are determined by HKEX.

5. Q: Can I get a refund of the subscription fees if my lots are not allotted?

A: The subscription fees shall be paid regardless of the allotment results and are deducted on the cut-off date of the subscription.

In case of postponement or cancellation of the listing arrangement of IPO shares, subscription fees are still required to be paid.

6. Allotment Fees

A total fee of 1.0085% will be charged if your lots are allotted.