Hong Kong stocks are soaring, how can ordinary people invest in Hong Kong stocks?

After the spring of 2025.Hong Kong stock market recovers stronglyThe Hang Seng Index and the Hang Seng Technology Index both performed well and market sentiment was high.

As of the close of trading on Feb. 21, the Hang Seng Technology Index has been a strong performer, having surged more than 31%, cumulatively.Hits 3-year high and enters technical bull market. The cumulative gains of the three major U.S. stock indexes, however, are all less than 3%.

Source: Oriental Fortune

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Hong Kong Stocks Upside Codes:

Low valuations + revaluation of Chinese tech assetsRevaluation of technology assets

DeepSeekTechnological breakthroughs in big domestic AI models such as these have triggered the market's revaluation of the potential of Chinese tech companies. Such innovations have provided valuation repair opportunities for Chinese tech stocks, driving theHong Kong Stocks Internet, Semiconductor SectorsCollective rise.

In addition, the accelerated commercialization of technologies such as 5G and cloud computing has further strengthened earnings growth expectations for technology stocks.

Valuation depressions attract global capital allocation

Hong Kong sharesLong-term valuation depressionThe P/E ratio of the Hang Seng Index at the beginning of 2025 is significantly lower than that of major global stock indices.

The attractiveness of emerging market assets has increased under the US dollar interest rate cut cycle, and Hong Kong stocks, as a bridge connecting international capital with the Chinese economy, have beenEasier access to incremental fundingThe

Foreign capital and southbound funds together to increase

The return of foreign capital:Foreign optimism about China's technology sector has risen significantly. Bank of America's February survey showed that 18% of global fund managers believe the Hang Seng Index will be among the world's top performers in 2025.

Southbound inflows::Southbound funds accelerated inflow, as of February 19 net buying amounted to 183.935 billion yuan, focusing on increasing holdings of technology leading stocks.

Marginal improvement in the policy environment

Since 2024, domestic policies have continued to gain momentum, includingInterest rate cuts, quota cutsas well ascapital market reformetc., providing liquidity support and confidence boost to the Hong Kong stock market, which as an offshore market is also more sensitive to policies.

In the face of this wave of Hong Kong stock market surge, how can Mainland investors participate in it and share the market dividends? Here are a few common and feasible ways.

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Ways for Mainland investors to invest in Hong Kong stocks

1,Investing through Hong Kong Stock Connect

HK Stock Connect is one of the major channels for Mainland investors to invest in Hong Kong stocks, includingShanghai and Hong Kong connectioncap (a poem)Shenzhen-Hong Kong Stock Connect. Investors can open Hong Kong Stock Connect privileges through mainland brokerage firms to directly purchase certain stocks listed on the Hong Kong Stock Exchange.

Scope of investment: The HK Stock Connect covers constituent stocks of the Hang Seng Composite Large Cap and Mid Cap indices, as well as some A+H stocks.

fig. knack or trick (esp. scheme get sth cheaper): Investors are required to fulfill the asset requirement of RMB 500,000 yuan.

Trading Mechanisms: Settlement in RMB, subject to daily quota.

2,Open a Hong Kong Securities Account

Investors canChoose to open a securities account with a broker in Hong KongIn addition, you can directly participate in Hong Kong stock trading with a wider investment scope and without the restriction of Hong Kong Stock Connect. However, you need to handle foreign exchange by yourself and need to comply with the regulatory requirements of the Mainland and Hong Kong.

Documents such as proof of identity and proof of address are usually required, and some brokers support online account opening.

3,Investments through the Fund

Investment in Hong Kong stocks through the Fund meansInvestors purchase fund products that specialize in investing in the Hong Kong stock marketThe Government has been participating in the Hong Kong stock market indirectly.

This approach is suitable for investors who do not want to trade Hong Kong stocks directly, or are not too familiar with the Hong Kong stock market, but wish to participate in Hong Kong stock investment, common ones areQDII(Qualified Domestic Institutional Investor) Fund and Hong Kong Stock ETF (Exchange Traded Fund)The

The fund company will invest these funds in stocks, ETFs or other financial instruments in the Hong Kong stock market, and investors will enjoy the returns of the Hong Kong stock market through holding the fund shares.

The recent surge in Hong Kong stocks has brought development opportunities to the Hong Kong stock market.Policy support, scientific and technological progressas well asIndustrial AdvantageA number of factors, such as the combination of these factors, have built a solid foundation for the Hong Kong stock market.

However, investors also need to remain cautious, fully recognize the potential risks and do a good job of risk management in order to move forward steadily in this market full of opportunities and challenges.

If you are interested in Hong Kong stock trading, please feel free to contact us.