Core Points - The article discusses two main methods for subscribing to new stocks in Hong Kong: cash subscription and margin subscription (financing subscription) [2][3] - Each method has its advantages and disadvantages, catering to different types of investors [2][3] Comparison of Basic Definitions - Cash subscription involves using personal funds to pay the full amount for new stock subscriptions [2] - Margin subscription allows investors to borrow money from brokers, requiring only a portion of the total amount (e.g., 10%) to be paid upfront [2] Key Comparison Dimensions 1. **Capital Requirements** - Cash subscription requires 100% of the available funds [3] - Margin subscription typically requires only 10% of the funds, allowing for greater purchasing power [3] 2. **Interest Costs** - Cash subscription incurs no interest costs [3] - Margin subscription incurs interest, which can range from 1% to over 10% annually, depending on market conditions and stock popularity [3][4] 3. **Winning Rate & Subscription Capacity** - Cash subscription limits the number of shares that can be subscribed based on available funds, resulting in a lower winning rate [3] - Margin subscription allows for a larger number of shares to be subscribed, increasing the chances of winning, especially for popular stocks [3] Risk Comparison - Cash subscription limits losses to the invested principal [5] - Margin subscription risks include potential losses exceeding the principal, as investors must also repay the broker's loan and interest [5][7] Subscription Process and Convenience - Cash subscription is straightforward, requiring only cash payment [5] - Margin subscription involves selecting the margin ratio, confirming interest, and ensuring sufficient collateral in the account [5] Suitable Investor Types - Cash subscription is recommended for investors with ample funds who prefer low risk and simple operations [8] - Margin subscription is suitable for investors with limited funds who wish to increase their chances of winning and are willing to accept interest and leverage risks [8] Summary of Advantages and Disadvantages - Cash subscription has no interest costs, controlled risks, and simple operations [9] - Margin subscription allows for increased subscription amounts and higher winning chances but comes with interest costs and amplified risks [9] Practical Recommendations - For popular new stocks and limited funds, margin subscription is advisable, while cash subscription or low-margin options are recommended for uncertain stocks to minimize risks [10] - Investors should assess their financial situation, risk tolerance, and the quality of the new stock when choosing a subscription method [10]