The word "margin" comes from Hong Kong . In the Hong Kong market, banks and securities companies generally provide financing services to investors.
Investors who have opened "margin accounts" can make use of the amount of financing they provide for leveraged investment and magnify their returns when trading stocks. Under normal circumstances, securities firms or banks will charge certain interest rates to investors for this service.
For the new shares to be listed, each brokerage will decide on the amount that can be lent to customers to buy stocks according to its own risk assessment of the new shares, generally the maximum leverage multiple is not more than 9 times. That is, if there are HK $10000 in the account, up to HK $100000 in new shares can be financed, of which HK $90000 is the amount of financing. However, not all Hong Kong stocks can be used for pledge financing, and the pledge rates of different stocks are different.
No matter how many days after the purchase of the new share subscription, the financing interest will be calculated from the subscription deadline to the date of announcement of the results. Suppose that the deadline for subscription is November 4, November 12, and the results are announced on November 11, then the interest will be calculated from November 4, and the financing funds will be occupied for a total of eight days, with interest payable = 9000 / 2% / 8 / 365.