Stock FAQs

how to invest in hong kong stock market from canada

by Charlie Schroeder Published 3 years ago Updated 2 years ago
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Invest on the dynamic Hong Kong Stock Exchange (HKEx) with the experience and expert support of HSBC InvestDirect - the first direct brokerage in Canada to offer online access to the HKEx:

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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.

Full Answer

How to invest in the Hong Kong stock exchange?

Investors who are keen on participating directly and widely on the Hong Kong stock exchange should open a brokerage account with a brokerage firm in their own country that offers a platform for international trading . Foreign companies must register with the U.S. Securities and Exchange Commission (SEC) to be offered as ADRs.

Where can I invest in the Canadian stock market?

Trade within certain business hours and access only Canadian investment options, which make up about 2.7% of the global market. Major Canadian stock exchanges include the Toronto Stock Exchange ( TSX ), Montreal Stock Exchange (MSE) and Canadian Securities Exchange (CSE).

What are the most popular stocks in Hong Kong?

Some of the most recognizable Hong Kong stocks include Baidu (Nasdaq: BIDU), Alibaba (Nasdaq: BABA) and Tencent (OTCBB: TCEHY). The highest concentration of equity in Hong Kong stocks is in the financial sector’s 539 stocks with a market capitalization of over $2.3 trillion.

How does the mainland affect the Hong Kong stock market?

The Mainland has a great influence on the Hong Kong stock market so you need to be aware of both markets to make a decision about selling or trading your stocks. According to an article published on StraitsTimes.com, there are a lot of investors from mainland China buying Hong Kong stocks.

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How do I buy stocks in Hong Kong?

How to Buy Stocks in Hong KongOpen a Trading Account. To trade in any financial market, you need to open a trading account with a reputable broker, whether you're based in Hong Kong or elsewhere. ... Fund a Trading Account. ... Get a Trading Platform. ... Buy Hong Kong Stock.

How can I buy Chinese stock in Canada?

You can buy, sell or hold these stocks with a domestic brokerage account the same way you would any other Canadian or US stock. If you plan to buy stocks in a Chinese company listed on a US exchange, you'll need a Canada-based trading platform that offers access to US stocks.

Can you buy Hong Kong stocks on TD?

(November 8 – 16:10 ET) – TD Waterhouse Group, Inc., a leading online financial services firm and the world's second-largest discount broker, announced today that the company has begun offering trading of local securities in Hong Kong.

Which brokerage can buy Hong Kong stock?

The best online brokers for beginners in Hong Kong in 2022 are:BrokerFees score#1Passfolio4.3#2TD Ameritrade4.2#3Alpaca Trading4.9#4CITIC Securities4.11 more row

How do I invest in the Yuan?

Investors can take positions in the yuan by opening a savings or deposit account with U.S. dollars, but the account is denominated in yuan. Investors can also buy exchange traded funds (ETFs) designed to mirror the performance of the Chinese currency.

How do I buy Alibaba shares in Canada?

Coming up nextCompany overview.Where to buy Alibaba stock.Step 1: Pick your trading platform.Step 2: Fund your trading account.Step 3: Decide how much you want to invest.Step 4: Choose between shares of stock or ETF.Step 5: Set up your order.Step 6: Place the order.More items...•

How do I buy international stocks in Canada?

There are two simple ways you can access foreign stocks from Canada:Invest directly in shares listed on global exchanges – such as Facebook and Apple – using a broker with an international share trading platform.Buy units in a global-themed exchange traded fund (ETF) or mutual fund.

Can I buy Chinese stocks on TD Ameritrade?

TD Ameritrade has no restriction on China stocks: spokeswoman | Reuters.

Can I buy foreign stocks on TD?

Some brokers, like TD Ameritrade, require that foreign listed stocks be purchased through U.S. based market makers. This means using the over the counter (OTC) market, and these stocks will most likely be listed on the Pink Sheets.

Can foreigners buy stocks in Hong Kong?

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.

Can TD Ameritrade trade Hong Kong stocks?

