Trading Hong Kong Share CFDs with Pepperstone

Jerry Chen
Research Strategist
15 July 2022
Pepperstone is thrilled to announce that the Share CFD offering is expanding!

Traders can access and trade nearly 50 Hong Kong Share CFDs with Pepperstone from July, in addition to the existing portfolio of 890 US, 199 AU, 190UK and 86 DE shares.

Our new Hong Kong stock list will include Chinese Internet giants (Alibaba, Tencent,, new economy leaders (BYD), as well as state-owned enterprises. It also consists of some Hong Kong local companies and multinational ones.

Why Trading Share CFD with Pepperstone?

The main difference between CFDs and physical stock is that CFDs are leveraged, which could increase your purchasing power and maximize your return. Besides, traders do enjoy the advantages like lower trading costs, ease of execution, and the ability to go long or short.

With the addition of Hong Kong Share CFDs, you are now just a click away from trading the global market!

Why Trading Hong Kong Share CFD?

In a contrast to the bearish outlook of the US and EU equity markets, Hong Kong stocks have decently rebounded since the May low. It might be an ideal destination where investors can diversify their portfolio and explore more opportunities.

Here are five reasons to trade Hong Kong stocks.

1 Gain exposure to China’s core assets

    As the second largest economy in the world, China has been the global economic powerhouse for decades. However, trading mainland China’s A-shares (RMB-denominated stocks in Shanghai and Shengzhen exchange) is highly restricted for non-Chinese citizens at the moment.

    Hong Kong, a key gateway to and from the mainland, is the perfect link between China and the global financial markets. By the end of 2021, the number of mainland China companies listed in HK reached 1,368, accounting for 53% of the total number and 81% of market value.

    Among our HK share CFD list, you will find the big names in the Chinese tech sector, industry leaders from the new economy, and the companies that have not yet been listed on the A-share market.

    Easy access to these stocks (CFDs) with Pepperstone will enable you to directly get exposure to China’s strategically important assets and benefit from China’s economic transition in the long run. 

    2 Economic Revival and Low Valuation

      While most developed nations are deeply troubled by decades-high inflation and growing recession fears, mainland China & HK economy has been bottoming out recently. The regulatory pressure that has smashed the tech and property industry for a long time is fading out, with more stimulus measures underway.

      In terms of the market performance, Hang Seng Index has rebounded by 16% since the May low, while S&P 500 entered a bear market, a perfect reflection that China and the US lie in different economic cycles. And the valuation of Hong Kong stocks remains attractive compared to other major markets including the mainland.

      So, why not diversify your risk and share China’s growth by adding HK stocks into your portfolio?

      3 Impressive Liquidity and Volatility

        According to data from the Hong Kong Stock Exchange (HKEX), the total turnover of the HK stock market in 2021 hit HK$41.1 trillion, up by 28.2% from the previous record.

        The total turnover under Hong Kong Stock Connect (a cross-boundary investment scheme that allows China investors to trade HK shares) reached HK$9.3 trillion last year, 68% higher than the previous peak.

        In terms of volatility, stocks in Hong Kong tend to have a wider daily move range than those in other markets. Take Alibaba as an example, its average daily percent move is around 4% and 20-day volatility sits at 67% (end of June).

        For CFD traders or day traders, deep liquidity provides the ease with which traders can enter/exit the trade and higher volatility means more opportunities.

        4 Growing Attractiveness

          Hong Kong ranked the fourth most popular IPO fundraising hubs with over US$40 billion in 2021. It has also reformed the listing regulations since 2018. As a result, 27 mainland China incorporated companies have since returned to the Hong Kong market, including Alibaba in 2019, in 2020, and Baidu in 2021.

          More US-listed Chinese companies are expected to return in near future, which could lead to continued money inflow, a positive for the HK stocks.

          5 Sound Financial System

            According to the latest survey in 2022 (GFCI 31), Hong Kong secured third place in the ranking of international financial centers, only behind New York and London.

            The city is well known for its sound financial and legal system. On top of the deep liquidity mentioned above, HK stock market has a wide range of derivatives instruments and mature short-selling mechanisms, which ensure a high level of transparency and efficiency. Tax benefits and free currency exchange are the key foundations of HK economy as well as its capital markets.

            Have a different view on HK or mainland China? No problem! Trade Hong Kong share CFDs in either direction with leverage and low cost! Visit our website for more information.

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            Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. It does not take into account readers’ financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.