How to Start Investing in Tencent Stock: Complete Guide to All Channels and Steps

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If you want to start investing in Tencent stock, you can think about it from two main approaches: “direct purchase” and “indirect investment.” These two ideas correspond to three mainstream investment channels: domestic brokerage sub-brokerage (complex order), overseas brokerages, and Taiwan-listed ETFs.

This is a practical guide that starts from zero. Our goal is to help you find the option that best fits you and successfully take your first step into investing.

Key Takeaways

• There are three main ways to invest in Tencent stock: domestic brokerage sub-brokerage, overseas brokerages, and Taiwan-listed ETFs.
• Domestic sub-brokerage is convenient but has higher fees; overseas brokerages offer low fees but require more complex account opening and funding.
• Taiwan ETFs are perfect for beginners and small investors, provide diversification, but do not allow precise exposure to Tencent alone.
• When choosing a channel, consider trading frequency, capital size, and sensitivity to fees.
• Before investing in Tencent, understand policy risks and use tools to track market movements and read analyst reports.

The Three Main Channels for Investing in Tencent Stock

After understanding the two major directions of “direct purchase” and “indirect investment,” we will now dive deep into the specific operations, advantages, and disadvantages of the three mainstream channels. You can choose the path that best matches your capital size, trading frequency, and risk preference.

Channel 1: Domestic Brokerage Sub-Brokerage (Complex Order)

Sub-brokerage (complex order) is the easiest entry method to understand. You can think of it as asking your familiar Taiwan brokerage to act as your “overseas purchasing agent.”

The entire process is very straightforward:

1. You place an order in your usual Taiwan stock brokerage app, specifying that you want to buy Tencent on the Hong Kong Stock Exchange.
2. After your Taiwan brokerage receives the order, it delegates the trade to their partner brokerage in Hong Kong.

In simple terms, you only deal with your Taiwan brokerage—all the complicated cross-border execution is handled by them.

Advantages:

• Convenient operation: Use the Taiwan stock app or software you already know, with a friendly interface and no need to adapt to something new.
• Fund safety: Money stays in your Taiwan bank account—no need to handle overseas wire transfers or currency exchange hassles.
• Smooth communication: Account managers and customer service are all Taiwanese, so you can get instant help in Chinese.

Disadvantages:

• Higher fees: Because it’s a two-layer delegation, fees are usually much higher than trading directly overseas. Most brokerages have a minimum fee (e.g., HK$100 per trade), making it costly for small investors.
• Lower trading flexibility: Available products may be limited, and some brokerages don’t support pre-market or after-hours trading.

This channel is best for investors who don’t want to deal with overseas account opening and wiring, trade infrequently, and make larger individual investments.

Channel 2: Overseas Brokerages (Hong Kong Brokerages)

If you are an active trader and very cost-sensitive, opening an account directly with an overseas (especially Hong Kong) brokerage will be your top choice.

Most Hong Kong brokerages accept non-resident accounts, meaning Taiwanese investors can apply online to trade Hong Kong stocks. Well-known options that include Taiwan in their online services include Boom Securities and Phillip Securities.

Advantages:

• Highly competitive fees: This is the biggest attraction. Trading costs usually consist of only two parts:
  • Brokerage commission: Extremely low (sometimes as low as 0.03% of the trade value) plus platform fees.
  • Exchange and government fees: Fixed costs including HKEX trading fees, SFC levy, and the largest component—stamp duty (currently 0.1% of trade value).
• Full trading functionality: Professional charting software, richer order types (e.g., conditional orders), and extended trading hours.

Disadvantages:

• More complicated account opening and funding: You need to prepare a passport, proof of address, etc., for online verification. Most importantly, you must use international wire transfer to fund the account, which incurs bank wire fees and possible intermediary bank charges.
• Cross-border fund management: Once wired out, funds are governed by local regulations; repatriating money to Taiwan later also requires procedures.
• Higher communication cost: Although many offer Chinese support, it may not be as instant as local Taiwan brokerages.

Tip: To solve the cumbersome traditional wire transfer issue, some new fintech apps provide faster currency exchange and funding channels that can simplify the process.

In summary, overseas brokerages suit active traders who are fee-sensitive and willing to spend time learning the account opening and funding process.

Channel 3: Indirect Investment via Taiwan-Listed ETFs

If you are a complete beginner or just want the simplest way to participate in Tencent’s growth, buying a Taiwan-listed ETF that holds Tencent is the ideal choice.

This method does not buy Tencent shares directly—instead, you buy a “packaged” fund where Tencent is just one of the holdings. You only need a regular Taiwan stock account and can trade these ETFs during market hours just like TSMC or MediaTek.

Several Taiwan-listed ETFs that include Tencent focus on technology, electric vehicles, or China themes, such as:

• Fubon Future Vehicle (00895)
• Cathay Sustainable EV (00893)
• CTBC China High Dividend (00882)

Advantages:

• Extremely simple: Trade with your Taiwan stock account; low entry threshold—one share costs just a few thousand to tens of thousands of TWD.
• Risk diversification: You invest in a basket of companies, so Tencent’s price swings have diluted impact on the ETF’s NAV, significantly lowering single-stock risk.

