I. Introduction: Why Are More Investors Crazy About Hong Kong IPO Subscription in 2025?

In 2025, with China's economic recovery and deepened capital market reforms, the Hong Kong IPO market has ushered in a new wave of activity. From biotech to artificial intelligence, from consumer brands to new energy enterprises, more and more high-quality companies are choosing to list in Hong Kong. According to HKEX data, the number of new listings in the first half of the year increased by over 30% year-on-year, and the total fundraising amount returned to the forefront globally.

For ordinary investors, Hong Kong IPO subscription (i.e., "new share subscription") has become an important way to share the growth dividends of enterprises. Compared with A-shares, Hong Kong IPO subscription has lower thresholds, a fairer allotment mechanism, and offers opportunities to participate in early investments of star enterprises such as Tencent, Alibaba, Meituan, and JD.com.

Among numerous internet brokerage firms, Longbridge Securities has become the preferred platform for more investors due to its user-friendly App experience, support for up to 33x margin financing, transparent fees, and pre-subscription reservation service.

However, many new investors often ask:

• "How to subscribe for IPOs with Longbridge Securities?"
• "How is the interest on margin IPO subscription calculated?"
• "Will my shares be forced liquidation after allotment?"
• "What is grey market trading? How to operate it?"

Don't worry! This article will provide you with a comprehensive analysis of the entire process of subscribing for new Hong Kong stocks on Longbridge Securities, covering everything from the selection of subscription methods, cost details, winning rules to dark pool trading. It will clarify all aspects, helping you easily participate in Hong Kong IPOs and seize investment opportunities.

II. Revealing Hong Kong IPO Subscription Mechanism: 3 Core Knowledge You Must Know

Before starting IPO subscription, first understand the basic rules of the Hong Kong market to avoid pitfalls.

1. Hong Kong Market Structure: Tech Stocks Rising, Chinese Concept Stocks Gathered

As an international financial center, Hong Kong is not only a gathering place for local real estate and financial enterprises but also a bridge for mainland enterprises to go global. In recent years, with tech giants such as Tencent, Xiaomi, Kuaishou, JD Health, and Alibaba listing in Hong Kong, the proportion of tech and internet companies has been rising. Hong Kong is gradually becoming an important listing venue for global tech stocks after NASDAQ.

2. Hong Kong IPO Subscription Mechanism: Lottery System, Not "More Subscription = More Allotment"

Hong Kong new shares adopt the model of public offering + international placing, and retail investors participate in the "public offering" part.

Key points:

• Allotment depends on lottery, not proportional to the subscription amount.
• Even if you subscribe for 100 lots, you may only get 1 lot or even none.
• Popular stocks have low allotment rates, while less popular stocks may be allotted to everyone.

✅ Friendly Reminder: Don't blindly pursue "maximum subscription"; rational fund allocation is more important.

3. Clarifying Common Misconceptions

III. Longbridge Securities IPO Subscription Full Process (Illustrated)

Below, we take actual operations as an example to guide you through Hong Kong IPO subscription step by step.

✅ Step 1: Download Longbridge App and Enter "New Shares" Page

• Download method: Search for "Longbridge Securities" on App Store / Google Play, or click Longbridge Securities APP Download Guide;
• After logging in, click the bottom menu 「Market」→ 「New Shares」 or 「IPO Calendar」 at the top of the page

📌 Tip: It is recommended to enable "IPO Reminder" to get prospectus information in the first place.

✅ Step 2: Select Target New Share and Click "Subscribe Now"

In the list of "Subscribing" new shares, select the stock you want to participate in, and check basic information such as offering price, subscription time, and listing date.

✅ Step 3: Choose Subscription Method (Key Decision)

Longbridge Securities provides two IPO subscription methods:

✅ Selection Suggestions:

• Sufficient funds → Choose cash subscription for lower cost
• Want to leverage funds and participate in multiple new shares → Choose bank margin subscription

✅ Step 4: Enter Subscription Quantity and Submit Order

• Enter the number of shares you want to subscribe (e.g., 1 lot, 10 lots, etc.)
• The system will automatically calculate the required funds
• Click 「Apply for Subscription」→ Confirm information → Submit

⚠️ Note: If the account cash is insufficient, position pledge or currency borrowing will be automatically used, incurring interest!

✅ Step 5: Check Subscription Records and Wait for Allotment

• Path: 「Market」→「New Shares」→「Subscription Records」
• You can check the order status: Submitted, Processing, Allotted/Not Allotted

IV. Fee Details: How Much Does It Cost to Subscribe for IPOs with Longbridge Securities?

This is the most concerned question for investors. Let's calculate the costs.

1. Subscription Handling Fee (Non-refundable!)

• Cash subscription: HK$49 per transaction
• Bank margin subscription: HK$99 per transaction

✅ This fee will be deducted on the subscription closing date regardless of allotment.

2. Bank Margin Interest (Key!)

• Interest formula: Daily interest = Margin amount × (Annual interest rate / 365)
• Annual interest rate: As low as 5.75% (subject to the page display)
• Interest period: From the subscription closing date to the day before allotment result announcement

📌 Example: Margin of HK$100,000, annual interest rate 5.75%, interest calculation for 5 days

Daily interest = 100,000 × (5.75% / 365) ≈ HK$15.75

Total interest = 15.75 × 5 = HK$78.75

⚠️ Interest is charged even if not allotted!

