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.
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.
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.
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.
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.
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