| the us gov pressures alot of foreign banks for us citizens because all capital gains and dividends on investments are taxable (i think 1099 div/int)
hsbc hong kong doesnt want to go around filing 1099's which require your social security number, tracking your positions, preparing forms, then sending them out blah blah.
The guy opening your account has no idea what the rules are for and may try to get u to sign papers saying you're not a us citizen when you are, just so they can try to sell investment products (and get a commission).. be careful what u sign.
It sucks not to be able to invest in the us stock market but if u have dual citizenship, u can do it by opening the account with your other passport.. only america has these rules.
In short.. hong kong has no capital gains tax, so they have no infrastructure for tax reporting, and have no interest in becoming a tax collector for random foreign governments.. lots of work for them with no money in it for them. And it scares off depositors. Lose Lose.  |