Hong Kong media: The Hong Kong Securities and Futures Commission is considering restricting the financing ratio for subscription IPO new shares.

The Hong Kong Securities and Futures Commission is consulting the industry on opinions regarding subscription for IPO financing, including the restoration of the previous practice of generally charging a 10% deposit. According to the proposed rules, the financing ratio for subscribing to new shares will not exceed 90%. Previously, some brokers offered clients up to 200 times new share financing, raising concerns from regulators about potential risks. According to the proposed rules, if clients provide stocks as collateral, the deposit can be correspondingly reduced. Relevant guidelines are expected to be issued soon.

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