Stock Borrowing and Short Selling
“Short Selling”, selling a stock that you do not own, is prohibited under the Hong Kong laws. The only exception is if, at the time of the sale, you honestly believe that you have a presently exercisable and unconditional right to sell the stock. To grasp the profit opportunity through a downward trend, you can “Short Selling” the particular stocks through our Stock Borrowing service.
If you are interested in our Stock Borrowing service, please contact your Account Executive for application. You can place the short selling order verbally with your Account Executive once the Stock Borrowing service is enabled. However, you must take note that not all of the listed stocks are covered by our Stock Borrowing.
For details, please contact your Account Executive or Hong Kong Customer Hotline (852) 2250 8298 and Mainland China Toll-Free Customer Hotline at 400-120-0363.
Basic Concept of Stock Borrowing
Selling a stock that you do not own is prohibited under the Hong Kong laws. The only exception is if, at the time of the sale, you honestly believe that you have a presently exercisable and unconditional right to sell the stock. You can short selling the designated stocks by entering a Stock Borrowing arrangement with SWHY through our Stock Borrowing service to grasp the profit opportunity in a downward trend.
The comparison between Derivative Warrants and Stock Borrowing Services:
|Derivative Warrants (Put)||Stock Borrowing (Short Selling)|
|Designated Stocks||Limited stocks provided by the issuer (most of the stock constituents for Hang Seng Index or H Shares Index)||The stocks constituents is not limited to Hang Seng Index or H Shares Index|
|Expiry||Expiry date is determined by issuer||No expiry date|
|Profit / Loss||Involved factors such as stock price, volatility, outstanding quantity etc.||Stock price|