Educational guide · HKEX
Hong Kong Block Trades: A Guide for HKEX Shareholders
Short answer
A block trade is a large, privately negotiated sale of listed shares, usually arranged by a broker at a discount to the market price to avoid moving the market.
Frequently asked questions
Block trade or share-backed financing?
A block trade exits the position, usually at a discount. Share-backed financing raises cash while keeping the shares and their upside, but adds financing cost and price risk.
What decides the terms for HKEX-listed shares?
Mainly the stock's liquidity (average daily traded value), its volatility, the size of the holding relative to free float, any lock-up or trading restriction, and the tenor requested. Concentrated or less liquid holdings usually receive lower advance rates.
Related Hong Kong guides
- Hong Kong stock loans
- Hong Kong share-backed financing
- Hong Kong margin loans
- Hong Kong equity-backed financing
See also
This guide is general information, not financial, legal or tax advice. It does not describe Squadron Capital's specific terms.