Taiwan Investment Guide to Hong Kong Stocks: Trading Rules, Investment Methods, and Stock Selection Strategies

Overview of the Hong Kong Stock Market

As an international financial center, the Hong Kong Stock Exchange (HKEX) had 2,338 main board listed companies and 314 GEM companies as of September 2025, with a total market capitalization exceeding HKD 48 trillion. Well-known companies such as Tencent, Alibaba, and BYD are listed here. For Taiwanese investors, buying Hong Kong stocks has become an important choice for diversified investment and overseas market deployment.

Core Rules of Trading Hong Kong Stocks

Before entering the market, understanding the rules of the Hong Kong stock market is crucial.

Trading Hours

HKEX has three trading sessions: Opening Auction (9:00-9:30), Continuous Trading (9:30-12:00, 13:00-16:00), and Closing Auction (16:00-16:08). Unlike Taiwan stocks, Hong Kong stocks adopt a T+0 trading model, meaning stocks bought on the same day can be sold on the same day, with a settlement cycle of T+2.

Key Trading Features

Hong Kong stocks have no price limit up or down; some large-cap stocks have market fluctuation mechanisms. The minimum trading unit is 1 lot, but the number of shares per lot is determined by the listed company, ranging from 10 shares to 100,000 shares. For example, Tencent (00700) has 1 lot of 100 shares, which differs from Taiwan’s uniform 1 lot = 1,000 shares rule.

Three Ways to Buy Hong Kong Stocks in Taiwan

Method 1: Purchasing Individual Stocks

Opening a proprietary trading account with domestic brokers is the most traditional method. Investors can choose established brokers like Yuanta, Fubon, or KGI, with fees approximately 0.01% to 1.5% higher than foreign brokers. If opening an account directly with a Hong Kong stock broker, be aware of exchange rate costs and risks.

Method 2: Investing in Indexes and ETFs

Individual stocks are volatile and risky. The Hong Kong market has three major representative indexes: Hang Seng Index (HSI), Hang Seng China Enterprises Index (HSCEI), and Hang Seng Tech Index (HSTECH). The Hang Seng Index includes 88 constituent stocks with a total market cap of HKD 30 trillion, accounting for 62% of the total Hong Kong stock market. Compared to index futures requiring a minimum of HKD 50,000, ETFs are the preferred choice for most investors. Products like the Tracker Fund (02800), and the Hang Seng Index ETF (03115) track the index’s performance, offering convenient and flexible trading.

Method 3: Contract for Difference (CFD) Trading

CFDs are suitable for short-term traders. Compared to traditional brokers, CFD trading offers advantages such as low fees (only spreads and overnight fees), flexible leverage (1-30x for individual stocks, up to 200x for indices). This method has low capital requirements and supports both long and short positions.

Main Differences Between Hong Kong and Taiwan Stocks

Hong Kong’s market is more international, with companies from 26 countries listed. Most high-quality Chinese mainland enterprises choose to list in Hong Kong. However, due to the absence of price limits, Hong Kong stocks tend to be more volatile than Taiwan stocks, so investors should manage risks accordingly.

Selected Hong Kong Stocks Suitable for Investment

Prioritize blue-chip stocks with large scale and stable operations. Here are some Hong Kong stocks with investment value:

Technology and Consumer Leaders: Tencent Holdings (00700, established 1998), a global leading internet company covering social, gaming, and cloud services; Alibaba (09988, established 1999), dominant in e-commerce and cloud computing.

Manufacturing and Energy: BYD Company (01211, established 1995), a leader in new energy vehicles; China National Offshore Oil Corporation (00883, established 1982), an important player in the energy sector.

Finance and Insurance: HSBC Holdings (00005, established 1865), a long-established financial institution; AIA Group (01299, established 1919), a major player in Asian insurance markets; Ping An Insurance (02318, established 1988), with strong comprehensive financial capabilities.

Other Quality Companies: Baidu (09888), with search and AI technology; CITIC Limited (00267), diversified and steady development.

Account Opening and Trading Process for Taiwanese Investors

Account Registration

Registering an account with CFD or brokerage platforms is relatively simple, usually requiring only an email or phone number. Most platforms offer demo accounts with virtual funds for practice. Before real trading, identity verification (KYC) is required, with documents such as ID card and proof of address.

Funding

Platforms typically support multiple deposit methods, including credit cards and e-wallets. Taiwanese investors can deposit directly in New Taiwan Dollars (NTD), avoiding additional currency conversion costs.

Searching and Placing Orders

Enter the stock name or code (e.g., “Tencent” or “0700”) in the trading platform’s search bar. After finding the relevant product, set the buy or sell direction, quantity, leverage, and stop-loss/take-profit levels to execute the order.

Investment Recommendations

When initially buying Hong Kong stocks, it is advisable to start with main board blue chips or Hang Seng Index ETFs to gradually gain market experience. Risk management is essential—set reasonable stop-loss points, avoid over-leveraging, and regularly review trading logs. These practices form the foundation of long-term, steady investment.