KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Why Hong Kong Stocks Are Booming
Hong Kong’s stock market is on a roll, with the Hang Seng Index up an impressive 16.4% year-to-date! Tech, electric vehicles (EVs), insurance, and consumer stocks are driving the market rally, as mainland Chinese investors and global players return to Hong Kong stocks.
What’s Making Hong Kong Hot?
Here’s why everyone’s talking about Hong Kong stocks:
Valuations are a steal: Trading at just 10.5x earnings, Hong Kong stocks are a bargain compared to the 20xearnings multiple in the U.S.
China’s support: With stimulus, policy support, and pro-growth signals, investor sentiment is soaring.
Booming sectors: From Tencent to BYD, Hong Kong offers exposure to top Chinese giants in tech, EV, finance, and consumer sectors.
If you believe in China’s growth, Hong Kong is your gateway. And now, thanks to Singapore Depository Receipts (SDRs), you can invest with ease — no foreign accounts or currency hassles needed.
What Are SDRs? Your Shortcut to Hong Kong’s Best Stocks
An SDR is a security listed on the SGX that represents shares of Hong Kong-listed companies. You buy it in Singapore dollars via your local brokerage — just like any SGX-listed stock. No need for a foreign trading account, no foreign exchange fees, and no high capital outlays.
Here Are the 8 Hong Kong SDRs You Can Buy Right Now
These are blue-chip giants, making up over 40% of the Hang Seng Index:
Tencent
Alibaba
BYD
China Mobile
Ping An
AIA
CNOOC
Meituan
All of these stocks are available for you to invest in directly via SGX, with just a few clicks.
What Are the Risks?
Like any investment, SDRs carry risks. But with smart management, you can stay on top of them:
Market volatility: Hong Kong stocks can fluctuate based on headlines and policy shifts.
Currency risk: SDRs trade in SGD, but the underlying stock is priced in HKD — exchange rate changes can affect your returns.
Company-specific risk: Big names like Alibaba or BYD can experience bumps, impacting your SDR.
Liquidity risk: SDRs are relatively new, and some may have lower trading volumes.
Smartly Managing SDR Risks
For retail investors, SDRs work best as part of a diversified investment strategy. Think of them as a satellite investment to complement your core portfolio of more stable assets.
Why SDRs Should Be in Your Portfolio:
Diversify into China’s thriving market without going all-in.
Spread risk across 8 top-tier companies in tech, EVs, finance, and consumer sectors.
Invest smartly with a lower capital commitment and no foreign account requirements.
Final Thoughts
If you’re ready to tap into China’s fast-growing sectors without the usual hurdles, SDRs are your ticket. With these easy-to-buy securities, you can invest in Hong Kong’s hottest stocks — from the comfort of Singapore — and position yourself for growth in one of Asia’s most exciting markets.
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