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Hong Kong stocks are listed on the Hong Kong Stock Exchange. These stocks are categorized by market concepts into groups such as blue chips, red chips, and state-owned enterprises, and by sectors such as financials, technology, and utilities. The market includes both the Main Board and the Growth Enterprise Market, featuring key indices like the Hang Seng Index and the Hang Seng China Enterprises Index. In addition to stocks, the market also offers Exchange Traded Funds (ETFs), Real Estate Investment Trusts (REITs), and derivatives, including warrants, callable bull/bear contracts, options, and futures.
The Hong Kong stock market is recognized as one of the most dynamic and liquid markets in Asia and worldwide. With over 2,300 companies listed on the Main Board, it boasts a total market capitalization exceeding HK$42.7 trillion as of June, 2025.
The Hong Kong stock market is a hotspot for IPOs of fast-growing companies and offers a robust selection of dividend-paying stocks, providing options for investors seeking consistent returns.
Since the launch of Stock Connect, significant capital inflows from the Chinese mainland have further invigorated the market. Additionally, the market's potential continues to attract a growing number of international investors.
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Indices
Hang Seng Index
Referred to as the HSI, this index is derived from the market capitalization of 85 constituent stocks* and is a crucial indicator of the Hong Kong stock market trends.
*Data as of June 9, 2025.
Hang Seng China Enterprise Index
Often referred to as the H-shares Index, this index includes 50 constituent stocks and measures the performance of Chinese mainland companies that are listed in Hong Kong.
Hang Seng Tech Index
This index tracks the performance of the 30 largest technology firms based in Hong Kong, reflecting the overall health of the technology sector in the market.
Types
| Dividend stocks | Blue chips | Red chips |
| Stocks that provide consistent dividends and show minimal price volatility, typically from companies with stable earnings and well-established business models. | Constituent stocks of the Hang Seng Index, characterized by large market capitalization, robust performance, high liquidity, and price stability. | Stocks of companies incorporated outside the Chinese mainland but have their primary business activities and assets within the Chinese mainland and are listed in Hong Kong. |
| Utility stocks | Exchange Traded Funds (ETFs) | Real Estate Investment Trusts (REITs) |
| Stocks of companies providing vital infrastructure services, such as electricity, water, and gas, characterized by their large scale and resilience to economic cycles. | Funds that trade on exchanges and aim to track or replicate specific indices, such as the Tracker Fund of Hong Kong (2800) and the Hang Seng Index ETF (2833). | Trusts that manage real estate assets and aim to generate steady rental returns for investors. Hong Kong REITs are required to distribute 90% of their after-tax earnings as dividends to investors. |
Terminology
| Board lot | Odd lot | Auction session |
| The minimum number of shares required to initiate a trade, which varies among companies, often set between 100 to 2,000 shares. | Shares totaling less than one board lot, often resulting from events such as stock splits, changes in lot sizes, or dividend distributions. | Designated periods from 9:00 to 9:30 AM before the market opens and from 4:00 PM until the market closes, usually by 4:10 PM. These sessions have unique requirements for the placement, type, and adjustment or cancellation of orders. |
| T+2 settlement | Stock Connect | American Depositary Receipts (ADRs) |
| In Hong Kong's stock market, although stocks can be traded on the same day they are bought (T+0), the actual settlement of these transactions occurs two business days after the trade (T+2). | Including the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, this initiative connects the Hong Kong, Shanghai, and Shenzhen stock exchanges. It enables investors from these regions and abroad to trade specific stocks through local exchanges. | A certificate that allows shares of non-US companies to be traded on US stock exchanges, making them accessible to US investors. |
| Securities transfer | Grey market trading | Level 2 quotes |
| The process where investors transfer stock holdings from one brokerage or bank to another. | Also known as "over the counter trading", where trades of new stocks are matched in the brokerage's internal trading system after market close, one day before the official listing on the Hong Kong Stock Exchange. | Three types of Hong Kong stock quotes are available: BMP, Level 1, and Level 2. Level 2 offers detailed real-time updates on stock prices, transaction records, top ten bid and ask prices, and brokers. |
| Bull and bear market | Short selling | Initial Public Offering (IPO) |
| A bull market is confirmed when stocks or indices exceed their 250-day moving averages, suggesting a positive market trend. In contrast, a bear market occurs after a 20% fall from the peak, resulting in extensive selling as investors lose confidence. | Short selling occurs when investors sell shares they do not currently own. In Hong Kong, only certain securities are eligible for this type of trading. | In an IPO, a company offers its shares to the public for the first time to raise funds for future development. Investors can subscribe to new shares during this offering. |
| Trading sessions | Time |
| Extended morning session | 9:00 AM to 9:30 AM |
| Morning session | 9:30 AM to 12:00 PM |
| Lunch break | 12:00 PM to 1:00 PM |
| Afternoon session | 1:00 PM to 4:00 PM |
| Closing auction session | Begins at 4:00 PM and ends between 4:08 PM and 4:10 PM |
The costs of trading stocks depend on the share price, lot size, and transaction fees.
