Banks, brokers to offer record US$38.7 billion of margin financing for Hong Kong retail investors to buy into Ant’s giant IPO
- HSBC plans to lend HK$100 billion, while brokerage Bright Smart will lend HK$50 billion, making them the top two lenders for investors to subscribe to Ant Group’s IPO this week
- Banks and brokers are waiving fees, offering low interest rates and accept clients with high leverage as they compete for customers who want to invest in the hottest IPO in decades
HSBC, Hong Kong’s biggest bank, is ready with an IPO lending capacity of over HK$100 billion to support retail investors subscribing to the mammoth flotation, according to a statement from the lender issued on Friday.
At the same time, Bright Smart Securities, the biggest local broker to offer IPO margin financing, is prepared to lend HK$50 billion to customers wanting a slice of the action.
Ant priced its Hong Kong stock at HK$80 (US$10.32) apiece, and its 1.67 billion shares destined for the Shanghai exchange at 68.80 yuan (US$10.27) each, putting on course to raise about US$34.5 billion from its dual listing.
Other retail banks such as Bank of China (Hong Kong), Hang Seng Bank as well as many of the 600 local stockbrokers have prepared over HK$150 billion for their customers to borrow for the red hot IPO, brokers estimate.