Wealth Portfolio Lending

HSBC HK
Jade
Wealth management
Wealth Portfolio Lending

Greater financial flexibility with a secured loan

HSBC Wealth Portfolio Lending is designed for HSBC Jade customers to enjoy additional liquidity based on their assets with HSBC. You can pledge a wide range of accepted collateral to boost your buying power and fulfill your general liquidity needs, provided you stay within our margin monitoring thresholds.

Ready to apply? How it works

Key benefits

Stay liquid without cashing out

Unlock liquidity with a credit limit of up to HKD39 million for various needs, such as tax payments or financing your business, without giving up your opportunities and returns.

Take advantage of your overall wealth

Make the most of your total assets to exploit short-term investment opportunities, within and outside of HSBC.

Wide range of accepted collateral

This includes time deposits, Deposit Plus, structured investment deposits, Hong Kong listed stocks, unit trusts, Hong Kong exchange traded funds, bonds, and certificates of deposit.

Competitive fees

Competitive borrowing costs as low as our Best Lending Rate minus 2.55%. ¹See our current pricing information here (PDF)

Advance Ratio

Advance Ratio is the percentage of the market value of your asset(s) that you can take out as a loan.

The advance ratio of each asset is assigned based on HSBC's internal assessment of the quality of your assets and your investment portfolio.

Generally, the more diversified your investment portfolio is, the higher the advance ratio for your assets may be, taking it closer to the respective maximum advance ratio listed below.

If your investment portfolio is considered to be concentrated or impacted by other risk factors, based on HSBC's internal assessment, the advance ratio you can get may not be as high as the respective maximum advance ratio below.

Take a look at these examples:
Asset Type	Advance Ratio (up to)
HKD Time Deposits	95%
Foreign Currency Time Deposits	85%
HK Listed Stocks	70%
Unit Trusts / HK Exchange Traded Funds	90%
Bonds	95%
Certificates of Deposit	70%

Take a look at these examples:
Asset Type	HKD Time Deposits
Advance Ratio (up to)	95%

Asset Type	Foreign Currency Time Deposits
Advance Ratio (up to)	85%

Asset Type	HK Listed Stocks
Advance Ratio (up to)	70%

Asset Type	Unit Trusts / HK Exchange Traded Funds
Advance Ratio (up to)	90%

Asset Type	Bonds
Advance Ratio (up to)	95%

Asset Type	Certificates of Deposit
Advance Ratio (up to)	70%

Here's how it works

How much you can borrow

Assuming you currently hold assets worth HKD15 million in market value as collateral with a blended advance ratio of 60%, the total collateral value will be HKD9 million, and you will be able to borrow up to HKD9 million.
Total market value of your asset	Blended advance ratio	Total collateral value
HKD15 million	60%	HKD9 million

Assuming you currently hold assets worth HKD15 million in market value as collateral with a blended advance ratio of 60%, the total collateral value will be HKD9 million, and you will be able to borrow up to HKD9 million.
Total market value of your asset	HKD15 million
Blended advance ratio	60%
Total collateral value	HKD9 million

Total collateral value of your assets = Total market value of your asset * Blended advance ratio

How to determine the net margin ratio (NMR)

We use net margin ratio (NMR)² to determine your margin status. When your NMR falls below 100%, you may get a margin call from us.

For example, you have a total collateral value of HKD9 million and you draw down HKD8 million. Your NMR will be 117%.
Total market value of your assets	Total collateral value of your assets	Total outstanding loan	Net margin ratio
HKD15 million	HKD9 million	HKD8 million	117%

For example, you have a total collateral value of HKD9 million and you draw down HKD8 million. Your NMR will be 117%.
Total market value of your assets	HKD15 million
Total collateral value of your assets	HKD9 million
Total outstanding loan	HKD8 million
Net margin ratio	117%

Net margin ratio = (total market value - total outstanding loan) / (total market value - total collateral value)

You'll need to monitor your account from time to time to ensure you have sufficient margin, and that the NMR is at all times equal to or more than 100% (or any other percentage we have advised you of). If you don’t do this, you may be sent one of the notices below.
NMR	Actions
Under Margin³ >=90% / < 100%	You need to satisfy an under margin by: Making available additional funds to either be applied to reduce the loan outstanding; or Providing additional Eligible Assets⁴ to increase your collateral value; or Providing instructions for a full or partial sale of Secured Assets
Shortfall³ >= 80% /< 90%	You need to satisfy a shortfall by: Making available additional funds to either be applied to reduce the loan outstanding; or Providing additional Eligible Assets⁴ to increase your collateral value; or Providing instructions for a full or partial sale of Secured Assets
Margin Call³ >= 60% / < 80%	You need to satisfy a margin call within five business days by: Making available additional funds to either be applied to reduce the loan outstanding; or Providing additional Eligible Assets⁴ to increase your collateral value; or Providing instructions for a full or partial sale of Secured Assets
Forced Liquidation⁵ < 60%	Forced liquidation of all or part of the investments and/or deposits without prior notice.

