Ten times leverage to hit the NewPort stock explosion! Some shareholders have lost millions of dollars by liquidating their positions, and proposed that Futu Securities "pay for the loss", who is at fault for the loss?

Financial Associated Press (Shenzhen reporter, Cheng Mengqi) news, half of the money made and half of the loss of Hong Kong stocks hit the new market recently broke out eye-catching news. Some netizens said that relatives used 10 times leverage to subscribe for new shares of Jinli Permanent Magnet, and after the stock price fell continuously, it was forcibly liquidated by Futu Securities, and the loss was heavy.

Looking at the Hong Kong IPO market, it ranked fourth in the world last year with a total fundraising of HK$326.4 billion, but this achievement is not ideal for the Hong Kong Stock Exchange, which has won the championship seven times in the past 11 years. In particular, the breakout throughout the year has laid a deep label for Hong Kong stocks.

Shareholders participated in ten times leverage to hit new blowouts, hoping that Futu would share the losses

Recently, Futu users posted an article saying that their relatives had ten times the leverage to hit the new Jinli permanent magnet, won 1 million shares, and were forcibly liquidated 800,000 shares, with a loss of 6-7 million Hong Kong dollars, hoping that Futu could bear part of the losses of relatives.

This post was instantly fermented on the Internet, causing many netizens to forward comments. On the morning of the 19th, the page of the user "Dr. Xia" could not find any trace of the explosion sticker.

However, according to the previous page has been screenshotted, the Futu user "Dr. Xia" said, "Because of The good service of Futu, it has been actively helping Futu's customers, and some time ago recommended Futu to relatives to open an account to open a new stock, and entered about 3.5 million Hong Kong dollars." As a result, the new share of Jinli permanent magnet was 100% won two days ago. Because the relatives used ten times the leverage. As a result, 1 million shares were suddenly hit. Yesterday's closing position was blown up, and the company forcibly closed 800,000 shares. It is estimated that the loss is more than 6-7 million. ”

"Dr. Xia" said that he felt guilty because of this matter, "Recommending account opening is to take advantage of the beauty of people, I did not expect that the company opened such a large risk exposure to an old Man Hong Kong stock novice, and there was no risk warning for him before this." "Dr. Xia" believes that Futu has negligence in the education and risk tips for new investors, and hopes that Futu can bear part of the losses of investors.

As of press time, Futu has not responded to this matter.

How do brokers and shareholders deal with new risks?

Generally speaking, shareholders should first do risk assessment when opening relevant services, and only when the risk tolerance matches the corresponding business can they open an account or open related business. In the era of networking, whether it is traditional securities companies or Internet brokers, more and more customers handle business online instead of over-the-counter.

Online risk assessment is done by the customer alone on the mobile phone or web terminal, "will not answer the question on Baidu, but certainly to maintain the correct rate." A shareholder who has just completed the opening of online business said. In the face of such a situation, some practitioners said that the Internet account opening of securities companies should keep pace with the times, on the one hand, to open an account conveniently to meet the needs of Z generation customers; on the other hand, it is also necessary to adhere to compliance requirements, strengthen risk control management, especially in risk tips, customer appropriateness to do more efforts to find ways. The ten-fold leverage blowout situation expressed by Futu netizens is not without precedent, but after completing the risk assessment and pressing the new confirmation button, it is not reasonable to ask the securities company to compensate for losses.

For investors, although it is more and more convenient to open accounts and speculate in stocks, it is also more important to pay more attention to the matching of their own risk tolerance and investment; for institutions, doing a good job in the appropriate management of investors is also a necessary process for the business.

As the largest retail broker in Hong Kong, one in three Hong Kongers uses Futu Securities. It is precisely by relying on the high-quality customer experience and convenient network process that Futu can beat the traditional Hong Kong brokers who need to call and confirm repeatedly.

The advantage is a "double-edged sword", which represents the heavy love and trust of customers, and Futu should cherish it, strictly abide by the account opening process, and increase the risk assessment management of account opening.

Playing a new blowout is not an isolated case

Although the performance of the Hong Kong new stock market in 2021 is average, in fact, the first day of the rise and fall accounts for half, that is to say, the probability of making new money and losing money is similar. It is in this way that there is a half chance to make money in the new market, the shareholders have shown their magic and encountered blowouts with different postures on different new stocks.

Nai Xue's tea, which was listed on June 30, 2021, was hotly subscribed during the prospectus stage, and it was oversubscribed 432 times, who knew that the offer price became a "no song", and the two days of listing fell by about 20% compared with the prospectus price. As a result, investors with 10 times leverage subscriptions suffered a blowout and lamented that "Nesher's tea has become a tea with blood"

There are also people who have miraculously escaped from the fate of Hong Kong new stock explosions.

CCTV's "Investors Say" TV program broadcast in 2017, titled "Hong Kong stocks hit new profits, insurance due to a loss of funds", telling that in the 2007 global bull market, a shareholder used the accounts of 32 relatives and friends, relying on the funds raised from securities companies ten times the leverage, and quickly doubled the income in Hong Kong stocks.

Until the 2008 new stock Sunshine Energy opened for subscription, the global financial crisis escalated during the subscription period, the Hang Seng Index fell sharply by more than 4,000 points, and the investor who had pressed the new confirmation button had no way back. Just when he was ready to accept the fate of the new stock break or even the blow-up, due to the fact that the prospectus price did not meet expectations and the frequent breaks of new shares, Sunshine Energy decided to suspend the issuance, and the subscription funds were returned to the subscriber in full.

The shareholders who escaped smoothly eventually lost more than 10,000 yuan in financing interest, but fortunately saved the principal. After such a thrilling new hit, the investor said that he has two new understandings of leveraged trading, one is not to stand on the opposite side of time, and the other is not to gamble on a single transaction.