Securities brokers in Hong Kong are readying billions of margin-lending dollars to tap an expected surge in retail demand for Ant Group's likely US$35 billion dual-listing in Hong Kong and Shanghai in the next few weeks, industry officials said. Margin lending, or the amount brokers can lend to individual investors to purchase shares, has been a big business in Hong Kong in recent years with a large number of equity floats luring retail buyers. Another Hong Kong brokerage UOB Kay Hian has earmarked HK$20 billion for Ant IPO margin financing, a spokeswoman said. The strong demand could raise the short-term Hong Kong Interbank Offered Rate (HIBOR). The two-week Hong Kong Interbank Offered Rate climbed for a fourth straight session on Thursday to its highest in more than seven weeks.

Source: The Standard October 23, 2020 06:33 UTC