The Hong Kong stock exchange is the fifth-largest in the world and the third-largest in Asia, according to 2019 data. This popularity makes it a good investment option for anyone interested in buying stocks.
Are you looking to invest in the Hong Kong stock market? Are you wondering how to buy stocks in Hong Kong? You can open an online brokerage account to buy Hong Kong stocks directly. You can use an online review platform to help you choose amongst the top-rated brokerage accounts in Hong Kong.
Once you open an account, you can place orders for various stocks and products. Not sure about the Hong Kong stocks market? This post highlights the details you need to know about buying Hong Kong stocks.
Follow our step-by-step guide below to start trading stocks in Hong Kong, and you could enjoy tremendous success by trading the Hang Seng Index and other popular indices.
Buying Stocks In Hong Kong
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Buying stocks in Hong Kong has never been easier. It can all be done with a computer and an internet connection. All you need to do is;
1. Find a good Hong Kong-based broker with an international trading platform. Some of the online, reputable, and reliable Hong Kong stock brokerage accounts include but are not limited to;
• Webull Securities Account
• FUYUAN Securities Investment Account
• Saxo Markets
• uSMART Securities
• SoFi Hong Kong Brokerage Account
• LONGBRIDGE Securities Account
• Fulbright Securities Account
• Futu Securities Account
• Valuable Capital Brokerage Account
• Interactive Brokers
• Metaverse Securities Investment Account
2. Register for a Central Clearing and Settlement System (CCASS) account via the broker
3. Fund your account using the available deposit methods. Please note that you may experience delays when transferring money from your bank account to the investment account. Therefore, you may miss some investment opportunities before the money reflects.
4. Decide on what stocks you want to invest in, such as Exchange Traded Funds and Real Estate Investments Trusts (REITs).
5. Buy your preferred amount of stocks during trading hours. You can trade Hong Kong stocks during the;
• Pre-opening Session (9:00- 9:30am)
• Morning Session (9:30am- 12:00pm)
• Extended Morning Session (12:00 pm – 1:00 pm)
• Afternoon Session (1:00pm – 4:00 pm)
• Closing Auction Session (4:00 pm – 4:10 pm)
You may incur trading charges such as stamp duty, the Central Clearing and Settlement System fee (CCASS), HKEX Trading Fee, stockbrokers commissions, and SFC Transaction Levy.
6. Keep checking your account and collecting your profits.
As a new investor, you will need to master several practical techniques for trading, such as;
• How to read a quote board, maintain your portfolio, set up a margin account, use a broker or an Internet platform,
• How to implement sound trading strategies, minimize risk, and practice thoughtful diversification, among others.
Benefits Of Investing In Hong Kong Stocks
Whether you are purchasing Hong Kong-listed shares from abroad or from Hong Kong, this is one of the best financial decisions you’ll ever make! Here are five benefits of investing in Hong Kong stocks;
1. Increased Value and Attractiveness of the Hong Kong Stock
Many investors are trading Hong Kong stocks in their portfolios. The reason is that Hong Kong stocks have been performing very well in recent years, besides many other reasons why investing in Hong Kong stocks may be a good idea.
2. Investors Enjoy Several Tax Benefits
As a Hong Kong stocks investor or stock trader, you can enjoy several tax benefits since Singapore does not impose any capital gains tax on HK stocks or levy any taxes on dividends received from stocks.
3. A fully Developed Financial Infrastructure
More importantly, English is one of the official languages, and international investors are welcome to invest in Hong Kong stocks listed on the Stock Exchange of Hong Kong (SEHK).
4. A Strong Bilateral Investment
Being a member of the World Trade Organisation (WTO), agreements with many countries, including those in the Asia Pacific region such as Mainland China, Australia, and New Zealand, entitles the nationals of these countries to invest in Hong Kong without restrictions.
5. Over $171 Billion IPOs Market In 2019
Hong Kong has been the biggest market for IPOs over the past decade, raising $171 billion in 2019 alone. The Hong Kong Stock Exchange is one of the largest and most liquid capital markets globally.
And yet, despite its size and potential, it still isn’t on many individual investors’ radar-even those looking to invest in China.
Hong Kong stocks are easy to invest in and offer many opportunities because they require very little regulation. The companies that make up the exchanges pay very little in fees or expenses.
Additionally, the Hong Kong stocks market is also very efficient, relatively easy to determine which stocks will perform well and which ones will not perform well. You need to grasp this lifetime opportunity and buy some stocks on the exchange!