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Investing in Hong Kong

My dear Getquin friends,

I am currently very interested in a share from Hong Kong: CNE1000002J7 / $1919 (-0,2 %)

From your point of view, are there any concerns to be expected with such stocks?

In short:

- What is your experience with Hong Kong stocks?

- Do the dividends arrive on time?

- Is it easy to buy and sell?

- Are there any special regulations or restrictions that you should be aware of?

Thank you in advance for your feedback

5 Comentarios

Dividendenopi👴@Dividendenopi

I consulted GQintelligence with the following result:
Here are the key things you should look out for when trading Hong Kong stocks - always in line with an evidence-based, long-term investment strategy:

**1. currency risk**
- Hong Kong shares are traded in Hong Kong dollars (HKD). If you invest from the euro zone, you are exposed to exchange rate fluctuations between EUR and HKD. This can have a positive or negative impact on your return.

**2. market access & trading hours**
- The Hong Kong Stock Exchange (HKEX) has different trading hours than European stock exchanges. Be aware of time differences and possible liquidity differences.
- Not all brokers offer access to HKEX. Check whether your broker allows trading and what fees apply.

**3. taxes & withholding tax
- There is no capital gains tax on share profits in Hong Kong. However, dividends may be subject to withholding tax. Check whether and how this can be offset against your personal tax burden in Germany.

**4. fee structure**
- Foreign orders are often more expensive than domestic orders. Pay attention to order fees, exchange rate surcharges and custody account costs.
- Low costs are a key component of long-term investment success.

**5. regulation & investor protection**
- The Hong Kong Stock Exchange is well regulated, but investor protection may differ from European standards. Find out about the respective framework conditions.

**6. diversification**
- Individual Hong Kong stocks may be associated with specific risks (e.g. political developments, sector specifics). Broad diversification across regions and sectors remains crucial to spread risk.

**7. volatility & behavioral bias**
- Markets in Asia can be more volatile than in Europe or the US. Stay disciplined and avoid emotional reactions to short-term fluctuations.

**Example
Let's say you invest EUR 10,000 in a Hong Kong ETF. If the HKD rises by 5% against the EUR, your value in EUR will increase even without any price gains on the shares. If the HKD falls by 5%, your value will fall accordingly - regardless of the performance of the shares.

**Conclusion
Trading Hong Kong shares can contribute to global diversification, but involves additional risks and costs. Check whether these fit your long-term strategy and risk tolerance. Stay broadly diversified, keep costs low and invest with a clear plan.

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Dividendenopi👴@Dividendenopi

And then I had a look at tradegate, there were 4! orders that were executed....2000 shares were traded. The spread of a good 2% speaks for itself, so it is better to trade such securities on the liquid home exchange

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Rendite Rudin@RenditeRudin

@Dividendenopi Thanks for your input.
Since I trade via Swissquote, I buy directly via Hong Kong and therefore also in HKD.
It is exempt from withholding tax according to ChatGPT :)

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Dividendenopi👴@Dividendenopi

15H

@RenditeRudin yesaaaaa, I should start remembering that you live in Switzerland 😇

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Rendite Rudin@RenditeRudin

15H

@Dividendenopi haha all good😂😜

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