# Bull Market Arrives, Hong Kong Stocks Soar: How to Open an Account for Trading Hong Kong Stocks? W

The recent performance of Hong Kong stocks can be described as “once in a century.” A grand bull market is unfolding in the Hong Kong stock market with fervor, and the number of account openings and trading volumes are showing an astonishing surge. Numerous young investors are flocking to the stock market like a tidal wave, keeping brokers extremely busy.

The booming state of Hong Kong stocks is evident from market data alone. On October 2nd, the Hang Seng Index in Hong Kong closed with a significant increase of 6.2%, while the Hang Seng Tech Index took the lead with an 8.53% increase. The increase in the Southern K-Board 50 was even more eye-catching, closing up by 28%, with an intraday increase of 128%.

Analysis of the Reasons Behind the Surge in Hong Kong Stocks

There are many deep-seated reasons behind all of this.

Firstly, a series of policies from mainland China have played a key leading role. China’s “policy package” is like a spring breeze, revitalizing the capital market. This has led to a large number of A-shares hitting their upper limits, attracting a huge influx of southbound capital into the Hong Kong stock market. This capital flow has injected a strong impetus into the Hong Kong stock market, pushing stock prices higher and higher.

From a macro perspective of the global financial landscape, the Chinese market has become the focus of global investors. The interest of global investors in markets such as South Korea and India is gradually diminishing, while the Chinese market is the sole focus at present. This phenomenon reflects the increasing influence of China’s economy and the attractiveness of China’s capital market.

At the same time, the coordinated effects of the Federal Reserve’s interest rate cuts and China’s stimulus policies have created a highly favorable environment for the bull market in Hong Kong stocks. The Federal Reserve’s interest rate cuts have had a profound impact on the global asset landscape. As the Federal Reserve cuts interest rates, international capital begins to look for new investment directions, and capital seeking higher returns starts to flow into various markets around the world, making the Hong Kong stock market a favored destination.

In addition, the appreciation of the Chinese yuan has also added fuel to the rise in Hong Kong stocks. After the Federal Reserve started its interest rate cut cycle, the US dollar weakened, and the Chinese yuan, in contrast, began to strengthen. This change in exchange rates has a positive driving effect on China’s stock market, and as an important part of China’s stock market, Hong Kong stocks have inevitably been influenced by this positive factor.

In the midst of this bull market feast in Hong Kong stocks, Hong Kong brokers have ushered in a peak period for their business. The heat of the market has led to an explosive increase in the business volume of brokers, even causing systems to be overwhelmed at times. According to Hong Kong media reports, some brokers and banks’ systems have experienced overload due to the large volume of business, causing difficulties for customers when logging into mobile applications.

Hong Kong Stock Account Opening Guide: In-Depth Broker Reviews and Domestic Account Opening Methods

With the Hong Kong stock market being so hot, many people are eager to try their hand at it and want to open an account. However, due to some restrictions and thresholds, they may not know how to proceed.

Next, I will provide an in-depth review of three broker platforms and detail the relevant account opening procedures. It should be emphasized that I will maintain a fair and impartial attitude, comprehensively introducing the strengths and weaknesses of each broker. The specific choice still needs to be made by investors based on their actual situation.

Tiger Brokers

Convenient Account Opening: Tiger Brokers has a convenient account opening process. Its account opening process is designed to be simple and clear, which can be completed relatively quickly by investors who are familiar with online operations and have some investment experience, saving a lot of time and effort.

Rich Product Variety: The broker offers a wide range of financial products. Whether it’s various stocks in the Hong Kong stock market or other financial derivatives such as warrants and bull/bear certificates, it even covers some fund products related to Hong Kong stocks. This rich product variety can meet the diversified investment needs of different investors, whether conservative investors seeking stable dividend returns or aggressive investors pursuing high-risk, high-return investment opportunities, they can find suitable investment products on Tiger Brokers.

Low Trading Commissions: Tiger Brokers’ trading commissions are relatively low, which is an important advantage in attracting investors. Lower commissions mean that investors need to pay relatively less cost in each transaction. For example, in the case of frequent trading, low commissions can allow investors to accumulate more actual returns in the long-term investment process, rather than eroding too much profit due to high commissions.

Free Real-Time Market Data: Providing investors with free real-time market data is a valuable service. Real-time market data is like the eyes of investors in the financial market, allowing them to grasp the fluctuations in stock prices, market buying and selling trends, and changes in trading volume in a timely manner. With this information, investors can make more accurate judgments on market trends, adjust their investment strategies in a timely manner, and thus improve the accuracy of investment decisions.

