How does Hong Kong Hang Seng Index open an account, and what are the conditions for opening an account?

H shares must first have a special account for H shares. At present, there are two ways to open an account for H shares. The most basic account opening procedure is to bring your personal ID card to a securities company in Hong Kong to open an account. Another form is to use the representative offices or cooperative units of some financial institutions in Hong Kong in the Mainland to help open accounts.

2, data preparation

1. Copy of ID card: Copy the front and back of the new ID card on a piece of paper.

2. Address proof: water and electricity bills, telephone bills, credit card bills or other public agency bills, and the name and address of the account holder should be correctly reflected on the documents. You can also entrust a neighborhood Committee or residential property to issue an address certificate.

Extended data

buy

1. You can open a Hong Kong stock account in the Mainland through a Hong Kong brokerage firm before you can operate H shares. (such as KGI Securities, Hengfeng Securities, Guoyuan Hong Kong, China Merchants Bank Hong Kong, etc. )

2. At present, domestic brokers can't directly open H shares. Generally, they open accounts through Hong Kong brokers, so these brokers will transfer funds in and out on their behalf. The specific rules are different for each brokerage company.

exchange rate risk

For individual investors, buying and selling Hong Kong stocks in Hong Kong dollars naturally involves exchange rate risk.

Hong Kong's Hong Kong dollar is pegged to the US dollar. Because the RMB still has strong expectation of appreciation against the US dollar, the RMB still faces appreciation against the Hong Kong dollar in the short term. The income of individuals investing in Hong Kong stocks is Hong Kong dollars, and the exchange of RMB will bear the risk of depreciation. Unlike QDII, which generally locks in the exchange rate risk, individuals need to bear all the exchange rate risks when investing in overseas stocks directly.

For example, from 2005 to now, the appreciation of RMB against the US dollar is around 8%, and it is showing an increasingly rapid trend. If the return on investing in overseas stocks is less than 8%, investors will be in danger of losing money.

Baidu encyclopedia -H shares