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FAQ about IPO Subscription

1. FAQ about Standard Subscriptions 

1.1 Q: Which part of my funds is used for standard subscriptions?

A: You may use the available funds on your account to subscribe for IPOs.

1.2 Q: Why is the amount of funds available for IPO subscriptions less than the maximum buying power of my account?

A: The withdrawable amount shown on your account is ''maximum balance'' whereas the amount available for IPO subscriptions is  ''withdrawable cash'', which may be smaller than ''maximum balance'' in certain scenarios. Please refer to the available cash amount prompted on the IPO subscription page. As long as you subscribe within this limit, no interest will incur.

1.3 Q: When will FUTU deduct the money for standard subscriptions?

A: After receiving your subscription, the system will freeze the required money at once and deduct it on the FUTU subscription deadline.

1.4 Q: Can I cancel and/or edit standard subscriptions?

A: You may cancel and/or edit an IPO subscription before the deduction of the required money.

1.5 Q: How do I pay back funds borrowed via FUTU financing services after making new deposits?

A: New deposits will automatically cover the borrowed amount.


2. FAQ about Bank-Financed IPO Subscriptions

2.1 Q: Do I have to have cash in my account while applying via bank-financed subscriptions?

A: No. You may use your equity positions as collateral for margin financing. If you have no assets on your FUTU HK margin account, but have sufficient assets on  your US/Chinese margin account. accounts, you may use these assets as deposits to generate more buying power for your IPO subscriptions or leverage off of them via bank financing.

Currently, the buying power of the FUTU Securities Account cannot be unified with the buying power of other accounts. 

2.2 Q: When will FUTU deduct the required fundings for bank-financed subscriptions?

A: After receiving your subscription, the system will freeze the required money at once and deduct it on the FUTU subscription deadline.

2.3 Q: How do I calculate interest? Will the timing of submission of my application affect the final interest charges?

A: All interest will accumulate starting from the subscription deadline. The timing of your application will not make any difference. Please refer to the app for the specific amount of interest.

2.4 Q: How do I pay back funds borrowed via bank financing after making new deposits?

A: You may not pay back bank-financed funds early. interest will be deducted from your account upon the release of allotment results.

2.5 Q: How do I calculate changes in my funds after allotment results?

A: If you receive no allotment, the system will return the deducted funds back into your account after allotment results(excluding processing fees). If you are allotted shares, the system will add these shares into your position and deduct the money.

2.6 Q: What would happen if my account reaches Margin Call after allotment results?

A: If your margin ratio gets too low after the announcement of allotment results, your account will reach Margin Call. Please deposit sufficient margin into your account before the offering day. Otherwise, FUTU retains the right of forced liquidation.

2.7 Q: When will the interest be deducted?

A: Interest charges incurred by bank financing will be deducted on the announcement day.

2.8 Q: Do I have to maximize my leverage in financing for IPO subscriptions?

A: No. You may adjust your margin ratio according to your personal preferences.

2.9 Q: Can I cancel or edit to my subscriptions?

A: You may cancel or make changes to your applications before the deduction time. Please refer to the notifications for the exact deduction time. 

Note: Please pay attention to the subscription deadline to prevent yourself from not having enough time to reapply after cancelling your subscription.


3. Other Questions

3.1 Can I participate in both standard subscriptions and bank-financed subscriptions at the same time?

A: No. You may only choose one.

3.2 Q: How much time do I need to wait until a new deposit becomes eligible for IPO subscriptions?

A: You may use new deposits to subscribe for IPOs immediately after paying off your existing arrears. (if you have any).

3.3 Q: How long does it take for funds acquired from selling some of my shares to become eligible for IPO subscriptions?

A: If you liquidate some of your stocks, your funds will be settled on T+2. You can then use the funds to subscribe for IPOs.

3.4 Q: What are the rules for IPO subscriptions? Do I get more allotment if I apply for more?

A: The allotment rules are set by the HKEX. Typically, the more shares you subscribe for, the more likely you will get allotted.