Paper 8 Exam Study Guide (2026)
Everything the HKSI LE Paper 8: Securities tests, topic by topic: what each section covers, the facts that come up most, and how to study it. Pair it with the free 15-question practice test.
The exam at a glance
| Questions | 40 multiple-choice questions |
|---|---|
| Time | 60 minutes |
| Passing score | 70% |
| Format | Closed book, computer-based |
| Certifying body | Hong Kong Securities and Investment Institute (HKSI Institute) |
| Test provider | HKSI Institute computer-based test centre in Hong Kong, or Prometric centres outside Hong Kong |
Mind map: the whole exam on one screen
Read the complete Paper 8 study notes for “Securities Products”
Our first full set of comprehensive notes, about 10 minutes of reading: Shares · Warrants · Callable bull/bear contracts · Other listed products, a worked exam example, the traps examiners use and a one-minute recap. Create a free account to read it and see how premium notes work before you decide.
1. Securities Products
Shares, warrants, CBBCs and other listed products.
Key facts
- Ordinary shares carry voting rights and residual claims.
- Equity warrants are issued by the company; derivative warrants by third parties.
- CBBCs have a mandatory call when the underlying hits the call price.
- ETFs and REITs also trade on SEHK.
- Leveraged products can lose all of the investment quickly.
Flashcards
Exam tip: With CBBCs, the call can happen any time before expiry, not just at expiry.
2. Stock Exchange Trading and Settlement
How SEHK trades and settles.
Key facts
- Trading sessions: pre-opening, morning and afternoon continuous trading, closing auction.
- Shares trade in board lots set by each issuer.
- Stamp duty: 0.1% on each side since November 2023.
- Settlement is T+2 through CCASS.
- Spread table rules set the minimum price steps.
Flashcards
Exam tip: Board lot sizes vary by stock; never assume 1,000 or 100.
3. Listing and Corporate Actions
IPOs, rights issues, bonus issues and splits.
Key facts
- IPOs need a prospectus and HKEX approval.
- Rights issues let existing holders buy new shares, usually at a discount.
- TERP = (old shares × price + new shares × subscription price) ÷ total shares.
- Bonus issues give free shares; the price adjusts.
- Share consolidations combine shares into fewer, higher-priced shares.
Flashcards
Exam tip: Corporate actions don't change a holding's total value on the day; check that answers respect that.
Test yourself on these topics
Take the free 15-question Paper 8 test, then save your results to unlock your Readiness Score and the mistakes bank.
4. Margin Financing and Short Selling
Borrowing to buy and selling borrowed shares.
Key facts
- Margin loans are limited by the margin ratio set for each stock.
- Falling prices trigger margin calls.
Flashcards
Exam tip: Covered short = seller has a presently exercisable and unconditional right to the shares.
5. Securities Analysis
Ratios and valuation.
Key facts
- P/E = price ÷ EPS.
- Dividend yield = dividend ÷ price; payout ratio = dividend ÷ EPS.
Flashcards
Exam tip: Yield divides by price; payout ratio divides by earnings.
6. Dealing Practice and Client Protection
Rules for handling client orders and assets.
Key facts
- Client orders have priority over house orders.
- Best execution for clients.
Flashcards
Exam tip: Any answer that puts the dealer's own trade first is wrong.
How to pass
- 40 questions in 60 minutes is 90 seconds each.
- You need 70%: 28 out of 40, so you can only miss 12.
- Know the trading-day timetable: pre-opening session, continuous trading, lunch break and the closing auction session.
- Calculation questions (rights issue prices, P/E, yields, margin calls) are common. Practise them until they're quick.
Frequently asked questions
How long should I study for the Paper 8 exam?
Most working candidates need 4 to 8 weeks at 45 to 60 minutes a day. Book your exam once your Readiness Score has stayed at 80 or higher for about a week.
Can I take the Paper 8 exam online?
Yes. Paper 8 can be taken at the HKSI Institute's computer-based test centre in Hong Kong or, for candidates outside Hong Kong, at a Prometric centre (higher fee). Format: closed book, computer-based. Check the HKSI Institute's current candidate information for the rules.
What score do I need to pass the Paper 8 exam?
70%. The exam has 40 multiple-choice questions and a time limit of 60 minutes.
What are the most tested topics?
The outline covers securities products, stock exchange trading and settlement, listing and corporate actions, margin financing and short selling, securities analysis, dealing practice and client protection. Use the free practice test to see which ones you need most.
The premium Paper 8 study path
Premium Paper 8 prep is studied one topic at a time. Each step starts with that topic's key notes and flashcard deck, then its own question sets of 25, so you master one topic before you move to the next. When every topic is strong, the 6 full mock exams show you're ready.
Your step-by-step study path
- 1Securities Products10 key notes, 135 flashcards, then 500 practice questions in 20 sets of 25Notes free with an account
- 2Stock Exchange Trading and Settlement10 key notes, 135 flashcards, then 500 practice questions in 20 sets of 25Premium
- 3Listing and Corporate Actions10 key notes, 135 flashcards, then 500 practice questions in 20 sets of 25Premium
- 4Margin Financing and Short Selling10 key notes, 135 flashcards, then 500 practice questions in 20 sets of 25Premium
- 5Securities Analysis10 key notes, 130 flashcards, then 500 practice questions in 20 sets of 25Premium
- 6Dealing Practice and Client Protection10 key notes, 130 flashcards, then 500 practice questions in 20 sets of 25Premium
- Final step: 6 full mock exams50 questions each, timed like test day. Pass them, then book your exam.Premium
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Summarized from the HKSI Institute's official candidate information and the rules cited, checked October 2026. Confirm current requirements with Hong Kong Securities and Investment Institute (HKSI Institute).