The Basics Of Trading HK Market
By Hooi Mun Keong, Digital Educator
Dim Sum, Wan Tan Noodles and Stinky Tofu are not the only things Hong Kong (HK) is famous for.
The Hong Kong Stock Exchange (HKEX) ranks the 3rd-largest stock exchange in Asia, and the 5th in the world!!
Over 2,500 companies are listed and has become a desirable investment choice for Malaysian investors keen to expand beyond local borders. And did you know that Malaysian companies make up the 2nd largest foreign company segment on the HKEX?
I hope we’ve captured your interest as we deep dive further into the top 5 things you should know about the HKEX before dipping your toes into the HK market.
Thing 1: Trading Hours
The trading hours for HK market are (almost) the same as Bursa – making it even more convenient for you to trade. Market opens Monday to Friday (excluding public holidays) at the following times:
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Thing 2: Brokerage Fees
No surprise that we always maintain the low brokerage on the same familiar platform for our clients to continue receiving the same digital trading experience. Choose either to trade in MYR or HKD currency.
|
Trading Value |
Brokerage (RM) |
Brokerage (HKD) |
|
<RM700 |
1% of Trading Value (Min RM1) |
0.1% of Trading Value (Min HKD 35) |
|
RM700 to RM10K |
RM9 |
0.1% of Trading Value |
|
RM10K to RM100K |
0.10% |
0.1% of Trading Value |
|
>RM100K |
RM100 |
0.1% of Trading Value |
Psst, our brokerage fees both MYR and HKD settlement are the lowest currently available locally.
With our Foreign Currency Facility, convert funds between MYR and HKD seamlessly via iSpeed.my app and web platform at real-time with no additional FX fees.
Thing 3: Trading Units
The board lot size is determined by the individual issuers. Unlike Bursa where the minimum lot size (1 lot= 100 units) are applicable for all stocks, the minimum trading unit for HK stocks is 1 lot = 100 units, 1 lot =500 units, 1 lot = 1,000 units or 1 lot = 2,000 units, etc.
For example, for Tencent Holdings, 1 lot = 100 units while it's 1,000 units for Haidilao Int.
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Thing 4: Market Recovery Rally in 2023
Analysts expect to see a continued rebound of the HKEX on further signs that China will shift away from its zero-Covid and as a result investors may see a stock market rally when the country reopens.
Hong Kong’s benchmark index soared 6.2% in the first 2 weeks of December. Monthly stock performances support the view of a market recovery rally in 2023. Analyst are also anticipating an improved IPO market in 2023 due to a "more friendly macro environment at home and abroad."
In fact PWC expects a whooping 100 IPOs in 2023, raising between HKD180b to HKD200b!
Read more here
Thing 5: Home to Giant & Familiar Brands
Remember when we said that HK is not only famous for its food? It's also a hub for well-known and famous companies that are on the edge of achieving tremendous growth. So when you BUY their stocks, you’ll get to own them like a boss, literally.
Here's just a preview of well-known Hong Kong stocks:
You can view the full tradeable Hong Kong stocks HERE.
Ready to expand your trading portfolio to the land of egg tarts?
It is completely FREE and EASY, just activate your foreign market service via your dashboard. Or if you haven’t signed up with us yet, get a DUAL Account (Cash Upfront & Contra account) for FREE and REMEMBER to activate your foreign market service AFTER you’ve been approved. Once approved, start unlocking your PERKS!
