What are securities borrowing collateral rules?

When clients engage in short selling, i.e. borrowing securities from a broker and sell them, the system will require a collateral amount to ensure that customers have the ability to return the securities.

● For short selling Hong Kong Stocks, a cash amount of 105% of the market value of the borrowed shares will be debited from your account as the short selling collateral. 

● For short selling US Stocks, the short selling collateral will be a cash amount equal to the market value of the borrowed shares. 

The short selling collateral is not included in the cash buying power. If there is a deficit after deducting the value of the borrowed shares from cash, the resulting deficit will be considered as margin financing and interest will accrue accordingly.