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Hong Kong’s SFC orders brokers to end ‘imprudent’ margin financing to pre

Review discovered many ‘deficiencies’ in IPO practices among some undisclosed brokerages, the market watchdog said in a circular.



Hong Kong's SFC has ordered brokers to end "imprudent" margin financing practices for IPOs, requiring a 10% upfront deposit from clients who don't fully pre-fund orders. This action follows a review revealing excessive oversubscription rates and significant margin financing for IPOs like Mixue Group and Blok Group, exposing brokers and clients to financial risks.

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