$3,000 Minimum Deposit Threshold: However, Tiger Brokers has set a minimum deposit threshold of $3,000. This rule may form a certain restriction for some investors with smaller capital. If investors have limited initial investment funds, they may need to accumulate enough funds to meet the account opening requirements. Investors need to consider this carefully based on their own financial situation when choosing to open an account with Tiger Brokers.

Mainland China Individuals Cannot Open Accounts: Due to policy restrictions, mainland China individuals are currently unable to directly open accounts with Tiger Brokers, which is something investors need to pay special attention to.

Futu Securities

Simple Account Opening: Futu Securities has designed a relatively simple account opening process. The entire account opening process is clear and the operation interface is friendly, making it easy for novice investors to get started. Even investors without much investment experience can complete the account opening operation in a relatively short time and smoothly enter the Hong Kong stock investment market.

Rich Product Variety: It also offers a rich variety of financial products, covering most of the stocks in the Hong Kong stock market and related financial derivatives. This rich product supply provides investors with a broad investment choice space, whether it’s large-cap blue-chip stocks or emerging growth stocks, investors can choose according to their investment preferences.

Trading Commissions Slightly Higher Than Tiger: Futu Securities’ trading commissions are slightly higher than those of Tiger Brokers, but they are still within the acceptable and reasonable range in the market. Although slightly higher commissions may affect investors’ trading costs to some extent, the other services and advantages of Futu Securities are also worth considering comprehensively.

Free Real-Time Market Data: It also provides investors with free real-time market data services. Investors can obtain real-time market information of the Hong Kong stock market through the platform of Futu Securities, thereby better grasping market dynamics and making reasonable investment decisions.

HKD 20,000 Minimum Deposit Threshold: Futu Securities has set a minimum deposit threshold of HKD 20,000, which is relatively high. For investors with limited capital, they may need to invest more funds to meet the account opening requirements, which to some extent restricts the choices of some small capital investors.

Mainland China Individuals Cannot Open Accounts: Like Tiger Brokers, affected by policy, mainland China individuals cannot currently register and open accounts with Futu Securities.

However, it should be emphasized that due to the adjustment of relevant policies, the above two brokers can no longer carry out incremental business and no longer support the registration of new users from mainland China, and their APP has also been removed from the mainland China app market.

However, for investors who still wish to invest in Hong Kong stocks, there is not no way out. They can choose to open institutional accounts in the name of a company. It should be noted here that personal names are not allowed. In fact, applying for a Hong Kong institution is not as difficult as imagined.

If you want to open an institutional account, you generally need to provide the following information:

Company Registration and Operating Area: Clearly provide the company’s registration location and operating scope, which helps brokers to understand and assess the basic situation and risks of the company.

Company Name: Accurately provide the company’s name information, which is a basic requirement in the account opening process.

Company Type: It is necessary to indicate whether it is a general company, partnership fund, or other types. Different types of companies may have some differences in account opening and trading rules.

Account Opening Purpose and Trading Product Requirements: Clearly state the purpose of opening the account, such as long-term investment or short-term speculation, and also specify the types of products you want to trade. This helps brokers to provide services that better meet the needs of customers.

Whether There is an Overseas Bank Account: This information is very important for the flow and management of funds. Brokers need to understand the company’s situation regarding overseas bank accounts.

Account Asset Scale: Inform the broker of the estimated asset scale of the account, which has a certain reference value for brokers to understand the customer’s financial strength and risk tolerance.

Contact Name, Email, and Phone: Provide contact information that is easy to contact, so that brokers can get in touch with customers in a timely manner during the account opening process and subsequent service process.

Remarks: If there are other special circumstances or matters that need to be explained, they can be listed in detail in the remarks.

In addition, in addition to traditional brokers that can trade Hong Kong stocks, there are also some emerging wallet brokers that support the trading and investment of Hong Kong stocks, and there is no account opening threshold issue. The following BiyaPay is such a broker.

BiyaPay Wallet Broker

Convenient Account Opening, Easy to Open, Simple and User-Friendly: BiyaPay performs well in terms of account opening convenience. Its account opening process is extremely simple, and the operation is easy, just like using a daily mobile application. For investors who want to quickly enter the Hong Kong stock market, especially novice investors, this account opening experience is very friendly.

Zero Threshold, No Capital Requirements: This is a significant advantage of BiyaPay. There is no minimum deposit threshold, which means that no matter the size of the investor’s capital, even small capital investors can easily open an account with BiyaPay for Hong Kong stock investment. This zero-threshold setting provides more investors with the opportunity to participate in Hong Kong stock investment, greatly reducing the entry threshold for investment.

