[cgibsonwsu]

Hello, I am an American. I just opened an investment account through HSBC. I wanted to sign up for monthly deductions for unit trusts. It allowed me to sign up and open an account but then states that if I am an American citizen I am not allowed to invest? Does anyone know why this is? Also, if ignored this warning and invested would I get in any trouble?? Thank you for your help!

[PDLM]

It's because HSBC has made the commercial decision that the cost of meeting the US Government's requirements for US-licensed banks to report on the investment activities of any US citizens that they deal with outside the US is not justified by the benefits, so they choose not to allow US citizens to invest with them. It's unusual that they let you open the investment account at all. Both you and (potentially) HSBC will get in trouble if you do proceed so they will make thir best efforts not to let you.

[Submariner]

I was also offered an investment account with HSBC, even though I raised the US citizen issue. The manager said its not a problem as long as I have an HKID. Haven't proceeded with this as I do not have my HKID yet, so I don't know if they will raise restrictions further along in the process.

[freeier]

i thought it always is a problem for the americans. even if they want to invest, they are not allowed to read the investment recomendations as those are all not suppose to be read by the americans hehee.

anyway basically its tax reason i think. not many country tax on capital gain and dividends, but america is apparently one and they intend to tax anything the citizen invest in.

[philippe]

Americans not allowed to invest in HK?

How so?

If this is the case, can somebody explain to me how Warren Buffett managed to sell his US Petrochina holdings (ticker PTR) to purchase Petrochina shares in HK (#0857) back in 2003?

[sylvesterjay]

give up your US citizenship and stop paying taxes outside the US. Only the US and one other country tax based on citizenship rather than residency. the benefits of a US passport...you get to pay the IRS no matter where you live! "America, f#ck ya!"

[karizmatic]

Hello.
From what I know of investing in Hong Kong, American's are allowed to invest providing they have a passport or HKID and a valid Hong Kong address. The only problem really should be the tax issue as American's are taxed worldwide. Other than that you shouldn't have a problem investing in Hong Kong. If you guys have any more questions feel free to PM me

[freeier]

u can invest if u pay the capital gain tax.
so u can do it from a corporate perspective since the tax paid is ridiculously high enough...

[PDLM]

There's no legal barrier - but the bank would have to provide the US Government with a load of paperwork, and most decide that it's not worth the hassle for small private investors.