ETFs are open-ended funds that can be bought and sold on stock markets, similar to stocks. Through alternative tracking methodologies, such as full replication or synthetic replication, they can provide investors with returns that mimic the performance of their underlying assets.
On the Hong Kong Stock Exchange and other key marketplaces around the world, HSBC Broking enables ETF trading. ETFs are available for a wide range of underlying assets, including equities, commodities, and fixed income, among others.
Is it possible for me to register a Vanguard account in Hong Kong?
In August 2020, Vanguard announced its exit from the Hong Kong market. Vanguard will end its onshore operations in Hong Kong, as well as our Hong Kong ETFs, as a result of this news.
As part of this exit, all Vanguard Hong Kong ETFs have been delisted. Important information about the termination, voluntary deauthorization, and delisting of the applicable Vanguard Hong Kong ETFs can be found in the Notices tab on each product page.
How do I invest in an ETF in the United States from Hong Kong?
For traders and investors based outside of the United States, this technique of trading U.S. equities makes the most sense. The finest international brokers give their clients access to a variety of marketplaces, including stock trading in the United States.
Most international brokers not only allow you to trade in numerous markets, but they also allow you to open accounts in multiple currencies. This allows you to profit (or lose) money depending on the exchange rate of your investments. Interactive Brokers, one of the many international brokers that accept Hong Kong clients, has the lowest commissions, the most traded assets, and access to numerous exchanges around the world.
Through an Interactive Brokers account, you can buy and sell local SEHK shares, equities, commodities, exchange-traded funds, futures, options, bonds, and a variety of derivatives on more than 125 global markets. Interactive Brokers has offices in Australia, Canada, Switzerland, the United Kingdom, Hungary, Russia, Japan, India, China, and Estonia, in addition to the United States and Hong Kong.
Most of the world’s main financial regulators, notably the Securities and Futures Commission (SFC) of Hong Kong, oversee Interactive Brokers. Commissions on stock trades in the United States are $0.005 per share, with a minimum of $1 and a maximum of 1% of the transaction amount. The cost of trading options is $0.70 per contract.
Saxo Bank, Charles Schwab, and TradeStation are some foreign brokers that accept Hong Kong clients and provide you access to trade US equities. Trading through an international broker is likely to have the lowest commissions, though keep in mind that Interactive Brokers’ minimum deposit is $10,000, while Schwab’s international account requires a deposit of $25,000 to open. In addition, Interactive Brokers imposes an inactivity fee for accounts that are inactive.
Vanguard is available to non-US nationals.
Each of the investment products and services mentioned on this website is intended for use by residents of the United States. This website is not intended to be a solicitation or offer for any investment product or service in any jurisdiction where such solicitation or offer would be illegal. International visitors are encouraged to visit Vanguard’s Global Investors site for further information on the goods and services available to them.
Is it possible to buy ETFs with HSBC?
We are ideally positioned to fulfill our clients’ ever-changing investment demands as a genuinely global organization with local knowledge. HSBC Asset Management offers a wide range of exchange-traded funds (ETFs) that provide low-cost access to some of the world’s most popular indices. Our ETFs combine our expertise in emerging markets, commitment to sustainable investing, and belief that theme investing is becoming an increasingly important element of the investment landscape.
Is there a Vanguard in Hong Kong?
This follows its announcement in August of last year that it would be departing Hong Kong to focus on the mainland.
At the time, the company stated that it would either select a new ETF management or fire the current one.
“Having taken into account factors deemed by the manager to be relevant, including but not limited to, the manager’s publicly stated intention to implement an orderly exit from its exchange traded funds business in Hong Kong and the exhaustion of a process to identify a new investment manager, the manager is of the view that the proposed termination of the trust and the sub-funds would be in the best interests of the unith,” Vanguard said in a notice to shareholders.
