3) Hong Kong (HKEX) Stocks & ETFs
1. Monday to Friday:
[Pre-opening Session]
At-auction Session:
HKT 9:00am-9:20am At-auction orders can be entered and amended
HKT 9:20am At-auction orders get processed by HKEX
HKT 9:30am Pending at-auction orders are cancelled automatically
Note: At-auction market orders during this session will be cancelled.
At-auction Limit Session:
HKT 9:00am-9:15am At-auction limit orders can be entered and amended
HKT 9:15am-9:20am At-auction limit orders entered will be cancelled automatically at 9:30am
HKT 9:20am At-auction limit orders get processed by HKEX
HKT 9:30am Pending at-auction limit orders continue to be listed on HKEX
Note: Some at-auction limit orders entered during the pre-opening session, are automatically extended to the continuous trading period. Some at-auction limit orders will be automatically cancelled after amendation, depending on whether the order is accepted by HKEX during the pre-opening session.
[Continuous trading period]
Also called regular trading period: HKT 9:30am – 12:00pm and HKT 1:00pm – 4:00pm
2. Minimum trading unit and stock price rules for HK stocks
The minimum trading unit for HK stocks is “1 lot”, which may equal 100 shares, 500 shares, 1,000 shares, 2,000 shares, etc., depending on the stock price. For example, 1 lot is equal to 100 shares for Tencent Holdings Ltd and 500 shares for BYD AUTO. Where shareholdings are less than 1 lot, it is called “odd lot”. For instance, in Tencent Holdings Ltd, 1 lot equals 100 shares, so if one holds 150 shares of Tencent, then 50 shares thereof become odd lot. Odd lot usually occurs when a company carries out bonus issue or rights issue.
3. Fluctuation of HK stock price
As the US stock market, the HK stock market is not subject to a 10% limit up/down system.
4. Intraday trading
Day trading is allowed. HK stocks are subject to the T+0 trading system, that is, stocks can be bought and sold on the same day. There is unlimited T+0 trading frequency both for HK stocks and US stocks.
5. Margin trading
Available now.
6. Short Selling
Available now.
7. HK stock settlement arrangement
HK stocks trading is subject to the T+2 delivery system, that is, for shares traded today, the securities company and clearinghouse will carry out the settlement and delivery of funds and shares on the second workday.
8. Introduction to corporate action
Actions of listed companies refer to events that are published by the issuer of listed securities and will directly or indirectly influence changes of such listed securities, which will influence the interests of stockholders of such listed securities.
Common corporate actions include cash dividend, bonus issue, rights issue, privatization, stock split/merger, etc.
(1) Cash dividend
Cash dividends refer to dividends and bonus payments made in the form of cash. Cash paid to shareholders by a company are often provided by current earnings or accumulated profits of the company
(2) Bonus issue
Bonus Issue refers to dividend and bonus payments made in the form of security. For the listed companies, it is a method of Capitalisation Issue, which means further allocation of securities to existing shareholders as per their respective security holding ratio.
(3) Rights issue
Rights Issue, a fundraising way for the listed companies, refers to existing security holders providing offers to subscribe securities as per their respective current security holding ratio. When a company announces a rights issue, its existing shareholders will receive the rights. Any shareholder who objects to rights issue may waive the rights by selling the rights on the market.
(4) Privatisation
Privatisation is often proposed by the controlling shareholder in order to buy all shares of a minority shareholder in the form of cash or security with a cash option. The listed companies may complete privatization through “acquisition” or “scheme of arrangement”. Upon completion of privatization, the listed companies can apply to stock exchanges for the cancellation of their respective listing status.
(5) Stock split, merger and conversion
Stock split, merger and conversion mean exchanging the existing listed securities for new securities. Among them, stock split refers to splitting the existing eligible securities into “new” shares with lower par value; stock merger refers to merging several existing eligible securities into a “new” share with higher par value.
(6) Stock warrant conversion
A stock warrant holder has the right to subscribe a specified quantity of securities at a specified “subscription” price or exercise the stock warrant at a specified “exercise” price and receive the corresponding proceeds during the exercise period or on a specified exercise date. Stock warrant conversion refers to exchanging the stock warrant for a specified quantity of securities at a specified “subscription” price.
9. Statement of order handling using price capping
In accordance with regulatory obligations, brokers are expected to have certain controls in place to prevent orders with market disruption risks (such as sudden price fluctuations) from being submitted to the market. The executing brokers may set price caps on buy orders and price floors on sell orders.
Please note that while such price limits are set to maximise order execution while minimising price risk, there exists a possibility that a trade will be delayed or may not take place.