The minimum trading unit is one lot, not a single share. For example, as of June 26, 2025, buying one lot (100 shares) of Tencent (00700.HK) at a price of HK$513 per share would cost HK$51,300.
In addition to the stock's market price, trading costs include transaction fees collected on behalf of other agencies, such as stamp duty, and fees from Airstar Bank.
Type | Fees | Charged by |
|---|---|---|
Commission | 0.03%*transaction amount, minimum HK$3/order | Airstar Bank |
Platform Fees | HK$15/order | Airstar Bank |
Settlement Fees | 0.0042%*transaction amount | HKEX |
Stamp Duty | 0.1%*transaction amount, rounded up to the nearest HK dollar. For example, HK$2.01 will be roundep up to HK$3.00. There is no charge for trading ETFs. | Hong Kong Gov |
Trading Fees | 0.00565%*transaction amount, minimum HK$0.01/trade | HKEX |
SFC Transaction Levy | 0.0027%*transaction amount, minimum HK$0.01/trade | HK SFC |
FRC Transaction Levy | 0.00015%*transaction amount | HK FRC |
Notes:
①Fees for good-till-cancelled orders are charged based on the trading day. Transactions executed on the same day are charged as one order, while those on different days are charged separately.
② Fees collected on behalf of other agencies are determined by the "transaction amount" of filled orders, and each order may be executed through multiple transactions.
③ On this platform, the fees imposed by the Hong Kong Securities and Futures Commission are referred to as the SFC Levy, and those imposed by the Financial Reporting Council are called the FRC Levy.
Investors trading Hong Kong stocks through Airstar Bank are protected by the Investor Compensation Fund, which offers coverage up to HK$500,000. This fund is managed by the Investor Compensation Company Limited, a wholly-owned subsidiary of the Securities and Futures Commission (SFC).
| Hong Kong stocks | US stocks |
| Features companies from China mainland and Hong Kong | Opportunity to invest in leading companies in the US |
| Buy trades are made in lots | Buy trades are made in shares |
| No time difference, which aids in real-time market trend monitoring | Time difference exists, and with pre-market and after-hours trading, the trading window can extend up to 16 hours |
Before investing in the stock market, it is recommended for beginners to identify investment strategies that align with their personal financial goals. Two common approaches are value investing and technical analysis.
Value investing
Value investing is a strategy that involves a thorough examination of a company's operational and financial metrics to pinpoint stocks that are undervalued by the market. Investors who adopt this strategy typically aim for long-term holdings, capitalizing on gradual price increases and/or stable dividends.
Technical analysis
In contrast, technical analysis focuses on swift price movements and market timing. This strategy uses historical price data and chart patterns to predict future movements. Investors learn towards active day trading, where stocks are bought and sold within the same day to capitalize on immediate price fluctuations. This approach requires precise timing to maximize returns.
Ensure that you have enough liquid funds to cover your daily expenses before allocating money to investments. Effective budget management after investing is crucial to prevent the need to sell stocks unexpectedly due to a shortage of funds, which could negatively impact your trading strategy.
Everyone has a different comfort level with risk. It is important to understand your risk tolerance before making any investments. Tools like the Airstar Bank app can provide you with essential market information to help assess your personal financial situation.
Evaluate the performance of your investments by comparing asset prices and returns against similar products and indices. Make the necessary adjustments to your portfolio to align with your financial goals. Moreover, acquiring knowledge across different industries is essential for improving your investment skills and making well-informed decisions.
Investment involves risks. The prices of funds may fluctuate, sometimes dramatically in a short time, and the worst case may result in the loss of your entire investment amount. Returns on investments are not guaranteed, and there is potential for financial loss. Past performance is not indicative of future performance. Before making any investment decisions, investors should review all relevant offering documents, financial statements, and risk disclosures. It is critical to evaluate one's financial status, personal circumstances, and investment objectives thoroughly to ensure the investment aligns with individual financial needs. If necessary, seek independent legal, tax, financial, and other professional advice before making any investment decisions.
