Investing on the Hong Kong Stock Exchange: Why, How and For Whom

Are you interested in investing, but you're always looking for the same stocks, the same news? Why not look outside? For a little bit of diversity, it's important to realize that there are always other exchanges than the US. Today I want to talk about Hong Kong Stock Exchange (HKEX)I think it can be both a safe and interesting option for young investors among foreign exchanges.

In this article "How to invest on the Hong Kong Stock Exchange", "How to buy stocks abroad?" we will answer frequently asked questions in a clear way. Let's get started.

What is the Name of the Hong Kong Stock Exchange?

Short answer: HKEX - Hong Kong Exchanges and Clearing Limited
This stock exchange is one of the biggest in the world. Giant companies like Alibaba, Tencent, HSBC are traded here.
Hong Kong is a financial center that serves as a bridge between the US and China. Its liquidity is high and institutional investor interest is intense.

In short: Safe, big and full of opportunities.

How to Buy Overseas Stocks?

You have several options for direct investment from Turkey to the Hong Kong Stock Exchange:

1. Through foreign brokerage houses

Interactive Brokers
Saxo Bank
Freedom Finance
Trading212

You open an account on these platforms, transfer dollars or euros. Then you can buy shares. Of course, I would like to point out that I have no organic ties with the platforms I mentioned above and I have not had the opportunity to test these platforms yet.

Which shares can be bought? Industry leaders such as Tencent, Alibaba, Meituan, CLP Holdings and many other companies with high future potential are listed on this stock exchange.

2. Indirect investment with ETF

There are ETFs (exchange-traded funds) that can be bought on the US stock market.
These include Hong Kong stocks. For example:

iShares MSCI Hong Kong ETF (EWH)
KraneShares China Internet ETF (KWEB)

By buying these funds, you are indirectly entering the Hong Kong market.

3. With Turkish brokerage houses

Some Turkish banks provide overseas investment services.
However, transaction fees can be high and share diversification limited.

Which Country Has the Best Stock Exchange?

The definition of "best" depends on what the investor is looking for.

Short-term excitement? BIST is more volatile.
Long-term confidence? The US and Hong Kong stand out.
Dividend income? European and Hong Kong banks are attractive.

Hong Kongwith low currency risk, high liquidity and strong dividend-paying companies long-term investors for a good choice. Personally, I plan to include this exchange in part of my basket.

When Does the Hong Kong Stock Exchange Open?

Hong Kong Stock Exchange (HKEX)Turkey time:

Morning 04:30 - 07:00 first session between
Breakfast break (LUNCH!)
Followed by 08:00 - 11:00 second session between

So the stock market opens before you wake up.
But don't worry, you can give your orders at night and see the result in the morning.

Advantages of Investing on the Hong Kong Stock Exchange

No capital gains tax
Low currency risk (HKD - USD constant)
Chance to become a partner in world-renowned companies
High dividend potential
Liquidity is very highcomfortable trading

In other words, you are both a partner in a growing market and you are trading in an established market. Also, since your investment is in foreign currency, it can work as an insurance against domestic exchange rate fluctuations.

Things to Watch Out For

Share purchases are usually made on a lot basis (e.g. 100 shares)
Minimum investment amount may be high
For direct investment you need to trade on an English platform
Dividend income is taxable in Turkey

Most of these obstacles are not a problem if you proceed with the appropriate strategy.

So why stop with just the BIST?

The Hong Kong Stock Exchange offers great opportunities, especially for those who want to follow technology, the Asian market and international growth.
If you want to invest in overseas stock markets, Hong Kong is a logical first step.

It is possible to start with small investments and gain experience.
As long as you search, follow, be patient. I would like to remind you of two short posts about patience that you should always read here.