HKSI LE Paper 15 case studies

HKSI LE Paper 15 · Put your knowledge to work in context.

HKSI Licensing Examination Paper 15 is one of the papers in the licensing examination suite administered by the Hong Kong Securities and Investment Institute (HKSI Institute), the industry body that sets and delivers these papers locally. Paper 15 is aimed at candidates seeking registration or licensing to carry on regulated activities connected with asset management and advisory work, and it is typically taken alongside other papers that together satisfy the competence requirements of the Securities and Futures Commission (SFC). The HKSI LE Paper 15 case studies are 5 cases and about 4,428 words.

Closing Auction, Short Selling and a Volatility Control Trigger

At 15:40, Windward Securities (Type 1) is working a sell order for the Hin Yan Asia Equity Fund: 18 million shares of a Hang Seng Index constituent, about nine times the stock's 20-day average daily volume. The fund manager wants 40% of the quantity placed in the Closing Auction Session as one closing limit order at 16:00 and asks whether the order can be pulled at 16:05 if the indicative auction price looks poor.

924 words, about 5 min 2

Sponsor Engagement, a Connected Warehouse Purchase and a Creeping Stake

Golden Harbour Group, a mainland logistics operator, submits a Main Board listing application. Its sponsor was formally engaged only six weeks before the A1 filing, and the sponsor's fee is payable partly on successful listing.

876 words, about 4 min 3

Derivatives Exposure, a Side Letter and Smoothing the NAV

Lantau Capital (Type 9 and Type 4) manages the SFC-authorised Lantau Asian Income Fund, NAV HK 2.4 billion. To obtain exposure to mainland property bonds without buying them outright, the fund has entered total return swaps with a single dealer; the swaps produce HK 1.7 billion of exposure and the fund's net derivative exposure is 68% of NAV.

878 words, about 4 min 4

A Retired Client, a PI Confirmation and a Four-Times Gearing Accumulator

Mrs Cheung, 68 and retired, holds HK 6.4 million in bank deposits, MPF accrued benefits and blue-chip shares, and owns a mortgage-free flat worth HK 5.8 million. Her relationship manager at a bank classifies her as a professional investor because her total net worth exceeds HK 8 million and obtains a signed 'PI confirmation' without explaining the consequences.

848 words, about 4 min 5

Layered Offshore Ownership, a PEP Director and a Request to Split a Transfer

A Type 1 and Type 4 licensed corporation onboards Bright Peak Holdings, a BVI company. Its two shareholders are companies incorporated in Panama and the Seychelles; the sole director, Mr A, is a former deputy minister of a Southeast Asian country.

902 words, about 5 min