Hong Kong Stocks

Overview

The economy of Hong Kong is externally oriented, as known as an international financial centre and the stock trading market is matured. The majority of Hong Kong listed companies are from Europe, the United States and mainland China. Mainland China’s rapid economic growth comes along with more enterprises choose to be listed in Hong Kong. With the strong backing of the motherland and the connection with international community, increasing portion of state-owned enterprises and private-owned enterprises diversified the development of Hong Kong stock market.

The benchmark Hang Seng Index is composed of 50 constituent stocks, representing about 61% of total market value coverage in Hong Kong. The constituents stocks are grouped under different sectors such as Finance, Telecommunications, Properties, Utilities and so forth, contributing more than 46% of daily aggregate market turnover. Apart from stocks of listed enterprises, there are also different kinds of securities available for trading such as warrants, Callable Bull/Bear Contracts (CBBC), Exchange-traded Funds (ETFs) and Real Estate Investment Trusts (REITs).

You are able to trade HK Stocks, subscribe IPO stocks and trade on margin through China Goldjoy Securities. In addition to providing cash accounts, we also provide margin accounts greatly increasing the flexibility of your funds

China Goldjoy Securities
9 Major advantages on trading Hong Kong stocks

 Member of the main board listed company, China Goldjoy Group Limited(Stock code:1282)and is strong and robust.
 Established as early as 1999, has a long history and outstanding reputation
 Transactions on online or mobile trading platform without any delays.
 New Clients enjoy special commission rate for trading on Hong Kong Stocks, only cost 0.05% or minimum HK$50.
 The annual interest rate of new margin account clients only as low as 2.88%p.a.
 Multi-functional mobile trading platform is easy – to – use.
 Investors could receive daily global market news and investment commentaries from our Weibo and Facebook Page.
 Awarded the 2017 Securities Services Award and various Asset Management Award
 Organise various free investment seminars regularly.

*Terms and conditions apply. For details, please click here.

Cash Account

You can settle in full cash and the settlement is on the second day after the trading day(on T+2 basis).

Online cash account

You may give buy and sell orders via the internet / mobile trading system, but pay attention to the deposited fund or stock must be sufficient to issue a buy or sell order. After the stock sell order is executed, the money that has been paid will be immediately available for other stock trading purposes.

Margin account

Our Margin Trading Service may provide additional funding to you to maximize your buying power and flexibility of your securities account. It helps you grasp investment opportunities in the securities market. The credit facility is secured against the purchased securities or other securities held in your margin account as collateral.

HK stocks are stocks listed on the Main Board and the Growth Enterprise Market (GEM) Board of Hong Kong Exchanges and Clearing Limited (HKEx). They can be categorized into blue chips, red chips, H shares and other stock.

Hong Kong Stock Trading Hours

Time Session
09:00am-09:30am Pre-opening Session
09:30am-12:00pm Morning Session
12:00pm-01:00pm Extended Morning Session
01:00pm-04:00pm Afternoon Session
04:00pm-04:10pm Closing Auction Session

Also,The settlement day is the second business day (T + 2) of the trading day in the Hong Kong Stock Market, HKEx also allows buying and selling the same stock in the same day.

At the same time, there are no up-limit and down-limit in Hong Kong Stock Market.

Callable Bull / Bear Contracts(CBBCs)

Like derivative warrants, CBBC are structured products. They are leveraged investments that track the performance of the underlying assets without requiring investors to pay the full price required to own the actual assets. CBBC may be issued with a lifespan of three months to five years and are settled in cash only. CBBC are issued with the condition that during their lifespan they will be called by the issuers when the price of the underlying assets reaches a level (known as the Call Price) specified in the listing document. If the Call Price is reached before expiry, the CBBC will expire early and the trading of that CBBC will be terminated immediately. The specified expiry date from the listing document will no longer be valid.

What are the features of CBBC?

CBBC can be divided into two categories: Bull Contracts and Bear Contracts. If investors take bullish position on the underlying asset, then choose Bull Contracts; if you take a bearish position, you can choose Bear Contracts.CBBC have a mandatory call mechanism, that is, if the underlying asset’s prices reach the call price, the issuer must then call the CBBC. The residual value depends on the categories of CBBC, which are namely category N CBBC and category R CBBC.

  1. Category N CBBC refers to a CBBC where its Call Price is equal to its strike price, and the CBBC holder will not receive any cash payment once the price of the underlying assets reach or go beyond the Call Price.
  2. Category R CBBC refers to a CBBC where its Call Price is different from its strike price, and the CBBC holder may receive a small cash payment (called “residual value”) upon the occurrence of an MCE but in the worst case, no residual value will be paid (Category N CBBC do not have residue value).

Warrants

Warrants are an instrument which gives investors the right – but not the obligation – to buy or sell the underlying asset (e.g. a stock) at a pre-set price on or before a specified date.

Warrants can be divided into two categories: subscription warrants and derivative warrants.

Subscription warrants are issued by a listed company and give holders the rights to buy the underlying shares of the company. They are either attached to new shares sold in initial public offerings, or distributed together with declared dividends, bonus shares or rights issues. Subscription warrants are valid between 1 and 5 years. Upon exercise, the underlying company will issue new shares and deliver them to the warrant holders.
Derivative warrants are issued by financial institutions. Unlike subscription warrants which must be call warrants, derivative warrants can be call or put warrants. Most of the derivative warrants in the market have a shorter life, ranging from 6 months to 2 years normally, although the current Listing Rules allow a maximum life of 5 years.

