How to buy Hong Kong shares - invest in the Hong Kong stock exchange
Hong Kong is often seen as the gateway to China by many people. Many Chinese stocks are inaccessible to foreign investors. However, the shares listed on the Hong Kong Stock Exchange are freely tradable. In this article we will discuss how to invest on the Hong Kong stock exchange.
Where can you buy Hong Kong shares?
The prices that brokers charge for buying and selling Hong Kong shares vary widely. In the overview below you can see an overview of reliable stockbrokers you can use to invest on the Hong Kong stock market:
|Buy Hong Kong shares without commissions. Your capital is at risk. Other fees may apply.
|Speculate with CFD's on increasing & decreasing prices of Hong Kong shares! 82% of retail CFD accounts lose money.
|Benefit from low fees, an innovative platform & high security!
|Speculate on price increases and decreases of Hong Kong shares with a free demo!
Pay attention to the transaction fees when you select a broker to buy Hong Kong shares with. By picking a broker with low transaction fees, you can achieve a higher return on your investments.
How to buy stocks listed on the Hong Kong stock exchange?
You can buy Hong Kong stocks through the Hong Kong stock exchange or through the US stock exchange. Many large corporations are listed on both the Hong Kong and US stock exchanges.
To buy a stock, you first need an account with an online broker. Then, search for the stock you want to invest in within your investment account. You can then open the investment directly at the prevailing price (market order) or at a fixed price (limit order). After you buy the share, it may take a few minutes before you see it within your account.
What are the benefits of investing in Hong Kong?
Since Hong Kong was converted into a special administrative region of China in 1997, the country has attracted a lot of investment. The country's financial sector is therefore well-developed and attracts a lot of money.
Hong Kong is situated in the centre of Asia and provides investment opportunities in various Chinese companies. The main benefits of investing in Hong Kong are:
- Access to Chinese companies through the Hong Kong stock exchange.
- Potentially higher returns on Chinese shares due to more growth potential.
- The ability to diversify your portfolio by investing in Hong Kong stocks.
What are the downsides of investing in Hong Kong?
The Hong Kong stock market is closely tied to international markets. When an economic crisis occurs, there is a high chance that stocks listed in Hong Kong will also take a hit.
There are also geopolitical risks associated with investing in Hong Kong. Social problems and China's growing influence over Hong Kong can slow down foreign investments. Furthermore, Hong Kong's economy is highly vulnerable to negative economic developments due to its heavy dependence on the financial sector.
In 2021, when China strengthened its grip on companies, many stocks listed on the Hong Kong stock exchange decreased in value. Chinese shares are often under pressure due to political pressure and regulations. This makes investing in Hong Kong stocks more uncertain.
How to achieve better results in Hong Kong?
When investing in the Hong Kong stock market, it is advisable to conduct thorough research on the companies. In the short term, you may see a lot of volatility in the market, but these strong movements do not necessarily reflect the real value of a company. Therefore, research the companies you want to invest in and study how China is performing on the global stage.
When investing in stocks listed on the Hong Kong stock exchange, it is recommended to follow these tips:
- Set an investment plan and determine how much you would like to invest in Hong Kong stocks.
- Do not invest emotionally: buy quality stocks and hold on to them for a longer period of time.
- Invest primarily for the long term. By investing for the long term, you can take full advantage of compound interest, which can exponentially grow your returns.
Monitor the exchange rate of the Hong Kong dollar
It is important to keep an eye on the exchange rate of the Hong Kong dollar. When investing in stocks listed on the Hong Kong stock exchange, you are indirectly investing in the Hong Kong dollar. When the share price rises, you receive the profit in Hong Kong dollars. If your currency loses value against the Hong Kong dollar, you can still lose money on your investment.
It is also possible to invest in the Hong Kong dollar itself by speculating on a currency's rise (or fall) in value. You can read about trading Forex this in this article.
What is the Hong Kong stock exchange?
The modern Hong Kong stock exchange opened on October 6, 1986, with 249 companies worth HKD 245 billion.
One interesting feature of this exchange is that the opening price of shares is determined by a pre-market session. The actual trading price of the shares is not determined until 9:20 a.m.
Another unique aspect is the one-hour lunch break that actually stops trading: the market is closed between 12 p.m. and 1 p.m.
The shares listed on the stock exchange are traded in lots. A lot may consist of 100 or 1000 shares, for example. It is not possible to buy 50 shares in this case. However, there are special markets where smaller quantities of Hong Kong shares can be traded.
Another intriguing rule is that limit orders must be placed close to the current share price: they cannot be more than 24 ticks away from the share price.
Hong Kong Share Index: Hang Seng Index or HSI
You can also invest in the Hang Seng Index or HSI. This index tracks the largest companies listed on the stock exchange in Hong Kong. By buying an ETF on this index, you can invest in a diversified basket of shares listed on the Hong Kong stock exchange.
Do you want to know how to invest in ETFs? In this article, you will learn everything you need to know!
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|How to buy HSBC shares (2024)? – invest in HSBC stocks
How to buy HSBC shares (2024)? – invest in HSBC stocks
Are you considering investing in HSBC shares? In this article, you can see where you can buy HSBC stocks. You can also check the current HSBC stock price here.
