HKSI LE Paper 7 case studies
HKSI LE Paper 7 · Put your knowledge to work in context.
HKSI Licensing Examination Paper 7 covers financial markets knowledge for individuals working in, or preparing to work in, Hong Kong's securities and investment industry. It sits within the HKSI Institute's licensing examination suite, which local licensed corporations and registered institutions use to satisfy competence requirements for regulated activities. Paper 7 suits candidates moving into roles that require broad market knowledge rather than narrow product specialisation: sales and relationship staff, operations and compliance personnel, product and research support, and graduates entering the industry. The syllabus spans the Hong Kong regulatory framework and market infrastructure, equity and debt markets, money markets, foreign exchange, derivatives and structured products, fund management and collective investment schemes, and corporate finance and listing activity. The HKSI LE Paper 7 case studies are 5 cases and about 2,572 words.
1Unauthorised Fund Marketing by a Type 1 and Type 9 Licensed Corporation
A Hong Kong licensed corporation holds Type 1 (dealing in securities) and Type 9 (asset management) licences, but not Type 4. Its 14 relationship managers serve 260 clients.
468 words, about 2 min2IPO Allocation, Stabilisation and a Connected Supplier Client
A Hong Kong IPO seeks to raise up to HK 2.0bn: 90% placing, 10% public offer and a 15% over-allotment option, with a price range of HK 8.00–HK 9.60. A cornerstone investor has agreed to take 30% of the deal at the low end, subject to a 6-month lock-up.
493 words, about 2 min3Bond Fund Mandate Breach and Redemption Pressure
An HKD bond fund has NAV of HK 500m. Its investment mandate requires at least 80% of assets in investment-grade bonds and modified duration not exceeding 5.0.
465 words, about 2 min4Hedging a USD Receivable under a Board Hedge Policy
A Hong Kong toy exporter expects to receive USD 20m in six months. Its board policy requires hedging at least 75% of foreign-currency receivables within five business days of invoicing.
499 words, about 2 min5Autocallable Note Suitability for a Retired Private-Bank Client
A private-bank client, aged 68 and retired, has liquid net worth of HK 24m. Her portfolio is 60% investment-grade bonds, 30% blue-chip equities and 10% cash.
647 words, about 3 min