Stock Borrowing & Lending allows you to boost your opportunities by “short selling” for a longer duration and potentially benefit even if the stock market is going through a downward trend. Shorting is a classic strategy to potentially benefit when the momentum of stocks or overall trend of the market is declining. Short positions are taken not only on simple speculative bets but can also be used to execute trading strategies such as rights arbitrage, pairs trading and index arbitrage. Essentially, short positions are covered by SBL through the use of the borrowed securities to settle an outright sale.

Available Short Sell Stock List
Stock Code	Stock Name	Stock Code	Stock Name	Stock Code	Stock Name
Welcome to call us at 22776622, SBL Department for the short sell stocks
4	WHARF HOLDINGS	493	GOME	1109	CHINA RES LAND
5	HSBC HOLDINGS	494	LI & FUNG	1114	BRILLIANCE CHI
13	HUTCHISON	546	FUFENG GROUP	1174	PACIFIC ANDES
16	SHK PPT	552	CHINACOMSERVICE	1186	CHINA RAIL CONS
17	NEW WORLD DEV	590	LUK FOOK HOLD	1200	MIDLAND HOLDING
20	WHEELOCK	696	TRAVELSKY TECH	1211	BYD COMPANY
27	GALAXY ENT	700	TENCENT	1333	CHINA ZHONGWANG
83	SINO LAND	728	CHINA TELECOM	1398	ICBC
177	JIANGSU EXPRESS	751	SKYWORTHDIGITAL	1880	BELLE INT`L
178	SA SA INT`L	762	CHINA UNICOM	1919	CHINA COSCO
189	DONGYUE GROUP	763	ZTE	2007	COUNTRY GARDEN
200	MELCO INT`L DEV	811	XINHUA WINSHARE	2388	BOC HONG KONG
242	SHUN TAK HOLD	857	PETROCHINA	2600	CHALCO
267	CITIC PACIFIC	868	XINYI GLASS	2628	CHINA LIFE
308	CHINA TRAVEL HK	882	TIANJIN DEV	2688	ENN ENERGY
322	TINGYI	883	CNOOC	2800	TRACKER FUND
330	ESPRIT HOLDINGS	939	CCB	2866	CSCL
363	SHANGHAI IND H	941	CHINA MOBILE	3323	CNBM
386	SINOPEC CORP	1038	CKI HOLDINGS	3333	EVERGRANDE
388	HKEX	1044	HENGAN INT`L	3988	BANK OF CHINA
486	RUSAL	1088	CHINA SHENHUA

	Buy PUT derivative Warrant	SBL – short sell
Liquidity	Single liquidity provider/ AMS (Automatic Order Matching and Execution system)	AMS (Automatic Order Matching and Execution system)
Bid-ask spread	Determined by liquidity provider	Usually has smaller spread size
Expiry	Expiry date is determined by issuer	No expiry date
Profit / Loss	Factors involved stock price, volatility, outstanding quantity etc.	Stock price

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).

IRD Registration Fee
$300. Charge once only.
Half-Year Admin Fee
$100. Calculating period at Jul-Jun/ Jul-Dec, only for short-sell/ return in that period.
Loan Fee
P+3% with min. loan fee $200 (subject to change).

Choosing stock for collateral, client still can’t withdraw the principal of short sell.
If stock ex-dividends during stock borrowing, Phillip will deduct dividend from client’s stock account at book closed date.
There has no time limit on stock borrowing, but Phillip has the right to request borrower to return stock in specific time.
Clients with cash or margin account can open a SBL account.

Contact Us

Enquiry or Account Opening：Please contact your account executive or call 2277 6622

Email：sbl@phillip.com.hk