Financing interest is calculated based on the actual amount of the account after settlement, interest = settled amount * daily interest rate. The minimum is CNH 0.01.
If a customer uses margin to purchase stocks, it generates cash debts. Since the A-share account is settled on T+1, the actual time when the account has debt is the first trading day (T+1 day) after the transaction is completed.
For example, a customer's account settled cash is 0, suppose he borrows 50,000 to buy APPL. On T day, the account settled cash is 0, after the settlement on T+1 day, the account settled cash will be -50,000, there will be interest generated from T+1.
There are two ways to repay the debt
1. Selling stocks: After the stocks are sold, the settlement needs to be completed on T+1 day. Therefore, on the T day after the stocks are sold, the account still has arrears and generates interest.
2. Deposit Cash: Customer's deposits will give priority to repay the debt. There will be no interest generated after depositing enough cash.
CNH annualized financing interest rate: 8.8%
Note: The financing interest rate may be adjusted periodically to adapt to changes in currency exchange rates.