Unlike the Australian and US markets, where you can buy any quantity of shares freely, the Hong Kong market requires trades to be completed in a specific quantity or multiples thereof. This is known as a board lot or trading unit.
The board lot size for a listed stock is determined by the company itself and can be viewed in the order pad. Any order quantity that is not a multiple of the board lot size is known as an odd lot and is not permitted by the exchange.
Example: Tencent has a board lot size of 100, meaning you must purchase in multiples of 100 (e.g. 100, 200, 300 units). On the order pad, use the + and − buttons under Quantity to adjust your order in board lot increments.
I have an odd lot balance as a result of a corporate action — what happens?
Selfwealth does not permit trades that do not comply with board lot requirements. If you are allocated an odd lot quantity as a result of a corporate action, a trade will automatically be placed in your account by Phillip Capital to convert the odd lot units to HKD cash.
Example:
Imagine you hold 400 shares in Tencent (Stock Code: 700). Tencent completes a bonus issue on a 1:3 basis, resulting in an additional 133 shares — bringing your total holding to 533 shares.
As Tencent's board lot size is 100, you would be unable to sell the full quantity of 533 shares. To resolve this, Phillip Capital will automatically facilitate a sell order for the odd lot of 33 units within 1–2 business days. The proceeds from this sale, net of any applicable costs, will appear in your account along with a contract note for your records.
Your Tencent holding would then be 500 units — a fully tradeable parcel on the exchange.