What are Call Warrants and Put Warrants?

Holders of call warrants have the right, but not obligation, to purchase from the warrant issuer a given amount of the underlying asset at the exercise price within a certain time period.Conversely, holders of put warrants have the right, but not obligation, to sell to the warrant issuer a given amount of the underlying asset at the exercise price within a certain time period.Derivative warrants are “exercised” when holders use their rights to purchase or sell the underlying assets. In Hong Kong derivative warrants are usually settled in cash when they are exercised at expiry dates.

Exchange Traded Funds (ETFs) are passively-managed and open-ended funds, which are traded on the securities market of Hong Kong Exchanges and Clearing Limited (HKEx). All listed ETFs are authorised by the Securities and Futures Commission (SFC) as collective investment schemes. ETFs are designed to track the performance of their underlying benchmarks (e.g. an index, a commodity such as gold, etc) and offer investors an efficient way to obtain cost-effective exposure to a wide range of underlying market themes. Similar to other securities, investors can buy or sell ETFs through their brokers anytime during the securities market’s trading hours.

ETF can be divided into two categories:

 Physical ETFs (i.e. traditional or in-specie ETFs)

Many of these ETFs directly buy all the assets needed to replicate the composition and weighting of their benchmark (e.g. constituents of a stock index). However, some only buy a portion of the assets needed to replicate the benchmark or assets which have a high degree of correlation with the underlying benchmark but are not part of it. Some physical ETFs with underlying equity-based indices may also invest partially in futures and options contracts. Investors should read the ETF prospectus carefully to ensure they understand how the fund operates.

 Synthetic ETFs

These ETFs do not buy the assets in their benchmark. Instead, they typically invest in financial derivative instruments to replicate the benchmark’s performance. The ETFs are required to be fully collateralized when investing in derivatives (details of the net and gross counterparty exposure and types and composition of the collateral are published on the ETF’s website). Investors should read the ETF prospectus carefully to ensure they understand how the fund operates.

ETF features

1. Benchmark tracking
ETFs are passively managed funds which aim to track closely the performance of the underlying benchmarks.

2. Transparency
Each ETF has its own website operated by its ETF manager (a list of ETFs’ websites can be found on the HKEx website). ETFs’ websites provide key information such as the underlying benchmarks and the benchmarks’ constituents, the ETF’s Net Asset Value (NAV), the counterparty exposure and details of collateral from counterparties. The NAV of an ETF is the sum of marked-to-market values of the individual portfolio holdings plus the portion of the assets held in cash and cash equivalents, less all the accrued ETF expenses. The NAVs of ETFs are calculated intra-day during the trading hours and at the end of the trading day. The intra-day estimated NAVs, or iNAVs, are also known as RUPVs (Reference Underlying Portfolio Value) or IOPVs (Indicative Optimised Portfolio Value). The end-of-day NAV information may also be obtained on the HKExnews website, in addition to the ETF’s website. Real-time or delayed price quotes for ETFs are disseminated by information vendors and are available on the HKEx website.

3. Low transaction costs
Unlike unlisted funds, ETFs do not charge any subscription fees. The transaction costs for trading ETFs at HKEx are the same as those for trading other securities, which include brokerage commission, transaction levy, investor compensation levy (currently suspended), trading fee, trading tariff and stamp duty (Some ETFs are exempted from stamp duty).

4. Low minimum investment
ETFs are traded in board lots and the minimum initial investment is usually set at an affordable level.

5. Liquidity
ETFs can be traded any time during the trading hours of the securities market. Listed ETFs usually have market makers, which are known as Securities Market Makers, to provide some liquidity. However, market making for the ETFs is available only during the Continuous Trading Session. The list of market makers for each ETF as well as their contact details are published on the HKEx website

6. Convenience
ETFs are traded through brokers in the same way as other securities and the settlement arrangements are the same.

7. Diversification
Most ETFs track a portfolio of assets to provide diversified exposure to selected market themes. However, ETFs may also track a single underlying asset such as gold.

8. Market exposure
While some ETFs provide Hong Kong investors access to a basket of Hong Kong securities, others provide the investors access to overseas markets or other asset classes.

China Goldjoy Securities provides various trading platforms that you can experience smooth and rapid online trading an trade via telephone, online and mobile trading systems. Commission charges vary from different products.

Hong Kong Stock Order Placement Hotline
(852) 2379 8888

iTrade Online Trading platform

Mobile Trading platform

Open an Account

We provide various ways for account opening and our licensed professional customer services managers will follow up the process personally.

booking

Online Appointment

Through an online appointment system, the Customer services manager will call to confirm your appointment to open an account, and arrange the time to provide you with personalized account opening services, and explain in detail the common instructions such as account operations, deposits and withdrawals.

Making an Appointment

mail
Mail / Free Courier Service

After completed all the steps instructed, please dial Customer services hotline at 2379 8888 to arrange the free delivery of the relevant documents to us by courier service, or you can mail the documents by yourself.

Mail / Free Courier Service