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How to Invest in Stocks in Hong Kong

How to Invest in Stocks in Hong Kong
The pretty orange and red coloured dragon weaves through the crowds of people in Liverpool's Chinatown chasing a pearl during Chinese New Year celebrations.

When people want to diversify their investment portfolio, they eventually turn to foreign stocks. After all, there are far more companies to invest in than exist within your home country, especially if you don’t live in one of the top five largest economies.

For those outside the US, America is the first place that foreign investors look to put their money. After that is China, the world’s second-largest economy.

Along with China, many people are hoping to invest in Hong Kong-based companies. Wondering how to buy Hong Kong stocks?

Lots of people get confused here. Does Hong Kong have its own stock market? Isn’t Hong Kong part of China? How can I get into Hong Kong stock trading?

If you have any of these questions, then keep reading to understand how to invest in Hong Kong today. 

Is Hong Kong Part of China?

Hong Kong used to be a British Colony. Not too long ago, it was turned back over to China. So basically, it is part of China but is considered a Special Administrative Region (SAR) of China.

This means that it’s inalienable from mainland China, but is still more or less governing itself. It promotes capitalism, while mainland China is a socialist nation. 

The most important thing for prospective investors to know is that Hong Kong does indeed have its own stock market and is the fifth-largest stock market in the world. This might come as surprise, considering Hong Kong is tiny, at only 427 square miles.

However, it is a financial hub of the world, and its many global corporations are continually growing. These stocks are widely sought after by investors. 

How to Buy Hong Kong Stocks

So, how can the average investor get in on the Hong Kong stock market if they aren’t a resident of the city? One option is to open a Hong Kong brokerage account. Companies such as Boom Securities are Hong Kong-based brokers that are open to global investors.

Otherwise, you can look at the availability of Hong Kong stocks to buy from your native brokerage account. Many of the larger companies have stocks listed on the US stock market, for example.

Lastly, consider buying into an ETF, which is a collection of stocks. You can find ETFs that focus on Hong Kong stocks, giving you easy access to the broader Hong Kong market.

Other foreign internationals, such as Australians, can also get in on the action with ease. View here for more information. 

Top Hong Kong Stocks to Buy

So what are the best stocks to buy in Hong Kong? There are many great options to choose from. A great place to start is the largest companies Hong Kong by market cap.

This includes companies like AIA Group, Hong Kong Exchanges and Clearing, Jardine Strategic Holdings, Sun Hung Kai Properties, and many others. 

Grow Your Wealth Through Diversification

Now that you know how to buy Hong Kong stocks, it’s time to get started. Get in on the action that online stock trading Hong Kong has to offer. Build your portfolio through diversification, and leverage the global economy to increase your wealth bit by bit.

Looking for more information like this? Head over to our blog to keep reading.