How to buy HSBC stocks?
Do you have confidence in the future of this large bank? Then you can buy HSBC shares. Transaction fees for investments in Hong Kong may be higher. Therefore, it is wise to compare the transaction fees of different brokers when you want to invest in HSBC shares.
In the table below, you can immediately see at what rates you can buy & sell HSBC stocks . Use the buttons below to open an account directly:
|Buy HSBC without commissions. Your capital is at risk. Other fees may apply.
|Speculate with CFD's on increasing & decreasing prices of HSBC! 82% of retail CFD accounts lose money.
|Benefit from low fees, an innovative platform & high security!
|Speculate on price increases and decreases of HSBC with a free demo!
What is the current HSBC stock price?
Do you want to know the current HSBC stock price? In the graph below, you can immediately see how the stock price has developed over the past period. You can also buy HSBC shares by pressing the buttons:
Company information for HSBC
Below, you can see the most important company information for HSBC.
Stock prices for the last 5 days
In the table below, you can see HSBC stock prices for the last 5 days:
What will the HSBC stock price do in 2024?
Are you curious about what analysts think HSBC will do in 2024 and the years thereafter? With the help of Alpha Vantage data, we have combined analysts’ forecasts. Please keep in mind that this figure is only a prediction about the HSBC stock price movement, and this prediction does not have to come true.
Why can it be interesting to buy HSBC stocks?
- Global presence: HSBC operates in more than 65 countries, which lowers the risk of an investment.
- Strong brand: HSBC has built a strong reputation, which makes it easier to attract new customers.
- Efficient: HSBC has reduced its costs, which allows the company’s profit margin to rise.
- Diversification: HSBC operates in different areas of banking, allowing the company to achieve good results.
What to look out for when investing in HSBC shares?
Many investors get excited about HSBC because of its high dividend payments. However, when investing in a bank like HSBC, it is also important to pay attention to potential risks.
Asia as a market
One risk with investments in HSBC is that its primary market is in Asia. The motto “the local bank of the world” does not fully apply here. One-third of its revenue comes from this region.
Stocks in banks are highly cyclical. Growth in China and Hong Kong specifically seems to be slowing down. This could potentially lower the profitability of HSBC. It is therefore especially critical to keep an eye on the economic situation when investing in HSBC stocks.
Not successful everywhere
It is also important to note that the bank is currently not very successful with its mortgage business in England and its investment business worldwide. This makes the bank more vulnerable to fluctuations in the economy.
Therefore, before investing in HSBC stocks, it is critical to closely monitor the sector and analyse the competition. This way, you can determine whether it is wise to buy HSBC stocks.
What are HSBC’s biggest competitors?
How to invest in HSBC stocks?
- First, open a brokerage account with a trusted broker.
- Next, go through the necessary steps to activate your brokerage account.
- You can then deposit money directly into your brokerage account.
- Select the HSBC stock to open the order screen.
- Within the order screen, enter the amount you want to invest.
- Press “buy” to immediately send the order to the stock exchange.
- Regularly schedule a moment to evaluate your investment in HSBC.
HSBC is a giant in the banking world, and operates in over 65 countries globally. The company is active in retail banking (individuals), corporate banking, and global banking. HSBC is listed on the London Stock Exchange, New York Stock Exchange, Hong Kong Stock Exchange, and Euronext Paris.
Due to the variety of financial services HSBC offers, there is some risk diversification, which can be a good reason to consider buying HSBC shares.
HSBC has been in existence since 1865 as The HongKong Shanghai Banking Corporation. The bank was established by a Scotsman to finance trade with the Far East. A year after its establishment, the company opened a branch in Japan. Later, it quickly expanded to India, the Philippines, and Vietnam.
Conservative Approach of HSBC
The company adopts a consistent approach to risk. HSBC helps to protect people by lending responsibly and offers sustainable growth in economies where the company operates.
This attitude is also reflected in the bank’s crypto policy. HSBC is anti-crypto and makes it difficult for customers to invest in Bitcoins.
Can You Buy Innocence?
Like several other banks, HSBC has been in the news regarding money laundering and possible fraud. Like other banks, they have chosen to settle the matter to prevent further proceedings.
HSBC as a Bank for the Drug World
Some time ago, I watched an episode of Dirty Money on Netflix. It revealed that HSBC had been financing drug cartels for years. They did this knowingly and did not take the compliance department seriously. Eventually, they only received a marginal fine. If you consider ethical investing important, it may be better not to buy HSBC shares.
Should you buy HSBC Shares?
Investing in bank stocks can be complicated, as it is difficult to fully comprehend the balance sheet. Investing in HSBC shares is not recommended for novice investors.
However, HSBC can still be an interesting investment. The HSBC brand is well-known, and the bank operates in many regions, which lowers the risks. Always take time to consider if HSBC stocks fit within your investment strategy.
When I was 16, I secretly bought my first stock. Since that ‘proud moment’ I have been managing trading.info for over 10 years. It is my goal to educate people about financial freedom. After my studies business administration and psychology, I decided to put all my time in developing this website. Since I love to travel, I work from all over the world. Click here to read more about trading.info! Don’t hesitate to leave a comment under this article.