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Do you own any stocks that
are traded on the Hong Kong
stock exchange?
We offer a number of highly
customized securities based loan
programs for securities traded
on the Hong Kong stock exchange.
You can pledge the stocks you
own to apply for a securities
based collateral loan.
*
Minimum Loan Amount: $500,000
USD
* Maximum Loan Amount:
$100,000,000 USD
The legal documents include the
following statement for the
safety and protection of the
borrower client:
"Lender may not take, use,
sell or otherwise, encumber or
dispose of the securities
contained within the Stock Loan
Portfolio unless an “Event of
Default” occurs".
An escrow letter and legal
documents are provided to the
borrower client. Initially, the
shares are transferred into an
Attorney escrow account. The
escrow agent attorney arranges
for the transfer of shares from
the client and the disbursement
of the loan funds. The escrow
agent will immediately forward
the loan funds from the escrow
account to the client borrower.
Electronic delivery and transfer
is arranged through the CCASS,
Hong Kong bank and Hong Kong
brokerage firm. Again, this is
done for the safety and
protection of the borrower
client. Furthermore, if the
client requires, we can arrange
for a Chinese representative to
assist the Escrow attorney agent
to ensure a smooth transaction.
* Non-Recourse Loan
* No trading or selling of
shares
* Competitive fixed interest
rate
* Borrower keeps any dividends
* Borrower keeps any
appreciation
* Flexible loan terms
* Borrower retains voting
rights
The Hong Kong Stock Exchange (HKEX;
SEHK: 0388) is the stock
exchange of Hong Kong. The
exchange has predominantly been
the main exchange for Hong Kong
where shares of listed companies
are traded. It is Asia's second
largest stock exchange in terms
of market capitalization, behind
the Tokyo Stock Exchange. As of
31 December 2007, the Hong Kong
Stock Exchange had 1,241 listed
companies with a combined market
capitalization of $2.7 trillion.
Hong Kong Exchanges and Clearing
is the holding company for the
exchange.
The HKSE ranks 8th place by
market capitalization in the
world.
The trading system of the
Exchange is an order-driven
system. HKEx securities market
operates on two trading
platforms - the Main Board and
the Growth Enterprise Market
(GEM). Each trading platform has
a different set of requirements.
The Main Board is the market for
capital growth by established
companies that meet profit
requirements. Meanwhile, the
Growth Enterprise Market
provides a fund raising venue
for 'high growth, high risk'
companies. It promotes the
development of technology
industries and venture capital
investments.
In Hong Kong, there is a strong
presence of the world's major
financial institutions: 167
foreign banks including 85 of
world's top 100 banks, 323
overseas securities and
commodity trading companies, 122
overseas insurers, and 1,182
unit trusts and mutual funds.
Hong Kong is a free economy with
well established laws for
finance and commerce.
Non-residents can efficiently
trade stocks in Hong Kong. Hong
Kong's stock market is directly
linked to the bullish China
economy which has been growing
at a rate of 8-13% during the
last decade. There is an
increasing number of major
Chinese corporations offering
stocks in Hong Kong (the H Share
Companies). Hong Kong dollar is
internationally exchangeable at
a very constant rate against US
dollar (US$1=HK$7.73).
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