There are numerous ways to become an investor today. Everyone has access to financial tools that make investing easy to do. There are plenty of options to choose from, such as stocks, bonds, cryptocurrencies, and NFTs.
The mark of a good investor is a diversified portfolio, with investments in several different markets.
One of the most prominent markets in the world is the Hong Kong market. Hong Kong is the premier business city in the world, an economic powerhouse. Investors would be wise to include some investments in the Hong Kong stock market.
Here are some ways to become an investor in this bustling city.
HKEX: The Hong Kong Market
HKEX stands for Hong Kong Exchange. It is Asia’s largest exchange, with over 2,500 companies listed.
Trades on HKEX occur Monday through Friday, starting at 9:30 am. It closes for one hour during lunch, from noon to 1 pm. HKEX closes for the day at a random time between 4:08 and 4:10 pm.
As with most international markets, the easiest way for American investors to invest in Hong Kong is through exchange-traded funds on U.S. exchanges. One such ETF is iShares MSCI Hong Kong ETF.
Another method to invest is through American Depositary Receipts. These securities represent a foreign stock or investment, and trade on U.S. exchanges. Only a small number of HKEX companies are available through ADRs.
Keep in mind that any profits you make when you invest in Hong Kong are subject to a capital gains tax.
Invest Through an American Broker
ETFs are an indirect way to invest in the Hong Kong market. ADRs are a direct method, but the choices for investment are limited.
Investors that want a direct hand in investing in Hong Kong are best served by going through an American broker. Opening a brokerage account with a firm that provides a platform for international trading will give you all that you need to start investing. It also comes with the benefit of having a professional on hand to offer advice about potential investments.
Before you select a firm, check out which account types they offer, the commission structure, and the regions and countries in which they trade.
Another way to access the Hong Kong market is through online brokers. Look for online platforms that allow its users to participate in international markets. Some excellent apps with good reviews are Interactive Brokers, SAXO Bank, and TD Ameritrade.
Your Ultimate Financial Resource
The Hong Kong market is the best market for investing for American investors looking to expand their portfolios. There are internationally-recognized companies on the HKEX that you can profit from. To take advantage of the opportunities, ETFs and ADRs are a couple of ways to get started.
If you want a more direct path to the Hong Kong stock market, use an American brokerage firm or an online broker.
If you enjoyed this article, we invite you to check out more of our site. We provide resources on the latest financial news, from real estate, finances, and more. Subscribe to our site to stay up-to-date on the latest topics in finance.