1. Grey Market is an over-the-counter (OTC) market. In Hong Kong, it is generally for pre-listing trading of IPO, which is carried out after market close on the trading day before the IPO listing. Grey Market is not trade through Hong Kong Stock Exchange (HKEx) trading system. It is trade and quote through the internal system of Hong Kong brokerage firms.
2. If the client successfully subscribes for IPO shares through KGI and wants to sell the IPO before listing, or if the client cannot allot any IPO shares or the allotted IPO shares is insufficient and wants to buy more IPO shares before the stock goes public. You can buy and sell during the grey market period.
3. Only IPO list on the main board of the Hong Kong Stock Exchange have grey market. IPO list on the Growth Enterprise Market have no grey market trading arrangements.
What is trading date and trading hours of Grey Market?
Grey Market trading date: the trading day before the IPO listing
Grey Market trading hours: 4:15pm – 6:30pm
If the Grey Market trading date is a half-day market, the trading hours: 2:15pm – 4:30pm
What account can I use to trade in Grey Market?
Both cash account and margin account can trade IPO in Grey Market.
Any real-time quote for Grey Market?
Yes. Client have free streaming real-time quote for Grey Market through KGI’s website, webtrade and KGI Power Trader.
What is the risk of trading in Grey Market?
Grey Market transactions are legal transactions. However, as it is an over-the-counter market, the liquidity and transparency are lower than trading in the main market of the Hong Kong Stock Exchange. Therefore, prices may have large fluctuations. The stock price trend after the listing of new shares may not be the same as that of the Grey Market. There may even have a huge gap.