As we strive to bring you one unmatched investing experience, we assessed the international markets where both Schwab and TD Ameritrade operate and decided that as of February 28, 2022 TD Ameritrade Hong Kong is closed and no longer open or maintaining accounts.

Is it safe to invest in Hong Kong?

U.S. investors can easily gain exposure to Hong Kong's securities with ETFs, which provide instant diversification in a security that trades on a U.S. stock exchange. Benefits of investing in Hong Kong include being perhaps the most important financial center in the world as well as its geographical location.

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, ...

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 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.

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 are the major Canadian stock exchanges?

Major Canadian stock exchanges include the Toronto Stock Exchange ( TSX ), Montreal Stock Exchange (MSE) and Canadian Securities Exchange (CSE).

What are the advantages of international share trading?

Advantages of international share trading: Gain access to a wider variety of investment options. An internationally diversified portfolio can help protect you from the downturns of the Canadian market. You can trade 24 hours a day rather than only within set business hours.

How does exchange rate affect return on investment?

Exchange rates can fluctuate and can significantly hurt (or help) your return on investment. Foreign policy can affect your returns. It’s possible that changes to another country’s foreign policies, local instability or other issues can impact the value of your investment in ways beyond your control.

Unparalleled global reach

The greater your global reach, the greater the number of investment opportunities you can take advantage of. Only HSBC InvestDirect 1 1 View footnote 1 provides you with the power to trade in 30 of the world's major stock markets and provides you with the pricing, tools and insight needed to make more informed investment decisions.

Benefits of building a global portfolio at HSBC InvestDirect

Pay the lowest online Hong Kong Exchange trading commission in Canada (HK$288 2 2 View footnote 2 ). If you are an HSBC Premier or HSBC Advance client, you may also be eligible for up to 20% off international trading rates.

Trade online

Use your HSBC InvestDirect account to trade on these exchanges online.

Why is Canada an attractive investment?

Canada offers an attractive investment opportunity due to its robust economy and stable monetary policy. Benefits to investing in Canada include its extensive natural resources, stable rate of inflation, and low budget deficits. The country is limited in its economic diversity, however, and may not represent enough portfolio diversification ...

What are the natural resources of Canada?

Canada has an extensive natural resource base that ranges from precious metals to crude oil. These resources have allowed the country to export energy while sustaining itself at the same time.

Is Canada a safe country?

Canada is considered to be one of the safest countries in the world, with a strong natural resource base and a stable monetary policy. It is a robust polity with a low budget deficit . Investors may want to be wary of the country's strong ties to the U.S., which can mitigate the beneficial effects of diversification.

Is Canada a trading partner?

Canada's economy is strongly correlated to that of the U.S. as its largest trading partner, according to the U.S. Census Bureau. It means that the country may not offer as much diversification for U.S. investors as other markets. Canada's economy derives much of its strength from natural resource commodities.

What are the economic factors that affect Canadian mining stocks?

Another key economic factor is the price of minerals mined in Canada and widely exported, including gold, platinum, titanium, nickel, uranium, cadmium, potash, cobalt, diamonds and other gemstones, salt and graphite that can affect Canadian mining stock values .

What is Questrade trading?

Questrade, a low-cost Canadian online broker born in 1999, has grown up to become the largest independent fintech in Canada. It provides self-directed and managed investing and trading in diverse asset classes such as equities, bonds, forex, commodities, options, and ETFs.

When will the TSX return to all time high?

Although this was reflected in the Toronto stock market index and many individual stock prices in the Spring of 2020 when global stock markets tumbled, the TSX has since recovered all of its losses to post a new all-time high in January 2021.

What is the Canadian dollar?

The Canadian dollar (CAD) is the world’s 5th largest reserve currency and accounts for 2% of global Central Bank reserves as of December 2019. Nicknamed the “loonie,” the Canadian dollar also ranks as the 7th most actively traded national currency worldwide. Exclusive Offer! claim now. Exclusive Offer!

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