Stock FAQs

how to buy hong kong stock in uk

by Hubert Nitzsche Published 3 years ago Updated 2 years ago
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Five steps to buying Hong Kong shares in the UK.

  • Choose whether you want to trade or invest in Hong Kong shares.
  • Open an account.
  • Understand the charges of buying Hong Kong shares in the UK.
  • Choose the Hong Kong shares you want to buy.
  • Buy Hong Kong stocks.

How to buy Hong Kong shares in the UK
  1. Choose whether you want to trade or invest in Hong Kong shares.
  2. Open an account.
  3. Understand the charges of buying Hong Kong shares in the UK.
  4. Choose the Hong Kong shares you want to buy.
  5. Buy Hong Kong stocks.

Full Answer

What are the best things to buy in Hong Kong?

Where to Buy Electronics

  • Golden Computer Centre: Sham Shui Po, the northwestern part of the Kowloon Peninsula (a short stroll from Sham Shui Po's MTR Station)
  • Mong Kok Computer Centre: 8 Nelson Street, Mong Kok, Kowloon
  • Wan Chai Computer Centre: 130 Hennessy Road, Wan Chai, Hong Kong Island

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How to invest in the Hong Kong stock market?

(RTTNews) - The Hong Kong stock market has climbed higher in back-to-back sessions, gathering more than 450 points or 1.8 percent along the way. The Hang Seng Index now rests just above the 26,350-point plateau although it figures to spin its wheels on ...

How to apply for Hong Kong offer shares?

HOW TO APPLY FOR HONG KONG OFFER SHARES 2 otherwise participate in the International Offering. 3. APPLYING FOR HONG KONG OFFER SHARES Which Application Channel to Use For Hong Kong Offer Shares to be issued in your own name, use a WHITE Application Form or apply online through [website].

Does Hong Kong and Taiwan have the same currency?

When Hong Kong was established as a free trading port in 1841, there was no local currency in everyday circulation. Foreign currencies such as Indian rupees, Spanish or Mexican 8 reales, and Chinese cash coins circulated.

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How can I buy Hong Kong stocks?

Investors can also trade Hong Kong stocks by opening an account with a brokerage firm that offers an international trading platform.Trading on the Hong Kong Stock Exchange.Exchange-Traded Funds (ETFs)American Depository Receipts.Invest Directly Through a Broker in Your Country.More items...

Can I buy Hong Kong stocks on Hargreaves Lansdown?

You can buy or sell Hong Kong Exchanges & Clearing Ltd shares through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account.

Can UK citizens invest in Chinese stocks?

When you're ready to invest or trade Chinese stocks in the UK and you've selected the company you want to take a position on, you can buy the stocks. Once you've bought them, you'll need to monitor the share price movements to ensure that it is moving in the way you expected.

How can I buy Chinese stocks directly?

How to invest in Chinese stocks Invest in Chinese stocks via listed American Depository Receipts (ADRs) Use a broker that offers access to Hong Kong-listed and Chinese mainland-listed stocks. Invest in a U.S.-listed China Exchange Traded Fund (ETF) Invest in an unlisted China Mutual Fund.More items...•

How do I buy international shares in the UK?

5 steps to buying international sharesChoose how you want to buy international and foreign stocks.Understand the charges to buy international shares.Open an account.Choose the international shares you want to buy.Buy international stocks.

What happens to my shares if Hargreaves Lansdown goes bust?

Investors are likely to be covered by the provisions of the Financial Services Compensation Scheme (FSCS), if Hargreaves Lansdown ceases trading. It can award up to £85,000 in compensation to any one investor where they decide that an investment business is in default and is unable to satisfy any claims against it.

How can foreigners buy Chinese stocks?

The channel through which foreigners can buy A-shares is called the Qualified Foreign Institutional Investors Programme (QFII) and it provides access to 3560 companies listed on both Shanghai and Shenzhen exchanges.

Is China a good investment for 2022?

Attractive opportunities amid China's fast‑changing environment. Better understanding of Beijing's long‑term policy agenda helps investors navigate the regulatory environment in China. With signs of economic deceleration, the balance might be shifting back to support growth in 2022.

Does Vanguard have a China ETF?

Vanguard announced its exit from the Hong Kong market in August 2020. This announcement means Vanguard will cease its onshore presence in Hong Kong, including making an orderly exit from our Hong-Kong ETFs. All Vanguard Hong Kong ETFs have now been delisted as part of this exit.

Can Etrade buy Hong Kong stock?

To trade online, Charles Schwab users need to open a separate global account, which charges HK$250 ($32) per order. They can also trade by phone for a higher commission. E*Trade and Robinhood users cannot trade on foreign exchanges. U.S. investors will need Hong Kong dollars to purchase H-shares.

How do I invest in CATL stock?

How to Buy CATL StockPurchase through Interactive Brokers: Interactive Brokers is one of the few U.S. brokerages that allow American investors to buy Chinese class A shares.Buy a battery-themed ETF that owns CATL: There are several ETFs that target the electric battery market and own shares in CATL.More items...•

Can Interactive Brokers trade Hong Kong stocks?