You'll need to monitor your account from time to time to ensure you have sufficient margin, and that the NMR is at all times equal to or more than 100% (or any other percentage we have advised you of). If you don’t do this, you may be sent one of the notices below.
NMR	Under Margin³ >=90% / < 100%
Actions	You need to satisfy an under margin by: Making available additional funds to either be applied to reduce the loan outstanding; or Providing additional Eligible Assets⁴ to increase your collateral value; or Providing instructions for a full or partial sale of Secured Assets

NMR	Shortfall³ >= 80% /< 90%
Actions	You need to satisfy a shortfall by: Making available additional funds to either be applied to reduce the loan outstanding; or Providing additional Eligible Assets⁴ to increase your collateral value; or Providing instructions for a full or partial sale of Secured Assets

NMR	Margin Call³ >= 60% / < 80%
Actions	You need to satisfy a margin call within five business days by: Making available additional funds to either be applied to reduce the loan outstanding; or Providing additional Eligible Assets⁴ to increase your collateral value; or Providing instructions for a full or partial sale of Secured Assets

NMR	Forced Liquidation⁵ < 60%
Actions	Forced liquidation of all or part of the investments and/or deposits without prior notice.

Ready to apply for Wealth Portfolio Lending?

Not yet a Jade client?

HSBC Jade is a privileged and personalised service for clients who maintain a Total Relationship Balance of at least HKD7.8 million with us in Hong Kong.

To help us better understand your needs, please contact us to arrange an appointment.

Book an appointment This link will open in a new window Learn more about HSBC Jade

Alternatively, call us at (852) 2233 3377.

Already a Jade client?

Talk to your dedicated Jade Director to find out more, or call us at (852) 2233 3033 (HSBC Jade Dedicated Service Line).

Need further information?

HSBC Total Relationship Balance

Product factsheet (PDF)

Key facts statement (PDF)

Terms and conditions (PDF)

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Dedicated bonds services

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Remarks

To borrow or not to borrow? Borrow only if you can repay!

The interest rate offered depends on the Best Lending Rate (BLR), which is the prevailing rate quoted by HSBC, and may change from time to time.
NMR changes on a daily basis depending on your asset market value, blended advance ratio and your loan outstanding. For more details, please refer to the product factsheet.
The under margin levels, shortfall levels and margin call levels are subject to change by the Bank without prior notice and the Bank has no obligation to notify the customer of the aforesaid event, therefore it is the customer's duty to monitor the same.
The list of the eligible investments and eligible deposits designated by the Bank and their respective advance ratio may be amended by the Bank from time to time without prior notice.
In the event that the market deteriorates rapidly beyond the margin call level and reaches the forced liquidation level, the Bank reserves the rights to close out all or part of the outstanding positions without notice and without any margin calls. The forced liquidation levels are also subject to change by the Bank without prior notice.

General risk of securities trading: The prices of securities vary, sometimes dramatically. The price of a security may move up or down, and may become valueless. It is as likely that you will incur losses rather than making profit when buying or selling securities.
Risks associated with margin requirements: Wealth Portfolio Lending is a secured loan and your Effective Limit as well as the required margin may vary from time to time based on the advance ratio applicable to each type of Eligible Asset and the fluctuation of the market value of all Eligible Assets as collateral securing your loan. Any cash and securities deposited with us will be charged, pledged and/or assigned to us. Any decrease in the market value of your Eligible Assets pledged as collateral can have an impact on the Collateral Value. If your Collateral Value decreases to a certain level (e.g. your Net Margin Ratio drops below a certain level) or, if for any other reason (e.g. your outstanding loan exceeds the lesser of the Credit Limit or Effective Limit) the Eligible Assets used as collateral are deemed by the Bank to be insufficient to secure your credit exposure, you may rapidly be in a situation of margin shortfall. In this context, we may request you to provide additional cash or eligible assets on short notice or sell securities to repay all or part of the loan ("Margin Call"). The amount of additional cash or collateral that we may request you to provide us may be substantial. While any loan provided by us to you remains outstanding, you may be restricted from selling or otherwise dealing with any cash or investments deposited with us. If you do not act promptly upon receiving of a Margin Call notice and do not take the required actions (such as providing additional cash or Eligible Assets, selling securities and/or repaying the loan) within the prescribed time, we may have various rights, including the right to sell part or all of your assets ("forced liquidation"), as well as to exercise set-off in relation to any cash that you have deposited with us, even in adverse market conditions. You will bear all losses and may remain liable to repay us any resulting deficit in your account (including interests) and any other amounts due from you to us. Using your loan for reinvestment purpose could expose you to significant losses. In the context of adverse market movements, you may incur losses in excess of your own initial funds and your investments, and you may be required to repay the loan in full. Finally, we may also exercise the right to sell part or all of any of your Eligible Assets used as collateral and/or dispose of part or all of the cash or other assets deposited with us and take any other legal action, without notice or demand. For example, we may have such right when due to adverse market conditions the market value of your assets drops significantly, your assets cease to be eligible for Wealth Portfolio Lending, or we need to reduce your potential exposure to unacceptable risks or heavy losses.
Risk of using leverage: The high degree of leverage attached to the use of Wealth Portfolio Lending for reinvestment can lead to large losses (e.g. in the event we have to force sell your investment) as well as gains. The higher your leverage is, the bigger your losses can be in adverse market conditions.
Interest rate risk: Interest rate fluctuations may have an adverse impact on the value of your investments. In addition, where the interest rates by reference to which interests on your loan are calculated fluctuate, this may adversely affect the return on your investments. In particular, the cost of borrowing may equal to or exceed the actual return on your investments, resulting in loss in your principal investment.
Liquidity risk: You will need to retain sufficient liquid net worth to service your loan. Significant market events may place substantial stress on your liquidity position. Under certain market conditions you may have difficulties to sell your investments. In the event we have to force sell your assets, the price at which such sale is concluded may also be affected where there is no or little liquidity in the market for your investments and/or collateral.
Currency risk: If your loan and collateral are denominated in different currencies, there may be potential amplified loss liability if the borrowing currency appreciates or the collateral currency depreciates.