Lombard loans in Hong Kong.
Private credit against Hong Kong-listed shares — pledged, not sold, with ownership retained.
A Lombard loan against Hong Kong-listed shares is credit secured by a pledge of equity listed on the HKEX. The holder pledges the shares as collateral, draws cash against a fraction of their market value, keeps beneficial ownership and dividends subject to structuring, and recovers the position in full on repayment.
- Lombard loans are arranged against shares listed on the HKEX (HKEX).
- The pledge is not a sale: ownership, dividends, and the upside stay with the holder.
- Loan-to-value is calibrated to the specific position, funded in HKD or cross-currency.
- Structured under the SFC regime, with disclosure from 5%.
Eligible collateral and venues
Lombard Financing arranges facilities against equity listed on the principal Hong Kong venue: Hong Kong Exchanges and Clearing (HKEX). Eligibility at the position level turns on the liquidity and free float of the specific line, its volatility, and the size of the holding relative to its typical traded volume — the same variables that drive the loan-to-value.
Regulator and disclosure
Shares listed in Hong Kong are regulated by Securities and Futures Commission (SFC). Substantial-shareholding disclosure is triggered from 5%, and a pledge over a large line is structured with that reporting regime in view so that the transaction remains discreet and compliant. Where a holding sits near a control or takeover threshold, the structure is arranged to avoid disturbing the position.
Funding, custody, and structuring
Facilities are typically arranged for a tenor of twelve to thirty-six months, funded in HKD or in another currency on a cross-currency basis. Throughout the facility the pledged shares are held by a qualified custodian under bankruptcy-remote arrangements, so the security is clean and the holder’s ownership is preserved. Non-recourse, limited-recourse, and full-recourse structures are available, and the choice interacts with the loan-to-value and the pricing.
| Listing venue(s) | Hong Kong Exchanges and Clearing (HKEX) |
|---|---|
| Regulator | Securities and Futures Commission (SFC) |
| Currency | HKD (cross-currency available) |
| Disclosure threshold | From 5% substantial-holding disclosure |
| Principal indices | Hang Seng Index, Hang Seng China Enterprises Index (H-shares) |
| Indicative tenor | 12–36 months, renewable by agreement |
| Recourse | Non-recourse / limited-recourse / full-recourse |
Considering a Lombard loan against a Hong Kong-listed position?
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Disclosure and regulation
Hong Kong runs its disclosure of interests regime under Part XV of the Securities and Futures Ordinance, policed by the SFC: a substantial holder appears on the register from 5% and must refile on every 1% band crossed thereafter. Pledging a Main Board position does not of itself retire that interest — the client stays the disclosable holder while the shares are charged — and a lender able to take title on enforcement may acquire its own notifiable interest. We arrange Lombard credit so the client’s filings remain accurate and any change-of-control question is anticipated well before it can arise.
An illustrative example
To illustrate only: a family office holding HKD 300 million of a Hang Seng constituent might draw a Lombard loan at a measured 50% loan-to-value — the mid-point of our indicative 20–65% range — freeing on the order of HKD 150 million in cash while the shares stay in the client’s name and keep receiving dividends. The advance can be drawn in HKD or swept into USD or CHF on a cross-currency basis. These figures are purely hypothetical and would be calibrated to the individual name’s liquidity and concentration.
Illustrative only — not an offer, a quotation, or a commitment to lend.