We are Margin Stock Loans Specialists
We provide liquidity to shareholders of listed equities and offer an investment opportunity to accredited investors and institutions to invest in fully secured stock loans.
Having experienced both financial crisis in 1998 and 2008, founder of Charismatic Capital Ltd and a former private banker, Lam Ching Ching detected a niche opportunity. Hence, in 2014, she assembled a team and started originating and executing loans secured against Asian listed equities.
Her efforts were well paid off. Demand for stock loans has been insatiable. The virus pandemic has spurred the demand further. As our lending focuses on margin loan (non share title transfer) basis, hence, borrowers have great peace of mind pledging their shares collateral to us.
Our Competitive Advantage
Private lenders in Asia in this financing space are small and fragmented as majority are brokers and non-licensed and non-regulated private companies. As they have either meagre capital or limited balance sheet, they could only offer the Sale and Repurchase lending model which entails change of share ownership. Hence, they do not appeal to the borrowers in general.
As borrowers are typically majority shareholders or founders of listed companies, they prefer not the transfer their share ownership to the lender for the following reasons:
- Reduction of the burden of having to report consecutive sell and buy back transactions to the stock exchange for short term loan facilities.
- Retention of voting rights and dividend payouts.
Therefore, borrowers are willing to pay a premium to enjoy the above stated benefits.