How to Open a Hong Kong Brokerage Account

#What is a Hong Kong securities account for?

With an online brokerage account, you can trade stocks, funds, bonds and other financial products listed on the major Hong Kong stock exchange. The biggest advantage is that you can buy and sell US stocks.

Compared with opening a US brokerage account as a US resident, mainland Chinese residents can, provided they comply with the relevant laws and regulations, enjoy the US capital gains tax relief for non-resident investors when investing in US stocks (US residents pay a 30% capital gains tax). Note that this relief only applies to products within the investment system recognized by the IRS (the US Internal Revenue Service).

#The current state of online brokerage accounts

Once you've successfully set up a Hong Kong bank account following the steps above, you can move on to a securities account. The online brokers that people have successfully opened accounts with so far are Hstong Securities and Futu Securities. Previously it was said that people holding mainland ID cards could not open accounts, but (tested personally: positioning in Hong Kong lets you complete the account opening process) it is still workable as of now.

#Steps to open a brokerage account

Search for Futu Securities or Hstong Securities in your browser.

• Futu Securities

Trading fee details:

• Hstong Securities

For trading fees, refer to the official website.

Both platforms basically charge a platform fee plus commission on every trade. For example, the minimum for a Hong Kong stock trade is HK$25, and the minimum for a US stock trade is US$2.

#Key points to note

• Download the app

If you have an Android phone (not Huawei), you can search for both brokers on Google Play while you are in Hong Kong. You can also visit their official websites to download the apps. On iPhone, you need to create a non-mainland account and switch the region in the App Store before downloading.

• Choose mainland identity when registering

Although these online brokers have stopped accepting mainland residents, you can still open an account as long as your phone's location is in Hong Kong.

• Register with your own mainland phone number

When opening the account, you must enter the phone number you normally use, because verification SMS codes will be required for every deposit and withdrawal later. You can enable international roaming to receive SMS before you travel to Hong Kong.

#Depositing funds

Once your account is open, you can start buying stocks! Link your Hong Kong bank account in the brokerage to deposit funds. Transfer funds from a bank account in the same account name, and the deposit usually completes in about 2-3 business days.

#FAQ

• Can I open an account if I cannot physically go to Hong Kong?

Opening an account requires your location to be set to "Hong Kong, China." Beyond that, you can install a location-spoofing app (such as Fake GPS) on your phone. Then turn on developer options on Android, and you can use the app to simulate your location.

Set the location to Hong Kong, and then open the account. Some people have reported that this method worked.