SBL Procedure | Stock Borrowing & Lending | Products

Stock Borrowing

Open SBL account in Phillip Securities (HK) Ltd
Call 2277 6622 to check whether Phillip has the stock that you want to short sell

Short Sell

If we have the stock you want to short sell, you can place short sell order through our dealers.
For example, successfully short sold 10 lots of Hang Seng Bank (00011.HK) with selling price $100.
Client has to deposit $25,000 into securities account for collateral at T day (transaction day).
($100 x 10 lots x 100 shares per lot x 25% = $25,000)
At T+2 day, Phillip transfers $125,000 from client’s stock account to SBL account.
($100,000 is principal of short sell)

Maintenance margin – example 1

	Maintenance margin: 115% of market value at the time
	If price of Hang Seng Bank (00011.HK) is $90
	Margin ratio = 138% 【125,000 / 90*1,000】
	No need to deposit for margin
	Moreover, client can withdraw part of collateral to stock account. Available amount is $12,500 【125,000-$90x1000x1.25】

Maintenance margin – example 2

	Maintenance margin: 115% of market value at the time
	If price of Hang Seng Bank rises to $110
	Margin ratio =114%【125,000 / (110*1000)】 < 115%
	Required to deposit
	Required to be deposited margin：$12,500 【1.25(1101000) - 125,000】

Stock Return

Hang Seng Bank drops down to $92, client decides to buy back and return stock.
Client can buy stock through online or your Account Executive normally. Inform us after buy back,
otherwise the return process will not be handled.
At T+2 day of buy back stock, Phillip return the $125,000 margin to client’s stock account, and withdraw the stock for return.
Loan fee will be deducted from stock account at return day (T+2 of buy back).