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Who Can Start Trading on the Hong Kong Stock Exchange - and How?

Who Can Start Trading on the Hong Kong Stock Exchange - and How?

Who Can Start Trading on the Hong Kong Stock Exchange - and How?


Hong Kong stock exchange and share market details

Want to start trading stocks on the Hong Kong stock exchange? Unlike some of the other exchanges around the world, this one is unique in that you don’t need to be a large corporation to have access to it; however, there are still specific requirements and regulations you need to follow in order to be able to trade here. This article will explain everything you need to know about who can start trading on the Hong Kong stock exchange and how you can do so.


Fast Track Admission

Hong Kong stock exchange requires applicants to satisfy a number of criteria before admission. The following are the requirements for Fast Track Admission 1) at least three years of relevant experience;

2) strong track record in your current role; 2) sufficient level or relevance, financial or investment knowledge. However, you may also be granted fast-track approval if you meet two of these qualifications and have an application which is deemed appropriate by HKEx.


Qualified Foreign Professional

In order to trade in Hong Kong, it is necessary to be a qualified foreign professional. For those who are not resident of Hong Kong for 180 days of any 12 month period or those with residency status but not registered as an overseas Chinese under Hong Kong law are not considered qualified. To become a qualified foreign professional, you need to either (a) have at least one year's qualifying securities market experience; (b) have successfully completed certain qualifying securities market training courses; or (c) possess other qualifications prescribed by the SFC.


Employee of a Qualified Foreign Institutional Investor (QFII)

QFII is a legal procedure of Hong Kong stock exchange that allows an employee to trade in hong kong stock exchange. To be eligible, you must have a foreign citizenship and be an employee of a qualified institution. Qualified institutions are those established outside Hong Kong that have obtained approval from the HKEx for their employees to invest in HKEx securities and are subject to specified requirements including minimum capital.


Direct Offering by Issuers from Mainland China

A Direct Offering by Issuers from Mainland China (Mainland China Offering) is an offer of securities to be made exclusively in Hong Kong. The issuer will not offer any securities outside of Hong Kong, including in its home jurisdiction. In addition, a Hong Kong-incorporated company that is carrying on business outside of Hong Kong must have complied with all regulatory requirements applicable in that other jurisdiction before it can proceed with a Mainland China Offering.


Is it easy to buy shares directly

No, it's not easy to buy shares directly in Hong Kong. All shares are traded through a broker or dealer. Brokers will charge commission for buying and selling stocks but there is no commission for shares trading. Hong Kong stock exchange who and how can start trading Who can trade in Hong Kong stock exchange: Anybody with sufficient funds may start trading on the Hong Kong Stock Exchange.


Do I need any special skills?

You do not need any special skills to start trading on the Hong Kong stock exchange, but you will need to go through some legal procedures. Those living in Hong Kong can register for an account at one of the four stock exchanges. Foreigners who have been resident in Hong Kong for more than 7 years can also be granted permission by the Securities and Futures Commission (SFC) if they meet certain conditions.


Is there a limit to how much I can buy at once?

No, there is no limit to how much you can buy at once. The only thing to note is that if you buy over 20% of a company’s shares then your ownership in it becomes public knowledge. It also needs to be noted that unlike other stock exchanges such as London or New York, Hong Kong does not have an auction system for trading stocks.


Are there different ways of buying HK stocks?

Hong Kong stocks are traded in different ways. You can buy them directly from a Hong Kong broker, or you can trade them indirectly through a stock market outside of Hong Kong. If you want to trade Hong Kong stocks that way, your only option is the New York Stock Exchange (NYSE). Hong Kong securities firms cannot buy US stocks on their own account, but they can act as intermediaries by routing US-based trades for their customers.


Where are shares traded in Hong Kong?

Shares can be traded in a number of different ways in Hong Kong, with two of the most popular being over-the-counter (OTC) and exchange trading. The Hong Kong stock exchange also offers an online marketplace for trading shares, as well as providing brokers that offer this service to their clients. The Hong Kong stock market is open to all investors from all countries, and doesn't have any restrictions or limitations on who can trade shares there.


What are key investment considerations when buying HK stocks?

It is important to know who can trade in Hong Kong stocks, as well as what are key investment considerations when buying HK stocks. Some considerations may include:

-What are your investment objectives? -Do you have access to a brokerage account? What type of broker do you use? What about available assets for trading Hong Kong stocks (i.e., foreign shares)?

-How much money do you want to invest?


What is the role of brokerage firms in helping clients invest in HK stocks?

Brokerage firms in Hong Kong provide services to clients who want to invest in HK stocks. They help the client with the legal procedures of the Hong Kong stock exchange, as well as connecting them to a broker who can trade in HK stocks. Clients need to register with a brokerage firm before they are able to purchase any shares, but registration is free and only takes about 15 minutes.


Is there an investor education program for new investors in HK stocks?

The Hong Kong Securities and Futures Commission (SFC) has set up an investor education program  for new investors in Hong Kong stocks. Investors who want to trade in Hong Kong stocks can contact their brokerage company to see if they are eligible for this free training course. Alternatively, they can attend a course at the SFC’s Institute of Investor Education. 

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