Interactive Brokers' clients now enjoy commissions of HKD 0.015% - 0.05% of trade value2 on Hong Kong stocks, and there are no added spreads, account minimums or platform fees. The minimum commission is HKD 18 for SEHK Stocks and CNH 15 for Shanghai-Hong Kong Connect and Shenzhen-Hong Kong Connect Stocks.

Choose whether you want to trade or invest in Hong Kong shares

There are two ways you can get exposure to Hong Kong stocks – you can either invest in them directly via our share dealing service - if they have a dual listing on a US stock exchange, or you can trade them using derivatives such as spread bets or CFDs.

Open an account

To start investing, you can open a shares account in just a few minutes. You can open your account online – on our website or via our app. If you’d prefer to trade on a share’s price movements, you can open a live trading account instead. Alternatively, you can build your confidence with a demo account, which offers £10,000 in virtual funds.

Understand the charges of buying Hong Kong shares in the UK

If you’re looking to invest in Hong Kong stocks (remember, they must be dual listed on a US stock exchange), you could qualify for our zero commission rate. You’ll have to place three or more trades in a particular month to pay £0 commission. Our standard commission rate is £10. We’ll automatically convert your pounds into HKD for just a 0.5% fee.

Choose the Hong Kong shares you want to buy

Hong Kong offers a plethora of gaming, technology and fintech stocks – to name a few. The famous tech trio known as BAT – Baidu Inc, Alibaba and Tencent Holdings – is dual listed. This means you can invest in these shares with us, or trade them.

Buy Hong Kong stocks

Once you’ve created an account and you’ve decided which Hong Kong stocks you’re interested in, you can start buying shares. If investing via share dealing, you can buy shares ‘at quote’ or ‘on exchange’. If trading via derivatives, you’ll ‘buy’ the market to open a long position, or ‘sell’ to open a short one.

Why invest in Hong Kong shares?

Hong Kong has been a centre of international trade for centuries and remains one of the world’s major finance hubs. There have been big changes since the British ceded control of its former colony to China in 1997. However, it remains a popular tax-friendly region, and is one of the best routes for investing in China.

About the Hong Kong Stock Exchange

The Hong Kong Stock Exchange is one of the largest markets in Asia with a market capitalisation of HK$45.5 trillion (November 2020). Over 2,500 companies are listed on the exchange, a figure that has more than doubled since 2008 thanks to the rapid economic growth of both Hong Kong and China.

How to buy Hong Kong shares with ii

To buy Hong Kong shares with ii, you will need to first open an account .

Most popular Hong Kong shares

Below is a preview of the most purchased shares by ii customers over recent months.

Fees and charges

It costs £9.99 a month to join ii, which includes our Stocks and Shares ISA, Trading Account and Junior ISA. Add a SIPP for just £10 a month extra.

News and insights

Please remember: The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The value of international investments may be affected by currency fluctuations which might reduce their value in sterling.

How to gain exposure to Hong Kong?

The easiest way for U.S. investors to gain exposure to Hong Kong's securities is through exchange-traded funds (ETFs). These provide diversification as well as ease of trading without the currency risk. Popular exchange-traded funds in the category include iShares MSCI Hong Kong ETF and First Trust Hong Kong AlphaDEX Fund.

What is Hong Kong called?

Hong Kong is called a special administrative region (SAR) and is free to pursue capitalism and manage its own taxes, money, trade, foreign exchange, and currency: the Hong Kong dollar.

Do foreign companies have to register with the SEC?

Foreign companies must register with the U.S. Securities and Exchange Commission (SEC) to be offered as ADRs. Brokerage firms that offer international access generally offer many international exchanges, including Hong Kong’s. Make sure to research brokers thoroughly before trading with them.

Should investors choose Hong Kong stock exchange?

Investors should take care to base decisions on company earnings and economic factors and not just on price fluctuations. On the whole, investors should choose their preferred route to the Hong Kong Stock exchange after understanding the costs, risks, tax considerations, and regulatory compliance involved.

Is Hong Kong a British colony?

Hong Kong has come a long way. As a British colony, it was described as a “barren rock” by former British foreign secretary and prime minister Lord Palmerston. Today, the Hong Kong Stock Exchange is reportedly the fifth largest in the world by market capitalization. Here are some direct and indirect routes for investors to gain exposure to ...

What is the currency of Hong Kong?

The Hong Kong dollar (HKD) is the currency used in Hong Kong and is currently ranked 14th by the Bank for International Settlements (BIS) among the most actively traded world currencies by global turnover. The Hong Kong Securities and Futures Commission (HKSFC) is Hong Kong’s primary financial regulator and is responsible for overseeing trading in ...

What is the Hong Kong Securities and Futures Commission?

The Hong Kong Securities and Futures Commission (HKSFC) is Hong Kong’s primary financial regulator and is responsible for overseeing trading in the local stock, forex and contract for difference (CFD) markets.

What is the oldest stock index?