The last trading day for Vanguard’s six Hong Kong-listed ETFs, which have a combined asset value of HK$576.1 million (£53.9 million, $74.1 million, 62.3 million), will be May 10th, according to the notification.
The asset manager will repay investors with cash proceeds, which are likely to be distributed on or around July 16 this year, according to the statement.
Details
In 2012, Vanguard gained the necessary licenses to operate in Hong Kong, and in 2013, it debuted its first Hong Kong-listed ETF.
In addition, the firm’s intentions to open a mutual fund management company in China have been postponed. Instead, it will concentrate on its Ant Group-led investment advising joint venture.
In December 2019, it formed a joint venture with Ant Group, which launched an investment advisory platform in April 2020. The platform has gained over 500,000 users by the end of last year.
Is a Vanguard China ETF available?
“They’ve never done a Japan fund, even when it was one of the world’s top economies, nor a Germany fund, nor a United Kingdom fund.”
Vanguard’s China Select Stock Fund will be one of Vanguard’s most expensive offerings.
In terms of the managers’ track records, Baillie Gifford’s Sophie Earnshaw and Mike Gush have a solid track record. Since 2006, Gush has led a China Equities strategy at Baillie Gifford, and Earnshaw joined in 2013.
They have outperformed the competition “It’s been almost nonstop from the apex of the pre-global financial crisis in October 2007,” DeMaso stated. Baillie Gifford’s China Equities strategy has outperformed its benchmark by 512 percent (or 12.3 percent annually) (or 8.5 percent annually).
According to DeMaso, Wellington’s Bo Meunier has been running an Ireland-domiciled fund since the end of January 2020. Meunier’s Wellington All-China Focused Equity has returned 56.6 percent since its inception. This is slightly ahead of Baillie Gifford’s China Equities, which has gained 50.1 percent.
According to him, both funds outperformed the iShares MSCI China ETF’s 15.1 percent return.
“In its first entry into a single nation fund, Vanguard appears to have collaborated with some competent managers,” DeMaso added. “I believe the Vanguard fund will be well-received, while some investors may be wary of taking on the risks of a China-only strategy.”
Competing China-only and other fund managers, such as Jason Hsu, portfolio manager for the Rayliant Quantamental China Equity ETF, an actively managed exchange-traded fund, argue there are lots of other possibilities.
“Investors are no longer confined to passive or thematic China ETFs,” he said, referring to exchange-traded funds that monitor an index or sector while still being purchased and sold like a stock.
In terms of Vanguard’s timing: “China is going through an exciting period. Investors are concerned that it is abandoning capitalism, which is a valid concern, according to Hsu. “Interventions, however, do occur. It isn’t limited to China. Because valuations are so cheap right now, you are paid to take risks.”
Perth Tolle, whose Alpha Architect ETF Trust invests in emerging countries, is currently excluding China from the fund due to environmental, social, and corporate governance (ESG) issues including as human rights violations and a lack of personal liberty. Tolle is the index provider and sponsor, while Alpha Architect in Horsham manages the fund.
“Most investors care about shareholder value, which is being eroded in China due to high levels of corruption and a government that is becoming less business-friendly, according to Tolle. “We’ve witnessed huge GDP growth over the last 30 or 40 years, but the China stock market index has only returned 2.2 percent on average over that time.”
The FRDM exchange-traded fund uses third-party quantitative personal and economic freedom criteria produced by the Cato Institute and others to create a freedom-weighted emerging markets equities strategy.
“Many other emerging markets have a higher level of value capture than China, where corporations are free to prioritize shareholder interests over governmental interests. And we’re not willing to miss out on those chances by concentrating our risk on China, where a government that is becoming increasingly capricious is regularly interfering with private market activities,” Tolle added.
Is it possible to buy US equities from Hong Kong?
Yes, you are entitled to open a US stock trading account as long as you can present the needed paperwork. To open an account with Sofi Hong Kong, for example, you must produce the following documents: a duplicate of your passport