Any Hong Kong CFDs Providers?

[vooth]

Hi guys,

I am interested in hong kong stocks and am looking for hk based cfd providers. Anybody knows of any?

Thanks in advance.

 

[mark_b_27]

Almost certain that no such beast exists.
My understanding is that HK securities law forbids the short selling of stocks.
Hence it would be impossible for a broker to offer CFD's.
Apparently it is possible to short sell individual share futures.

 

[vooth]

Beast? Haha strong term indeed. But maybe CFD will be able to circumvent the law as they are not true securities per se, afterall CFDs are flourishing in europe?

 

[ns1000]

Beast? Haha strong term indeed. But maybe CFD will be able to circumvent the law as they are not true securities per se, afterall CFDs are flourishing in europe?

I think shorting is possible in Hong Kong stocks - subject to an uptick rule. It's quite complex, but in essence it means you can't hit a bid, but have to leave an offer and wait for a buyer to lift it. There are markets (Greece) where there's no potential to go short, but CFDs are still offered. The only prerequisite is really decent settlement procedures.

Not sure who offers HK at the moment - think Cantor's used to, but it's not on their website at the moment. Anyone who has offices in the Pacific region is probably a fair bet.

Nick

 

[vooth]

I think shorting is possible in Hong Kong stocks - subject to an uptick rule. It's quite complex, but in essence it means you can't hit a bid, but have to leave an offer and wait for a buyer to lift it. There are markets (Greece) where there's no potential to go short, but CFDs are still offered. The only prerequisite is really decent settlement procedures.

Not sure who offers HK at the moment - think Cantor's used to, but it's not on their website at the moment. Anyone who has offices in the Pacific region is probably a fair bet.

Nick

Thanks Nick, appreciate your comments.

 

[blue465]

Hi guys,

I am interested in hong kong stocks and am looking for hk based cfd providers. Anybody knows of any?

Thanks in advance.

Yes I use Global Trader, they have offices in Thailand,and maybe Singapore too. Locals and redchips.

 

[vooth]

Yes I use Global Trader, they have offices in Thailand,and maybe Singapore too. Locals and redchips.

Thanks Blue465.

 

[mark_b_27]

Personally, I would be sceptical of any broker offering shortable CFD's on a market that they themselves can not short.

Your profits are their losses. A state of affairs that a broker quickly tires of.

So is it possible to short sell HK stocks?

To be honest, I don't know for certain. The various regulatory websites are worthless,
and in HK it seems to depend on who you ask.

A secretary working for a large HK retail broker thought it was possible.
A compliance analyst working in the local office of a major US Investment bank, who had previously worked for the HK regulator (SFC) said it wasn't possible.

The first I met in a kowloon karaoke bar, the second on the Macau ferry.
You take you pick.

The only other thing I would add is this.
HK is rightly considered to be one of the world's premier financial centres.
However, take a look at the intraday trading activity in the HK listing of HSBC.
(HK's biggest company?)
The ticker on yahoo finance is 0005.hk
It's not what you would expect.

 

[vooth]

Thanks for your insights, mark_b_27, appreciate it.

 

[tamazin]

The short sell rule is indeed a factor in hong Kong, I should know I brokered the things for 10 years! We're just about to launch our HK and Singapore CFD's here if you want more info.. let me know via email ..