Disadvantages:

• No precise exposure: You cannot hold Tencent alone; ETF performance is affected by all constituents. When Tencent surges, your gains may be dragged down by underperforming holdings.
• Limited weighting: Tencent’s weight in these ETFs is usually modest, so you don’t fully capture its upside.
• Ongoing fees: ETFs charge annual management and custodian fees deducted directly from NAV.

This channel is perfect for beginners, small-capital investors, or those who want trend exposure without single-stock volatility risk.

Full Comparison of the Three Channels

We’ve introduced the three main ways to invest in Tencent, and you might still be unsure which one fits you best. Don’t worry—the following clear comparison table lets you see the differences at a glance and provides concrete selection guidance.

Sub-Brokerage vs. Overseas Brokerage vs. ETF

To help you quickly grasp the core features of each channel, we compare them across key dimensions like target users, fees, and convenience.

How to Choose Based on Your Needs?

After seeing the comparison table, you should have a preliminary idea. Here are direct recommendations based on different profiles.

• If you are a beginner, have limited capital, or don’t want single-stock risk

Top Recommendation: Start with Taiwan ETFs.

This is the simplest and lowest-risk entry method. You avoid complicated overseas account opening and single-stock downside risk. With a small amount, you gain exposure to Tencent plus many other strong companies—perfect for learning investing and feeling the market while staying safe.

• If you value convenience, don’t want overseas wiring, and trade infrequently

Top Recommendation: Use domestic sub-brokerage.

For you, time and ease are worth far more than saving a little on fees. Sub-brokerage lets you trade in your most familiar environment with funds staying safely in Taiwan banks. Though fees are higher, if you only trade a few times a year, the peace of mind is absolutely worth it.

• If you trade actively and are very cost-conscious

Top Recommendation: Open an overseas brokerage account directly.

For frequent traders, fees are a major profit factor. Overseas (especially online) brokerages offer dramatically lower costs.

As shown above, direct purchase of Tencent stock through platforms like MooMoo or Tiger Brokers costs only around HK＄15-18 minimum, while traditional sub-brokerage can reach HK$100—a huge difference.

Additionally, professional platforms like Interactive Brokers (IB) provide powerful tools, lower margin rates, and broad market access—your best weapons for the trading battlefield.

In short, choosing an overseas brokerage means paying higher upfront learning cost (researching opening and wiring) in exchange for long-term lower fees and professional tools.

After this analysis, you should now be able to pick the channel that fits you best.

Account Opening and Funding Guide for Direct Purchase

Once you’ve chosen a direct purchase channel, the next step is actually opening the account and funding it. This section provides clear step-by-step guides for both “sub-brokerage” and “overseas brokerage” so you can complete all preparations smoothly.

Sub-Brokerage Account Application Steps

Using domestic sub-brokerage is the simplest because you’ve likely already done most of the groundwork. The whole process usually takes less than 10 minutes.

1. Contact your existing Taiwan brokerage: First confirm whether your regular brokerage offers Hong Kong stock sub-brokerage. Most large Taiwan brokerages do.
2. Sign the agreement: Sign the “Foreign Securities Sub-Brokerage Account Agreement” online or in person. This mainly informs you of overseas investment risks.
3. Wait for activation: After review, the brokerage usually activates your sub-brokerage permissions within 1-3 business days.

Biggest advantage: No need for a new bank account or overseas wires. Settlement uses your existing Taiwan stock settlement account—everything stays familiar.

Overseas Brokerage Online Account Opening Process

Although overseas brokerages have slightly more steps, most have greatly simplified the process. It can be divided into “online account opening” and “funding” stages.

Stage 1: Online Account Opening

1. Prepare identity documents: You need your ID card and passport, plus a proof of address issued within the last three months (e.g., utility bill or bank statement).
2. Fill out the online application: Go to the brokerage website and enter personal details, financial situation, and investment experience.
3. Upload documents and verify identity: Follow the system to upload photos of your documents and possibly complete facial recognition via phone for KYC.

Stage 2: Deposit Funds (Funding)

This is the key step. You must use your bank’s “international wire transfer” service to send money from your Taiwan account to the brokerage’s designated bank account.

Special reminder about international wires: Wires incur extra fees—your Taiwan bank’s remittance fee plus possible intermediary bank charges. Total cost is usually several hundred to over a thousand TWD, so it’s more suitable for larger single deposits to amortize the cost.

After wiring, upload the remittance proof in the brokerage app. Funds typically arrive in your securities account within 1-3 business days, and you can start trading.

How to Place an Order for Tencent Stock

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Once your account is open and funded, it’s time to actually place the order. Whether using sub-brokerage or an overseas brokerage, the logic is very similar. Here’s the complete process for buying Tencent so you’ll be ready on your first trade.

