Hong Kong IPO fees explained: what the 1.00857% in the entry fee is
When you apply for Hong Kong IPO shares you pay four charges on top of the application money (offer price × shares applied). Each one is calculated on the application money and rounded to the nearest cent separately:
| Item | Rate | Collected for |
|---|---|---|
| Brokerage | 1% | Exchange Participant / HK eIPO White Form provider |
| SFC transaction levy | 0.0027% | Securities and Futures Commission |
| AFRC transaction levy | 0.00015% | Accounting and Financial Reporting Council |
| Trading fee | 0.00565% | The Stock Exchange of Hong Kong |
Together they come to about 1.00857% of the application money. The prospectus "entry fee" is the amount payable for one board lot on this basis.
Worked example
Offer price HK$5.07, board lot 1,000: application money HK$5,070.00; brokerage HK$50.70; SFC levy 0.13689 → HK$0.14; AFRC levy 0.007605 → HK$0.01; trading fee 0.286455 → HK$0.29. Entry fee = HK$5,121.14.
For several lots the fees are recomputed on the total and rounded once, so 10 lots can differ from 10 × entry fee by a few cents. The calculator's lot table follows this rule.
If you are not allotted
Application money and charges for unallotted shares are refunded. Broker handling fees and margin interest are the broker's own charges and are usually not refunded. The calculator calls them the "fixed cost".