The grey market is an over-the-counter market. In Hong Kong, it is generally used for pre-listing trading of new stocks, which is carried out on the trading day before the listing of new shares and after the market close. Hong Kong stock trading is generally matched through the Hong Kong Stock Exchange system during trading hours. However, grey market trading does not go through the exchange system, but through the internal system provided by some brokerage firms for quotation matching.

1.2 How to operate grey market trading on Moomoo Platform?

Update the client terminal to the latest version and perform the following operations to operate grey market trading. The first step is to find the grey market stocks you want to trade: Find the grey market stocks that will be listed the next day and want to trade in "Pending Listing"; The second step is to place an order: Enter the quantity and price to confirm the transaction.

1.3 What are the trading hours for grey markets?

Grey market trading hours are 16:15 ~ 18:30 on the trading day before the official listing of the new stock;

If the grey market is a half-day market, the trading hours are 14:15 ~ 16:30.

1.4 If the listing of new shares is delayed or cancelled, how will the transaction order be processed?

If the listing of new stocks is delayed or cancelled before the opening of the grey market, the grey market will be delayed to the trading day before the latest listing day or cancelled; If a new stock announces the delay or cancellation of listing after the start or end of the grey market, then: Postponement of listing: orders that have been filled are deemed valid and will be settled normally at L+2; orders that have not been filled will be cancelled; Cancellation of listing: All transactions of the new stock will be cancelled and deemed invalid. The funds or stocks deducted from the grey market trading of the new shares will generally be returned to the client's account one trading day after the listing is cancelled. Note: L: listing date, L+2 is the second trading day after the listing date

2. Risk Control Related

2.1 What are the buying power limits for grey market trading?

Because grey market transactions are over-the-counter transactions and there is a risk that all trading orders may be cancelled, the net cash from selling grey market stocks cannot be used to buy other stocks, and the net cash will be frozen until the company is successfully listed. Or the listing is cancelled. for example:

Suppose you hold Grey Market Stock A and have a cash balance of HKD 0. You then sell Stock A for HKD 2,000. During the freeze period, the HKD 2,000 sale proceeds will be frozen.

(1) If you wish to purchase regular Stock B during normal trading hours, your buying power will be HKD 0.

(2) If you wish to purchase Grey Market Stock C during grey market trading hours, your buying power will be HKD 0.

(3) If you wish to repurchase Grey Market Stock A during grey market trading hours, your buying power will be HKD 2,000.

Suppose you hold a grey market stock A, the cash in your account is 0, and you sell at 2000HKD at the time of grey market trading. The 2000HKD will be frozen. During the 2000HKD freeze period, there will be:

（1）If you want to buy stock B during normal trading hours, the buying power of buying B stock is 0 HKD;

（2）If you want to buy the grey market stock C during the grey market trading hours, the buying power of buying C stock is 0HKD;

（3）If you want to buy back the grey market stock A during the grey market trading hours, the buying power of buying back A stock is 2000HKD.

2.2 How is the frozen amount of grey market trading calculated?

The frozen amount generated during the grey market trading process = the cumulative net selling amount of grey market stocks, for example:

（1）If you buy 2000HKD grey market stock A. The frozen amount at this time = 0HKD

（2） Continuing the example above, if you sell another 3000HKD grey market stock A. The frozen amount at this time = 1000HKD

（3） Following the above example, if you buy 4000HKD stock B in the grey market. The frozen amount at this time = 1000HKD

（4）Continuing the example above, if you sell another 5000HKD grey market stock B. The frozen amount at this time = 2000HKD

That is, the final frozen amount = the net selling amount of grey market stock A + the net selling amount of grey market stock B.

2.3 Can Grey Market Stocks Be Used as Collateral for Financing?

Both cash accounts and margin accounts may trade grey market stocks. Margin account holders may use their available financing buying power to purchase grey market stocks. However, grey market stocks themselves cannot be used as collateral to obtain financing.

Difference Between Collateral-Eligible Stocks and Available Financing Buying Power.Collateral-Eligible Stock refers to a stock that can be pledged as collateral to generate financing buying power.

For example, if a client holds Tencent shares worth HKD 10,000 and Tencent is eligible as collateral, the client may obtain HKD 5,000 of financing buying power based on the applicable financing ratio.

Available Financing Buying Power refers to the financing amount generated from collateral-eligible stocks.

For example, a client may use the HKD 5,000 financing buying power generated from Tencent shares to purchase grey market stocks. However, the grey market stocks purchased cannot themselves be used as collateral to generate additional financing buying power.

3. Settlement Related

3.1 Trading and Settlement Rules

● Trading Rules

T+0 trading is also implemented in the grey market, and the stocks purchased in the grey market can be sold in the grey market on the same day. The electronic daily statement containing the transaction details of the grey market transaction will be will be available the next trading day (usually the day when the new stock is listed) after the grey market trading day.

● Settlement Rules

Grey market transactions will be settled on the second trading day after the listing day (Listing Day), that is, L+2 settlement; if there is financing due to grey market transactions, this part of the funds will also be at L+2 The interest is calculated from the date.

For example, the grey market of a new stock A was conducted on June 15, 2026 (Monday), and it was officially listed on the Stock Exchange on June 16, 2026 (Tuesday), and the settlement date and financing start date are 2026 June 18 (Thursday).

4. Quatation Related

4.1 The changes on the official listing date have nothing to do with grey market quotes

The rise and fall of the grey market quotation are calculated based on the IPO price of the new stock; after the grey market closes, the grey market quotation will remain until 24:00 Beijing time, and then reset to the IPO price. The decline is still calculated based on the IPO price of new shares.