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HKSI Licensing Examination Paper 8 (Securities) Exam Cram Sheet (2026)
The highest-yield points on the HKSI Licensing Examination Paper 8 (Securities)exam, grouped by the exam's real content areas. Print it, review the ones you keep missing, then drill them with free practice questions.
40questions
60 mintime limit
70to pass
6content areas
Overview of Securities Investments
15% of the exam- Money vs capital market
- The money market deals in short-term instruments (up to about one year); the capital market deals in longer-term bonds and equities.· Paper 8 Topic 1
- Hang Seng Index
- The HSI tracks the largest and most liquid companies listed on SEHK and is the main HK market benchmark.· Paper 8 Topic 1
Primary and Secondary Markets
20% of the exam- Primary vs secondary
- Primary-market transactions raise new money for the issuer; secondary-market trading transfers existing shares between investors.· Paper 8 Topic 2
- Sponsor
- A licensed corporate-finance firm (Type 6) that conducts due diligence and liaises with the Exchange and SFC on a listing.· Paper 8 Topic 2
- Rights vs bonus issue
- A rights issue raises new capital; a bonus issue capitalises reserves into free shares, leaving total value unchanged.· Paper 8 Topic 2
Participants in the Markets
15% of the exam- Custodian
- Holds securities in safekeeping and handles settlement, income and corporate actions for clients.· Paper 8 Topic 3
- Analyst independence
- Analysts must disclose relevant interests, present balanced research, and must not front-run their own reports.· Paper 8 Topic 3
- Regulators
- The SFC regulates the securities and futures markets; the HKMA regulates banks; HKEX operates the market infrastructure.· Paper 8 Topic 3
Types of Securities
25% of the exam- Preference shares
- Usually pay a fixed dividend and rank ahead of ordinary shares for dividends and capital, with limited or no voting rights.· Paper 8 Topic 4
- Bond price and yield
- Bond prices move inversely to market interest rates; longer-duration bonds are more rate-sensitive.· Paper 8 Topic 4
- Margin financing risk
- Leverage magnifies gains and losses; a margin call can force the sale of pledged collateral.· Paper 8 Topic 4
Stock Market Administration
12% of the exam- Order priority
- Orders execute on price-then-time priority: better-priced first, earliest first among equal prices.· Paper 8 Topic 5
- Stamp duty
- A government levy charged on transfers of HK stock, separate from broker commission and market levies.· Paper 8 Topic 5
- Segregation of duties
- Separating dealing, settlement and record-keeping so no one person controls a whole transaction.· Paper 8 Topic 5
Securities Analysis
13% of the exam- P/E ratio
- Share price divided by earnings per share; a core valuation metric in fundamental analysis.· Paper 8 Topic 6
- Technical analysis
- Uses past price and volume patterns, not financial statements, to forecast movements.· Paper 8 Topic 6
- Diversification
- Spreading holdings reduces unsystematic risk but not systematic (market) risk.· Paper 8 Topic 6
Now prove you know them
Reading the outline is not the same as recalling it under exam pressure. Drill 30+ free HKSI Licensing Examination Paper 8 (Securities) practice questions to find your weak areas, then sit a full timed mock — no signup, no paywall.
Study aid, not a substitute for the official material — always confirm the current rule with HKSI Institute — Licensing Examination. Last verified: August 2026.