The SEHK’s oldest and main stock market index is the Hang Seng index , which comprises 50 of the largest companies listed on the SEHK. The index was launched in 2001 to provide a broader benchmark that covers roughly 95% of the SEHK’s total market capitalization.

Why is Hong Kong important to China?

Also, because of the city’s location, strong financial infrastructure and history, it often acts as a gateway for foreign firms looking to access markets in Mainland China. Another major advantage of operating in the Hong Kong financial markets is the fact that there are no controls over the movement of capital.

How much money did mainland investors buy in 2020?

By the end of 2020, however, mainland investors had bought approximately $86 billion of shares on the SEHK, which was the highest volume seen since trading links with offshore exchanges began in 2016. Also, new Hong Kong companies have raised over $51.3 billion in initial and secondary public offerings.

When did Hong Kong become a SAR?

Hong Kong was later leased to the British for 99 years in 1898. Hong Kong returned to Chinese rule in 1997 when it became a Special Administrative Region (SAR) of the People’s Republic of China. Financial markets in Hong Kong have a long history and began operating with the establishment of the first stock exchange there in the late 1800s.

Is HSBC a subsidiary of Hong Kong?

For traders based in Hong Kong, a subsidiary of the Hong Kong Shanghai Banking Corp. (HSBC) called HSBC Broking Services Limited provides a complete brokerage service for the SEHK and is fully regulated by the Hong Kong Securities and Exchange Commission (HKSEC). Also, you may be able to access HSBC’s other subsidiaries that include HSBC Broking Forex, HSBC Broking Futures and HSBC Broking Securities.

What is HKEx trading?

The Hong Kong Exchanges and Clearing Limited (HKEx) is the securities trading and clearing systems market operator. Apart from stocks, it also sets up trading for ETFs (exchange-traded funds), REITs (real estate investment trusts), derivative warrants, and even debt securities. If you want to know the latest in the market, ...

What is buying stocks?

Buying stocks is a form of equity investment. It refers to buying a share of a company. When the company profits rise, your shares will grow with it. If you can get a dividend with your shares, you even get to have voting rights that will give you a say about the direction and future of the company.

Why is global risk prominent in Hong Kong stock exchange?

Global risk is prominent in the Hong Kong stock exchange because it is an open market. Understand the risks and you can make smart decisions about the companies you will choose to invest in. Step 4: Get in touch with a licensed stockbroker.

What is H shares?

H shares refer to foreign shares that are incorporated in the Mainland but listed in the Hong Kong stock exchange and uses HK dollars in trading. There are other shares like the A shares and the B shares that you can also trade in. All three shares are issued by state-owned enterprises.

What is the general rule of investing?

The general rule of investing is this: the higher the risk, the greater the return and the lower the risk, the lower the return. There are various risks involved in trading in Hong Kong. You have market risks, interest rate risks, global risks, and business risks – among others. These indicate the factors that can influence the risk ...

What does it mean when the value of a stock is low?

When the value of the stocks is low, that means you can buy more with the money that you have. Once the market starts improving, the value of the stocks that you bought will also increase – bringing a growth to your investment.

How long after the market opens before buying?

Buying when the market opens is usually not a good idea. Wait until an hour or so after it opens before you buy. In case you want to sell, experts reveal that the market open is the best time to do that. Refrain from being emotional. Your emotions can lead you to make the wrong choices about your investments.

What to know about US stock market?

US shares tend to be popular among UK investors as the US markets are the world’s largest and they contain many of the biggest companies in technology, healthcare, and other sought-after industries.

What happens if you hold US shares in another currency?

Foreign exchange risk. If you hold assets quoted in US dollars or another currency then you’re exposed to foreign exchange risk. This means that if the US dollar falls against the pound then the value of your US shares also falls.

What time do the markets open in the US?

The main US markets are open from 9:30am EST to 4pm EST. That’s 2:30pm to 9pm UK time (although the US often changes its clocks on different weekends to the UK so, at times, that can shift things back or forward by an hour).

Is it a good idea to invest in an ISA?

Holding shares in an ISA is often a good idea as it can save you from paying income tax on your dividends and capital gains tax on any profits. And the same principle applies if you’re buying US stocks in the UK.

Is Amazon a UK company?

Yes, as one of the largest companies in the world, Amazon has become a popular holding for many UK investors. Most brokers will allow you to buy and sell its shares as easily as would for any UK-based company. « How To Build A Stock Portfolio. How to invest in index funds ».

Is the US market bigger than the UK?

Because the US market is much larger than the UK, it has a much wider range of companies to choose from and has many businesses, particularly in technology, where there is no real UK equivalent. So adding US shares to a UK portfolio can be a good way of filling in the gaps, so to speak, giving you a more rounded collection of stocks.

Is it harder to buy US shares from the UK?

Buying US shares from the UK might seem a little daunting, particularly if you’re a relative newcomer to the stock market. But it really isn’t all that much harder than buying British shares. There are a few things to watch out for, in particular taxes, currency movements, and additional dealing costs.

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