3. Post-allotment Fee: 1.0085%

If allotted, additional fees are required:

• Brokerage commission, SFC fee, exchange fee, FRC transaction levy
• Total 1.0085% of the allotted amount

📌 Example: Allotted HK$100,000 new shares → Additional expense is approximately HK$1,008.5

4. Fund Freezing and Refund Mechanism

V. Longbridge Allotment Result Inquiry & Grey Market Trading Guide

🔔 When Will Allotment Results Be Announced?

• Time: Before 16:00 on the trading day before listing
• Notification method: App message push + subscription record update
• Inquiry path: 「New Shares」→「Subscription Records」→ View order details

⚠️ Important Reminder After Allotment: Avoid Forced Liquidation Due to Margin Call!

• If the account margin is insufficient, a Margin Call will be triggered
• Funds must be replenished before 14:00 on the listing trading day
• Otherwise, the brokerage has the right to liquidate without notification!

✅ Suggestion: Replenish funds or adjust positions promptly after allotment to ensure account security.

🌙 What is Grey Market Trading? How to Operate on Longbridge?

Grey market trading refers to over-the-counter trading of new shares one day before the official listing, allowing you to buy and sell in advance to lock in profits.

Key Points of Longbridge Grey Market Trading:

• Trading hours:
  • Normal day: 16:15 – 18:30
  • Half-day trading: 14:15 – 16:30
• Supported order type: Limit order
• Minimum price fluctuation unit (see table below):

📌 Why is the grey market price different from other brokerages?

Because the grey market is a broker's internal matching system, not a unified quotation from the exchange, price differences are normal.

Settlement Mechanism:

• Trading day = Listing day (T day)
• Settlement day = T+2 (two trading days later)

📌 Example: Grey market trading on Monday, listing on Tuesday → Settlement day is Thursday

VI. Frequently Asked Questions (FAQ)

Q1: Can I choose both cash subscription and margin subscription at the same time?

A: No, you can only choose one.

Q2: Can funds deposited on the same day be used for IPO subscription?

A: Yes, but funds can only be used after being credited to the account by the bank (T+1 for some banks).

Q3: Can funds from stock sales be used for IPO subscription?

A: You can place an order, but settlement is on T+2. If not completed by deduction time, currency borrowing interest will be incurred.

Q4: What is pre-subscription reservation? Is it useful?

A: Submit a "reservation order" before the official IPO prospectus release to lock in margin quota in advance. The system will automatically generate a subscription order when the prospectus starts, suitable for popular stocks.

⚠️ Note: Reservation may fail if cash is insufficient or quota is limited.

Q5: If not allotted, will the handling fee be refunded?

A: No. Handling fees are charged regardless of allotment and are non-refundable.

Q6: What if the new share listing is delayed or cancelled?

A:

• Delayed: Order remains valid, interest and fees are charged as usual
• Cancelled: Order is cancelled, but deducted fees are non-refundable

Q7: Must I use the maximum leverage for margin IPO subscription?

A: No. You can choose the margin multiple based on your risk tolerance.

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Conclusion: Rational Subscription, Long-term Success

Although Hong Kong IPO subscription offers opportunities, it is not "a sure profit". In recent years, some new shares have broken below the offering price on the first day, so investors need to be vigilant about risks.

Our suggestions:

• Diversify participation to avoid overconcentration in a single new share
• Focus on company fundamentals and don't blindly chase "star stocks"
• Use margin rationally and control leverage risks
• Pay attention to grey market performance after allotment and make flexible decisions

With advantages of user-friendly operation, flexible margin, and transparent fees, Longbridge Securities has become the preferred platform for many investors to participate in Hong Kong IPOs. Whether you are a new investor or an advanced player, you can find a suitable subscription strategy here.

Longbridge Securities Exclusive Account Opening Promotion in August 2025: Up to HK$10,000+ Benefits

1. Deposit Requirement Rewards

2. Transfer-in and Additional Benefits

1. First net transfer of assets worth HK$10,000 or more, enjoy lifetime zero commission for Hong Kong and US stocks;
2. Transfer stocks worth US$10,000 to Longbridge account, get an additional HK$500 stock cash card;
3. New users exclusively enjoy 4% money market fund subscription qualification and zero handling fee for cash IPO subscription.

3. How to Participate in the Promotion

• Longbridge Hong Kong (Mainland users): Register via Exclusive Account Opening Link and enter invitation code "5B2QX5" to lock the promotion eligibility.
• Longbridge Hong Kong (Non-mainland users): Register via Exclusive Account Opening Link and enter invitation code "5B2QX5" to lock the promotion eligibility.
• Longbridge Singapore: Register via Exclusive Account Opening Link and enter invitation code "5B2QX5" to lock the promotion eligibility.

Rewards will be issued in the form of coupons to the App "My Coupons" account within 3 working days after meeting the requirements.

4. 1-on-1 Account Opening Guidance Service

For document pre-review, policy consultation, or process assistance, you can contact Hawkinsight Assistant for exclusive guidance to ensure efficient account opening and benefit claiming. Longbridge Securities will continue to be compliance-based and technology-driven to provide smarter cross-border investment experiences for global investors.

📢 Take Action Now to Start Your Hong Kong IPO Subscription Journey!

👉 Download Longbridge Securities App to experience a smooth IPO subscription process

Data in this article is updated to August 14, 2025, and is subject to the display on Longbridge Securities App. Investment involves risks; IPO subscription requires caution.