Confirm the Ticker: 0700.HK

The most important step before ordering is confirming you enter the correct ticker. A wrong code could buy you a completely unrelated stock.

• Company Name: Tencent Holdings Limited
• Stock Code: 0700
• Exchange: Hong Kong Stock Exchange

Practical tip: In most brokerage platforms, to specify the Hong Kong listing, you usually enter the full code 0700.HK.

Note that Tencent is listed on different exchanges with different tickers representing different instruments. For example, the U.S. listing is an ADR, not the Hong Kong ordinary shares.

Brokerage App Order Placement Illustrated

Although each brokerage app looks slightly different, the core order steps are almost identical. Follow these four steps:

1. Search for the stock: Open your brokerage app and type 0700 or Tencent in the search bar.
2. Enter the trading page: Click the result, go to Tencent’s quote page, then tap “Buy” or “Trade.”
3. Fill out the order ticket: This is the most critical step. Set your “price” and “quantity.”
   • Order types: You’ll see several options. Beginners most commonly use “limit order” and “market order.”
   • Limit order: Specify the highest price you’re willing to pay. The order only executes at or below your price.
   • Market order: Executes immediately at the best current market price.
   • Quantity: Hong Kong stocks trade in board lots. Tencent’s current lot size is 100 shares, so your order must be a multiple of 100 (e.g., 100, 200, 1,000 shares).
4. Confirm and submit: Double-check price and quantity, then send the order.

Beginner advice: If you’re not in a rush, prefer “limit orders.” They help control your purchase cost and avoid overpaying due to sudden price jumps.

Risk Assessment and Useful Tools Before Investing

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Successfully opening an account and buying shares is just the beginning. To make smarter decisions, you also need to assess risks and use tools to stay on top of market changes. Here are key points you must know before investing.

Understand the Potential Risks of Single-Stock Investing

Single-stock investing offers high potential returns but also concentrated risk. For Tencent, policy uncertainty is especially critical and often the main driver of its share price.

Policy risk is an unavoidable factor when investing in Chinese companies. Any new regulation can directly impact operations and profitability.

Major regulatory pressures come from:

• Internet sector regulation: Antitrust scrutiny of platform economies.
• Gaming regulation: Restrictions on minors’ playtime and game license approvals.
• Fintech regulation: Strict rules on payment and financial businesses.

Additionally, international politics can create risk. For example, the U.S. Department of Defense once added Tencent to certain lists, escalating geopolitical tension and negatively affecting the stock price.

Use Tools to Track Market Movements

Markets change instantly—you need reliable tools for real-time quotes and news. Many mobile apps provide free Hong Kong stock real-time quotes and news alerts to keep you updated on Tencent (0700.HK).

Here are some highly rated tools (source):

Pick one you like, set price alerts and news notifications for Tencent, and you won’t miss any major developments.

The Importance of Reading Analyst Reports

Besides your own research, refer to professional reports. Major investment banks like Morgan Stanley and Goldman Sachs regularly publish in-depth Tencent research.

When reading reports, focus on two metrics:

1. Target price: The price analysts believe the stock should reach in the coming period.
2. Valuation metrics: Especially P/E ratio.

Pro tip: When analyzing Tencent, many experts focus on “core P/E.” This excludes gains from equity investments and better reflects core business profitability—often a better valuation reference than traditional P/E.

By reading reports, you learn how professionals evaluate a company and can cross-check their views with your own judgment for a more complete investment perspective.

In summary, the journey to investing in Tencent stock boils down to three core steps: choose your channel, open and fund the account, and place the trade.

For beginners or small investors, starting with ETFs offers diversification, though returns may lag—some China tech ETFs have delivered negative 5-year returns. If you decide to hold the stock directly, after weighing sub-brokerage vs. overseas brokerage, note that the current analyst consensus rating remains Buy.

Do your homework, assess risks, and you’ll be ready to take your first confident step into investing.

FAQ

Do I need to pay tax when trading Hong Kong stocks?

Taiwanese investors currently enjoy capital gains tax exemption on Hong Kong stocks. However, if you receive Tencent dividends, a 10% withholding tax applies. This is automatically deducted by the brokerage before you receive the dividend.

How many shares are in one lot of Tencent stock?

Hong Kong stocks trade in board lots. Tencent Holdings (0700.HK) currently has a board lot size of 100 shares. Your order quantity must be a multiple of 100 (e.g., 100, 200, or 1,000 shares).

What’s the difference between U.S.-listed TCEHY and Hong Kong-listed 0700?

0700.HK is Tencent’s ordinary shares listed in Hong Kong. TCEHY is the American Depositary Receipt (ADR) issued in the U.S., representing a certain number of ordinary shares. Prices move together, but they trade on different markets and in different currencies.

If I don’t want to convert to HKD, can I invest in TWD?

Yes, you have two options:

1. Domestic sub-brokerage: The brokerage automatically handles currency conversion and deducts from your TWD account.
2. Taiwan ETF: Buy a Tencent-holding ETF directly in TWD—no currency conversion needed.