On March 21, Jinshi Data reported that the Hong Kong Securities and Futures Commission issued a circular on the evening of March 20, providing several additional guidelines for licensed corporations regarding initial public offering (IPO) subscriptions and financing services. One important guideline is to charge investors a minimum pre-subscription amount of 10% (i.e., a maximum allowable leverage of 10 times), which means that the phenomenon of 100 times new shares in the Hong Kong stock market will become history. The circular aims to strengthen the risk management mechanism, curb excessive market leverage, and protect investors from potential financial shocks. For ordinary investors, the biggest impact of this new regulation is that it continues to intensify the crackdown on individuals holding multiple accounts for subscriptions, while financing leverage has returned to the levels prior to the launch of the FINI system.
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Hong Kong Securities and Futures Commission: The maximum leverage allowed for Hong Kong stock IPO subscriptions and financing is only 10 times.
On March 21, Jinshi Data reported that the Hong Kong Securities and Futures Commission issued a circular on the evening of March 20, providing several additional guidelines for licensed corporations regarding initial public offering (IPO) subscriptions and financing services. One important guideline is to charge investors a minimum pre-subscription amount of 10% (i.e., a maximum allowable leverage of 10 times), which means that the phenomenon of 100 times new shares in the Hong Kong stock market will become history. The circular aims to strengthen the risk management mechanism, curb excessive market leverage, and protect investors from potential financial shocks. For ordinary investors, the biggest impact of this new regulation is that it continues to intensify the crackdown on individuals holding multiple accounts for subscriptions, while financing leverage has returned to the levels prior to the launch of the FINI system.