Hong Kong Stocks

Stock (also known as capital stock) is a form of security that indicates the ownership of a fraction of a corporation. A single share of stock represents the corporation's fractional ownership in proportion to the total number of shares. Therefore, a corporation can raise capital and funds by issuing stock certificates in the stock market, and those who own at least one share of stock are named as shareholders.

Shareholders reap the benefits of a business' success. These rewards come in the form of increased stock price or as financial profits distributed as dividends.

Conversely, it is also a risk when the share price invariably drops, causing shareholders to suffer declines in their portfolios' values.

After all, investing in the stock market has its advantages over cash saving in the long-term as it provides an opportunity for greater returns on money over time.

IPO Subscription

An initial public offering (IPO) is the first time a privately held company issues shares to the public, which leads to a market listing.

Going public is a way for a company to raise equity capital and monetize investments from private shareholders such as the founders of the company. It also enables easy trading of existing holdings or future capital raising by becoming publicly traded.

Investors can subscribe for IPO holdings through our broker to save their trouble of completing the IPO application form.

Every investor should refer to prospectuses of IPO and pick up important information related to the robustness of the company's business plan, its growth, and potential liabilities which could have an adverse impact on the valuation of the company's stock after listing.

Investors should familiarize themselves with the “How to apply for Hong Kong Offer Shares ' content in the prospectus to gain a better understanding of different available subscription methods and find the methods which cater to your needs and situation.

Structured Products Warrants & CBBC (Callable Bull/Bear Contracts)

Structured products are a relatively complex investment. A structured product is a pre-packaged structured finance investment strategy based on a basket of securities, debt issuance or foreign currencies, and derivatives. Derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset, index or security.

Some structured products are listed and traded on the stock exchange, such as warrants and CBBCs. Other structured products, such as currency-linked investment products and stock-linked investment products, are not listed and traded through intermediary companies (such as banks).

Structured products are different from general investment tools. Investing in structured products is complex with relatively higher risks than traditional investments and is therefore unsuitable for investors who do not have relevant investment experience and knowledge. Investors should refer to all the sales documents before making any investment decision.

Inline Warrants

Inline Warrants are a type of structured product that allows investors to generate returns during range-bound market and receives a pre-determined fixed payment at expiry.

At expiry, investors will receive HK$1 per inline warrant held when the underlying asset falls at or within the Upper and Lower Strikes (In-The-Range) or HK$0.25 per inline warrant held when the underlying asset falls outside the Upper and Lower Strikes (Out-of-The-Range). Due to the pre-determined fixed maximum payment at expiry of HK$1, an inline warrant should not be traded above HK$1. Investors will suffer a loss by buying an inline warrant above HK$1.s

Inline Warrants can be issued with a lifespan of six months to five years. Investors gain no rights in or to the underlying assets. Inline warrants can be bought and sold prior to their expiry on the cash market of HKEX and they are all settled in cash when exercised on expiry.

Inline Warrants are issued by a third party, usually an investment bank, independent of HKEX and of the underlying asset.

For more details. Please refer to:
https://www.hkex.com.hk/-/media/HKEX-Market/Products/Securities/Naming-Conventions-of-Stock-Short-Name-by-Product-Types/English-Inline-Warrant-Factsheet-v2_1_en.pdf?la=en

ETFs

Exchange Traded Fund (ETF) is an open-end fund that can be bought and sold on stock exchange. All ETFs listed on the Hong Kong Stock Exchange are collective investment schemes approved by the SFC. ETF follows the performance of related market benchmarks, such as indexes , in order to allow investors to invest in different types of markets in a cost-effective way.

The trading methods of ETFs are similar to other securities. Investors can trade through brokers at any time during market hours. Investors should analyze the level of risk and understand the details of individual products. Investors must refer to individual ETFs' prospectus and website and consult their securities firms about the product's pros and cons.

Synthetic ETFs are subject to counterparty risks involving issuers of derivatives. For more information regarding ETFs, please visit the Hong Kong Stock Exchange website for further understanding.

For more details, please refer to:
https://www.hkex.com.hk/Global/Exchange/FAQ/Products/Securities/ETP?sc_lang=en#collapse-3