HKSI Licensing Examination Paper 8 (Securities) Practice Test
In the HKSI LE Paper 8 (Securities) guide: 12 worked calculations set inside the 6 chapters, where the maths comes up. Practice here stays free.
| Administering body | HKSI Institute (Hong Kong Securities and Investment Institute) Source: HKSI Institute — Licensing Examination for Securities and Futures Intermediaries: Overview |
|---|---|
| Questions | 40 questions Source: HKSI Institute — Licensing Examination for Securities and Futures Intermediaries: Overview |
| Time limit | 60 minutes Source: HKSI Institute — Licensing Examination for Securities and Futures Intermediaries: Overview |
| Passing score | 70% Source: HKSI Institute — LE Examination Handbook (Version 20240601, PDF) |
| Fees |
Source: HKSI Institute — Licensing Examination for Securities and Futures Intermediaries: Overview |
| Languages offered | English · Traditional Chinese Source: HKSI Institute — Licensing Examination for Securities and Futures Intermediaries: Overview |
Frequently asked questions
How many HKSI Licensing Examination Paper 8 (Securities) practice questions are here?+
A full bank of original HKSI Licensing Examination Paper 8 (Securities) practice questions across the official content areas, weighted like the real exam, with explanations. Free, no signup.
What is the HKSI Licensing Examination Paper 8 (Securities) exam like?+
About 40 questions, 60 minutes, and you need 70% to pass. Practice by topic here, then take the full timed mock exam to gauge readiness.
Are these the real exam questions?+
No. Every question is 100% original, written from public primary sources with explanations. We never copy real exam questions or paid prep material.
Can I study in Chinese or Spanish?+
PrepPass practice is in English, 中文 and Español. The official exam is in English — switch the question language to English any time to rehearse the exact terminology you'll see on test day.
Is there a study guide for the HKSI Licensing Examination Paper 8 (Securities)?+
Yes. PrepPass sells HKSI Licensing Examination Paper 8 — Complete Study Guide (2026), a PDF + EPUB download, $19.99 one-time; the practice on this page stays free without it. See the study guide →
Sample practice questions
A few real questions from this free bank, with full explanations. Use the practice tool above for the whole set.
- 1. Overview of Securities Investments
The best-known benchmark index of the largest companies listed on the Stock Exchange of Hong Kong is:
- a.The FTSE 100
- b.The Nikkei 225
- c.The Hang Seng Index
- d.The S&P 500
Answer: c
Explanation: The Hang Seng Index (HSI) is the principal benchmark tracking the largest and most liquid companies listed on SEHK. The S&P 500, Nikkei 225 and FTSE 100 are the US, Japanese and UK benchmark indices.
- 2. Types of Securities
Accrued interest on a bond is:
- a.The stamp duty payable on a bond trade
- b.Interest the issuer has already defaulted on
- c.A financial penalty that the buyer is charged by the exchange whenever settlement of the trade is completed late
- d.Interest earned since the last coupon date, which the buyer pays to the seller
Answer: d
Explanation: Between coupon dates interest builds up daily. A buyer compensates the seller for the interest accrued from the last coupon to the settlement date, since the buyer will receive the whole next coupon.
- 3. Types of Securities
A benefit of holding a floating-rate note when interest rates are rising is that:
- a.It stops paying interest when rates rise
- b.Its market price falls sharply as soon as market interest rates rise, in the same way as a fixed-coupon bond
- c.Its coupon rises with market rates, so its price stays relatively stable as rates increase
- d.It automatically converts into equity
Answer: c
Explanation: Because an FRN's coupon resets upward with market rates, its income keeps pace with rising rates and its price shows little change, unlike a fixed-coupon bond whose price falls when rates rise.
- 4. Overview of Securities Investments
The bid-offer (bid-ask) spread is:
- a.The dividend paid on a share
- b.The gap between the price at which an investor can buy (offer) and sell (bid), representing an implicit trading cost
- c.The commission the executing broker charges the client for arranging and carrying out the purchase or the sale
- d.A tax levied by the government
Answer: b
Explanation: Market makers quote a lower bid (buying) price and a higher offer (selling) price; the difference is the spread. An investor effectively pays this spread on a round trip, so wider spreads raise the cost of trading.
- 5. Primary and Secondary Markets
During the pre-opening session on SEHK, orders are accumulated and then executed at a single price determined by:
- a.A random draw made by the trading system among all the orders received
- b.The very first order that happens to be entered into the system that morning
- c.Whichever broker in the queue is offering to pay the highest commission
- d.An auction algorithm that matches at the price maximising the number of shares traded
Answer: d
Explanation: In the pre-opening (order-input/matching) auction, orders build up and are matched at the calculated opening price that maximises executable volume, with any residual then allocated by price and time priority. Continuous trading follows afterwards.
- 6. Primary and Secondary Markets
A 'scrip dividend' option offered to shareholders allows them to:
- a.Take new shares instead of a cash dividend
- b.Convert their ordinary shares into fixed-rate bonds
- c.Receive double the normal cash dividend for that period
- d.Sell their shares back to the company at a fixed premium
Answer: a
Explanation: A scrip dividend lets shareholders elect to receive additional new shares in place of the cash dividend, allowing the company to retain cash while giving investors a way to increase their holding without paying brokerage or stamp duty on a market purchase.
- 7. Participants in the Markets
A 'Licensed Representative' of a securities firm is a person who:
- a.Is prohibited from dealing with any of the firm's clients
- b.Is an employee working solely for the statutory regulator
- c.Owns the whole of the licensed corporation and personally controls and directs all of its regulated activities and its representatives
- d.Is licensed to carry on a regulated activity for the firm but does not have supervisory responsible-officer status
Answer: d
Explanation: A Licensed Representative is an individual accredited to a licensed corporation to carry on a regulated activity (for example dealing with clients), but without the supervisory role of a Responsible Officer. Representatives must still meet fit-and-proper and competence requirements.
- 8. Stock Market Administration
While a VCM cooling-off period is in force, trading in the affected security:
- a.may continue but only within the permitted price band
- b.stops completely until the next day
- c.may occur at absolutely any price without any limit, exactly as in normal continuous trading
- d.moves automatically to another exchange
Answer: a
Explanation: During the cooling-off period trading continues but is confined to the permitted price band around the reference price, allowing the market to absorb information without an abrupt price spike. It is not a full halt.
- 9. Stock Market Administration
Indices such as the HSI adjust their constituent weights for free float in order to:
- a.favour state-owned firms
- b.increase index turnover fees
- c.reflect only the shares actually available to investors
- d.reduce the number of constituents to ten
Answer: c
Explanation: Free-float adjustment ensures each constituent's index weight is based on the shares genuinely available for trading, giving a more investable and representative benchmark. Closely held, restricted shares are excluded from the weighting.
- 10. Securities Analysis
A 'resistance' level in technical analysis is a price at which:
- a.selling pressure tends to halt a price rise
- b.the index rebalances its constituents
- c.stamp duty doubles
- d.buying interest halts a fall
Answer: a
Explanation: Resistance is a price area where selling pressure tends to cap an advance, as sellers become active. A decisive move above resistance (a breakout) is often read as a bullish signal.