Popular inquiries about subscribing to new Hong Kong stocks

Does Webull support IPO subscriptions for Hong Kong stocks?

Webull offers online cash and financing subscription functions.

Can cash accounts participate in financing IPO subscriptions?

Yes.

Does it support margin financing for a single lot? How many times can financing be leveraged? How much capital do I need to prepare?

Some targets support margin financing for a single lot, to determine if a new stock supports it: check its financing limit, if the minimum financing limit equals the entry fee, then that target supports single-lot margin financing.

The maximum financing multiple varies for different targets. If its financing ratio is shown as 90%, then the highest financing multiple is 10 times; if its financing ratio is 95%, then it supports up to 20 times financing.

If the target does not support single-lot margin financing, you need to prepare at least enough funds for one lot. If the target supports single-lot margin financing, then the funds you need to prepare are: entry fee * (1 - financing ratio). For example: if the entry fee for the target is HKD 8,000 and the financing ratio is 90%, then you need to prepare 8,000 * (1 - 90%) = HKD 800.

IPO Subscription Costs

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If you cancel a financed IPO application before the subscription deadline, will the interest and application fee be deducted?

No relevant fees will be deducted. Interest accrues from the start of the subscription offer deadline until the day before the refund date (inclusive). After canceling the financed subscription, the frozen funds will be immediately released to your account balance.

Subscription Timing

Typically, subscriptions for new shares can begin on the day the company officially releases its prospectus. The subscription period usually lasts from 3 days to a week, during which time subscriptions can be made. Financing subscriptions generally close 1-2 days earlier than cash subscriptions.

Release Timing for Financing Quotas

Generally, financing quotas start to be released on the morning of the offering day at 11 a.m. If the quota for the day is exhausted, there may be additional financing quotas released subsequently. For specific release times, please pay attention to the information published by Webull at that time.

Subscription Results

After subscribing for Hong Kong IPO shares, the allocation results are usually announced within a week (the day before the new stock is listed). Allocation results are announced on the day of the announcement between 10 a.m. to 3 p.m. Hong Kong time, at which point you can log in to the Webull APP to check the allocation results. If you do not receive an allocation or there is a refund of funds, the funds will be returned to your account between 2 p.m. to 3 p.m.

Dark Pool Trading

Webull currently supports dark pool trading.

Class A and Class B Subscriptions

Generally speaking, the boundary for subscriptions in a public offering is set at a subscription amount of 5 million Hong Kong dollars. Class A refers to a subscription amount (including financed amounts) that is less than or equal to 5 million, while Class B is for a subscription amount (including financed amounts) greater than 5 million. For investors subscribing to Class B, there's a minimum guarantee of being allocated at least one lot.

*Please note: The following situations may lead to a public offering subscription and allocation results not being divided into Class A and Class B:

1. When a company's market value at issuance is below 400 million Hong Kong dollars;

2. When a particular new stock raises an extremely small amount of funds.