FAQs
1. Q: Does Tiger provide support for AGM for the HK market?
A: Due to the limitation of support from Tiger Brokers' overseas brokers, Tiger Brokers is currently unable to provide proxy support for AGM for the HK market.
Hong Kong stock options
Option trading is a highly risky trading product. Before you trade, please read the option risk disclosure in detail .
1. Option introduction
Option (Option) is a right to choose, which refers to the right to buy or sell a certain amount of a certain commodity at a certain price at a certain time in the future. It is a financial instrument generated on the basis of futures, giving the buyer (or holder) the right to buy or sell the underlying asset . The holder of an option can choose the right to buy or not to buy, sell or not to sell within the time specified by the option, and to implement the right or waive the right, while the seller of the option only bears the provisions of the option contract Obligations.
2. Option classification
(1) According to the rights of options, there are two types of call options and put options:
i. call option (Call Options), is the right option to buy gold sellers direction option to pay a certain amount of after that has in the life of the option contract, according to a pre-agreed price to buy a certain number of options contracts to the option writer The rights of specific commodities stipulated, but not the obligation to buy. The option seller is obliged to sell the specific commodity specified in the option contract at the price specified in the option contract at the request of the option buyer during the validity period specified in the option contract;
ii. put option (of Put Options), is the right option to buy gold sellers direction option to pay a certain amount of after that has in the life of the option contract, according to a pre-agreed price of the put option seller to a certain number of The rights of specific commodities stipulated, but not the obligation to sell. The option seller is obliged to purchase the specific commodities specified in the option contract at the price specified in the option contract at the request of the option buyer during the validity period specified by the option.
(2) Divided by the delivery time of the options, there are two types of American options and European options:
i. American option means that the right can be exercised at any time during the validity period specified in the option contract;
ii. European-style options means that the rights can be exercised on the expiration date specified in the option contract. The buyer of the option cannot exercise the rights before the expiration date of the contract. After the expiration date, the contract will be automatically invalidated.
(3) According to the classification of the target on the option contract, there are stock options, stock index options, interest rate options, commodity options, and currency conversion options.
3. Important terms for options
(1) Exercise price (Strike Price , also known as the "strike price"), if X stock price to HK $10 , you buy a HK $ 15 call option, HK $15 is the exercise price.
(2) The implementation date (Expiration a Date , also known as the "exercise date"), if you buy a 2020 Nian 9 Yue 29 day expiration option, then this is the day the exercise date.
(3) Open Interest: The number of contracts that have not expired or been executed.
(4) Contract (Contract), the unit of option is contract, usually each contract is the right of 100 shares.
4. Common problem
(1) What is the smallest unit of Hong Kong stock options trading?
The minimum unit of Hong Kong stock options trading is 1 contract. The number of underlying shares corresponding to an option contract = the number of underlying shares per lot * the multiple of underlying stock trading unit. For example, Xiaomi’s“ primary stock trading unit multiple” is 5 , and each underlying stock is The number of lots is 200 , so the number of underlying shares corresponding to an option contract is 1000 .
(2) What are the commission fees for options?
0.2% of transaction amount , minimum 3 HKD per order.
(3) What is the trading time of options?
The trading hours of options are 9:30 to 12:00 and 13:00 to 16:00 Beijing time.
(4) Can options be exercised in advance?
Currently, TIGER TRADE client does not support early exercise.
(5) Can the purchased option be closed at any time before the expiry date?
Options before the expiry date, whether long or short, can be traded at any time at the market price during the trading hours before the expiry date.
(6) How will in-the-money options deal with options without active exercise or liquidation on the expiry date?
Stock options that expire on the same day and reach 1.5% or more of the exercise price will be automatically exercised, but when the investor’s margin does not meet the exercise conditions, the position will be closed at the market price. If the position cannot be closed at the market price due to insufficient liquidity and other reasons, Tiger Brokers reserves the right to void the option. This process will cause the entire value of the option to be abandoned.
(7) Will the automatic invalidation of options, liquidation and system exercise be found in the transaction records?
Yes, you can click on the order details to view related records and instructions.
(8) Do you support short trading of Hong Kong stock options?
Yes .
(9) What should I do if my account is unable to meet the margin requirement on the Option Contract Expiration Date out of options exercise or assignment?
We usually calculate the required fund for exercising in-the-money or near-in-the-money options at any time on the date of expiration before close. In case of insufficient cash in your account, Tiger Brokers may liquidate positions in your account to prevent margin deficiency from option exercise. If you anticipate that you will be unable to meet the margin requirement after the option exercise, you should either close positions or deposit additional funds as expiration nears.
Tiger Brokers reserves the right to:
1. Forced liquidations prior to expiration,
2. Allow the options to lapse,
3. Allow options to be exercised and liquidate other positions.