Investing in Hong Kong shares...

Hi buddies, sorry need some guidance here.

I wish to buy HK shares, I told my broker so, but he say I néed to do it through him. I already did the test on SIP products, why can't it be done?

What are the bokerage fees and other costs involve in buying HK shares? Does it also reflect in our CDP, or do we need a separate Acc? What are the risks?

Is there any restrictions in buying or selling or anything that I should be aware of?

Thanks for help

Technically, you can trade via online after passing the SIP but..
the shares will be held in nominee account of the brokerage that you use to buy the HK shares.
CDP does not handle HKSE listings.

Same as buying singapore stocks, brokerage fees are applied to the purchase.
At the same time, there will be monthly custody charges for holding the stocks in nominee account.

Lim&Tan has a nice faq on HKSE
http://www.eq.com.sg/page/site/public/fa...market.jsp

(08-11-2013, 03:03 PM)yeokiwi Wrote: Technically, you can trade via online after passing the SIP but..
the shares will be held in nominee account of the brokerage that you use to buy the HK shares.
CDP does not handle HKSE listings.

Same as buying singapore stocks, brokerage fees are applied to the purchase.
At the same time, there will be monthly custody charges for holding the stocks in nominee account.

Lim&Tan has a nice faq on HKSE
http://www.eq.com.sg/page/site/public/fa...market.jsp

Thanks Yeokiwi,

So dividends will be paid to me after bokerage receive it right? Is it automatic, or do I need to do paper work? How much longer usually?

Ya. Can trade HK shares online via most SG brokers. Sometimes the brokers may need to
set up your HK custody/trading acct first.

Usually, if you do 1-2 foreign trades per month, they will waive the custody fees.

HK price quotations will have 15-30 delay unless you pay for subscription.

(08-11-2013, 03:09 PM)Greenrookie Wrote:

(08-11-2013, 03:03 PM)yeokiwi Wrote: Technically, you can trade via online after passing the SIP but..
the shares will be held in nominee account of the brokerage that you use to buy the HK shares.
CDP does not handle HKSE listings.

Same as buying singapore stocks, brokerage fees are applied to the purchase.
At the same time, there will be monthly custody charges for holding the stocks in nominee account.

Lim&Tan has a nice faq on HKSE
http://www.eq.com.sg/page/site/public/fa...market.jsp

Thanks Yeokiwi,

So dividends will be paid to me after bokerage receive it right? Is it automatic, or do I need to do paper work? How much longer usually?

Also all settlements in terms of purchase and sale payment , dividends can be settled in sing dollars??

Can put your hkd dividend in your hkd trust account. No need to convert back. And reconvert to hkd when u buy HK shares again. Must instruct broker to keep dividends or proceeds in hkd.

Default may be in sgd.

(08-11-2013, 03:13 PM)Greenrookie Wrote: So dividends will be paid to me after bokerage receive it right? Is it automatic, or do I need to do paper work? How much longer usually?

Yes. for cash dividend. For scrip, I am not sure whether the brokerage support foreign scrip dividend subscription.

(08-11-2013, 03:09 PM)Greenrookie Wrote: Also all settlements in terms of purchase and sale payment , dividends can be settled in sing dollars??

Yes.
I think you can settle in $HK too but you probably will need a HK bank account and cheque.

(08-11-2013, 03:34 PM)yeokiwi Wrote:

(08-11-2013, 03:13 PM)Greenrookie Wrote: So dividends will be paid to me after bokerage receive it right? Is it automatic, or do I need to do paper work? How much longer usually?

Yes. for cash dividend. For scrip, I am not sure whether the brokerage support foreign scrip dividend subscription.

(08-11-2013, 03:09 PM)Greenrookie Wrote: Also all settlements in terms of purchase and sale payment , dividends can be settled in sing dollars??

Yes.
I think you can settle in $HK too but you probably will need a HK bank account and cheque.

Yes. Brokers will support SEHK corporate actions like rights, bonus, scrip dividends and takeover offers.

(08-11-2013, 03:30 PM)opmi Wrote: Can put your hkd dividend in your hkd trust account. No need to convert back. And reconvert to hkd when u buy HK shares again. Must instruct broker to keep dividends or proceeds in hkd.

Default may be in sgd.

My default seem to be in HKD.

Yes, accumulate all dividends in HKD and then use it to repurchase HK stocks. No point going through the FX risk.

(08-11-2013, 03:13 PM)Greenrookie Wrote: Also all settlements in terms of purchase and sale payment , dividends can be settled in sing dollars??

I recall (might be wrong) even if there isn't any HKD in your trading account, the broker will just convert accordingly but I'm not sure what is the FX rate.

Greenrookie Wrote:Hi buddies, sorry need some guidance here. I wish to buy HK shares, I told my broker so, but he say I néed to do it through him. I already did the test on SIP products, why can't it be done? What are the bokerage fees and other costs involve in buying HK shares? Does it also reflect in our CDP, or do we need a separate Acc? What are the risks? Is there any restrictions in buying or selling or anything that I should be aware of? Thanks for help

I prefer doing it through standchart brokerage.

No min charges for HK trades or maintenance fees like custodian which local brokerages charge...

Same for US trades.

The downside is on some days (morning), the system is down even during morning trading hours. Well if doing short trades, better to go full brokerage unless you want to go long.
Dividends are retained in currency invested.