Rich Product Variety, One Account, Can Trade Hong Kong Stocks, US Stocks, etc.: BiyaPay offers a rich variety of investment products, and one account can trade Hong Kong stocks, US stocks, and other stocks at the same time. This function brings great convenience to investors. Investors do not need to open multiple accounts with different brokers to easily achieve diversified investment layout across markets, effectively diversifying investment risks.

No Need for Offshore Accounts, Support for Direct Trading of US and Hong Kong Stocks with Digital Currency: The unique feature of BiyaPay is that investors do not need to open offshore accounts, and it supports direct trading of US and Hong Kong stocks with digital currency. This provides investors with a new and convenient way of trading, especially for those familiar with digital currency and wish to use digital currency for stock investment, which is very attractive.

Support for ACH Deposits into Charles Schwab, Same-Day Transfer and Arrival: In terms of capital deposits, BiyaPay supports ACH deposits into Charles Schwab and can achieve efficient capital turnover with same-day transfers and arrivals. This fast capital account service allows investors to grasp investment opportunities more timely and improve the efficiency of capital use.

Real-Time In and Out of Funds: BiyaPay provides real-time in and out of funds, which provides great flexibility for investors’ funds. Investors can withdraw funds in time when needed or deposit funds quickly when investment opportunities are found, thus better responding to market fluctuations and flexibly adjusting their investment strategies.

Many novices want to invest in Hong Kong stocks and don’t know where to start. They can refer to the three brokers I listed above and choose one that suits them to open an account. If possible, my suggestion is to open all of them, which will make the capital operation much smoother.

Outlook for the Subsequent Hong Kong Stock Market

Amid the prosperous scene of the Hong Kong stock market, many investors are concerned about how far this wave of the market can go. Are there any effective indicators that can be used to judge potential positions? Here, the Fibonacci trend extension line is a very practical technical analysis tool.

Taking the Hang Seng Index as an example, in January 2024, the Hang Seng Index fell to a low of 14,794 points, and then the trend began to reverse, and an upward trend appeared. It rose to a phased high point in April, and then the market began to adjust and retreat, ending the retreat in August. By connecting points A, B, and C, you can get a Fibonacci trend extension line. In this trend extension line, there are several key positions, such as 38.2%, 50%, 61.8%, and 100%. Investors can use these positions to judge the potential target price of the upward trend. For example, if the price breaks through a certain percentage position, then the next position can be focused on.

However, investors need to be reminded that technical indicators are just a tool to assist in judgment. The stock market is a complex system affected by many factors, such as macroeconomic policies, international political situations, and corporate profitability. In the stock market, big ups and downs are common. Therefore, if investors want to chase high in the short term, they must set a stop loss to control risks. The stop loss mechanism is like a safety line. In case of market callback, investors can control losses through stop loss operations to avoid further expansion of losses.

The Hong Kong stock market is currently in the wave of a bull market. Whether it is opening an account for investment or paying attention to the subsequent market development, investors need to be cautious, fully understand market rules and risks, and make reasonable decisions based on their own investment goals and risk tolerance.

Summary

The Hong Kong stock market is in a bull market, which undoubtedly brings many opportunities for investors, but the risks that come with it should not be underestimated. In the key link of choosing a broker to open an account, investors must consider various factors carefully. They need to combine their own situation. If they desire a zero-threshold account opening experience, BiyaPay is a suitable choice; for those investors who have relatively abundant funds and are more sensitive to trading commissions, they need to carefully weigh the institutional account opening methods of Tiger Brokers, Futu Securities, and other brokers as well as other account opening options.

For the subsequent trend of the Hong Kong stock market, although we can use some technical analysis tools to assist in judgment, the complexity and uncertainty of the market itself determine that it is full of variables. Investors cannot rely solely on technical indicators. Many factors such as the macroeconomic situation, policy direction, and global market dynamics have a profound impact on the Hong Kong stock market. In the process of investment, controlling risks reasonably is always crucial. Whether it is by setting stop loss and profit-taking points or diversifying investment layout, these are all effective means to reduce risks and protect investment returns.

Hong Kong stock investment is like a long journey full of challenges and opportunities. I hope that every investor can continue to learn and accumulate experience in this process, make wise investment decisions, and ultimately achieve their investment goals in the Hong Kong stock market. May everyone not only harvest wealth in this charming market but also improve their investment literacy and risk awareness.