Buying and selling stocks

[runnergal]

Hi All,

I would like to buy some stocks but i don't want to go through a third person. I know I can do it through my HSBC website, but it asks for a stock number.

I have a few questions therefore for people who do this:

Where do you read information about stocks. How do you find out whether they are new, information about the company etc.

How can I go through the actual process of buying using an HSBC website?

Are there any pitfalls I should look out for?

Thanks

Miranda

[chris_in_hk]

Hi Miranda,

I'm not with HSBC so I don't know exactly how their trading website is set up. However, you can go to the HK Exchange's website at: http://www.hkex.com.hk/ for stock/ticker numbers. It's got a search function so you can type in the name of the company and it'll give you the stock number.

You can also find annual reports, results, dividend information off the HKEx site and it's all free!

There isn't really any pitfalls with online trading. Just that you don't have a broker that could give you advice or opinions. Personally I do all my trading online.

Trading through HSBC (or any large bank) is more expensive than through small brokers in terms of charges (buying, selling, annual fee, collection of dividends, etc) but you don't have to worry about the small brokerage going bust or running off with your money.

I can give you other financial websites if you like.

[runnergal]

Chris for taking the time to answer.

when you say you trade online but don't go through a bank, how do you do it then? Through that website you posted?

Would also love any website you have.

[ayukobaby]

wat stock are u thinking of buying? i wanna buy some stocks too

[chris_in_hk]

Hi Miranda,

I trade through Boom.com http://home.boom.com.hk/index.html

I subscribe to Quamnet http://www.quamnet.com/fcgi-bin/index.fpl

and I also browse through http://www.newone.com.hk/eng/default.asp though I don't really like stock picks from this site as they're too short-term minded.

Those are my main websites for looking at HK stocks. I've got other sites for the US and other markets.

How much experience do you have in investing?

[runnergal]

To be honest...none....but my mother of all people has given me some tips although she has made quite a lot of money on the Australian stockmarket. She has no idea about HK. THat is why I want to read up for a good few months before I actually buy just to get an idea about the market. Do you think this is a good idea?

And thanks for the websites!

[chris_in_hk]

Definitely learn the basics of investing first. Are you looking to invest for the long-term or short-term? I’m long-term and buy and hold. By long-term I’m meaning 5 years and upwards.

Regardless of where I hear tips from, I always prefer to do some background checking first and look at the numbers.

BTW that Boom.com site can trade the Australian market as well as other overseas market.

With the Australian Ordinaries and the Hang Seng Index near multi-year highs you’re going to have to be more selective in choosing your stocks.

Also, individual stocks may not be the best starting place for you. It might be better for you to start with unit trust funds/mutual funds first. They’re more diversified and individual stocks are more like putting your eggs into a lot fewer baskets (so they’re riskier if you don’t know what you’re doing).

Without knowing more about your investment horizon, risk tolerance and objectives it’s difficult to say.

[runnergal]

Yes...long term too.

Are you australian?

Something I have been trying to find out but I keep on getting conflicting reports. is whether I have to pay more capital gains tax now that I am no longer considered an australian resident.

Let me explain. I have been out of Australia now for so long that the tax office doesn't give me the tax free threashold anymore. This means that any earnings aretaxed. So my savings in the bank in Oz are taxed fully. I would idealy like to invest in the australian market, NOT the HK, but I don't really want to pay full tax on all of the capital gains.

I was wondering if you were Australian and knew anything about this.

Thanks again for your help

[dezza]

check out http://etnet.com.hk/ for stock info.

also remember that unlike other western countries, you have to buy a minimum number of shares known as a "board lot".

This board lot number depends on the individual company. You can't just buy 10-20 shares at a time. For example, HSBC shares are sold in lots of 400. At around $130 HK a share, you'd need an investment of over $50K. Not for the faint of heart!

[chris_in_hk]

Runnergal,

I'm not Australian so I don't know their tax system. However, as long as Australia doesn't have a worldwide tax on their citizens like the US you should be able to avoid paying their taxes for the salary, income and capital gains you make over here (I'm assuming you're not seconded or paid from Australia) i.e. you work for a company in HK and are paid as a local hire. That should make you subject to the HK tax laws and they don't have any capital gains tax here (which is great).

There isn't anything you can do to avoid being taxed for your savings in Oz. Well, except perhaps to move your money over here and/or to the point where it's below the non-taxable limit (if there is one over there). That's based on my very limited knowledge of Australian taxes.

It's totally possible to buy Australia stocks from here and not pay capital gains tax (as there isn't any here in HK). I don't know if there's a withholding tax on dividends in Australia. If there is, you may be able to get around it as a non-resident, but some, like the US, you can't avoid. The US take 30% as a dividend tax.

Yes, they don't usually trade in 'odd lot' sizes over here i.e. not a complete number of lots. There's some more expensive than HSBC to buy one lot of, but most don't need that amount of money to buy. The lot sizes are readily available on HK Exchange and other sites.