Recently I saw a reader searching the web asking how to buy a China stock named L’Occitane .

For those who do not live in China or Hong Kong, even if they are interested in buying China stocks, most of them just don’t know how to do it. They may then lose the opportunity to make a profit. For example, CSV wrote a review on Hutchison Whampoa on February 23, 2010 and two weeks ago it hit a 39-month high at HK$97.45 on February 7 this year, up 77%.

For foreigners, as well as Hong Kong and Taiwan residents (including Chinese) who are not allowed to buy China A-shares unless they are QFII members, Hong Kong Exchange is the only place to buy Chinese stocks on-line.

The following is what you should do if you want to buy Chinese stocks listed on Hong Kong Stock Exchange but you are not a Hong Kong resident and you do not have a bank account there:

  1. If you have an account with an international broker, contact your broker and see if it can help you to arrange buying Hong Kong stocks on-line.
  2. If your broker does not have such connection, contact your bank’s investment department to see if they can help.
  3. If your bank is not an international bank, they will not be helpful. In that case, find an international bank in your area that can help you open a direct investment account to buy Hong Kong stocks directly on-line.
  4. If you do not know which bank can help you, try HSBC which is actually a Hong Kong based international bank with headquarters and registration in London. Open a direct investment stock account with HSBC by which you can buy Hong Kong stocks on-line. You may also try Chinese banks like The Bank of China or other Asian banks with branches in your area.

After you have opened an account, if you are interested in buying L’Occitane shares, find its Hong Kong stock code (0973), its lot size (250 shares per lot) and its latest price (HK$18.68 on February 25) first, so that you will have an idea of the cost of each lot (HK$18.68 x 250 = HK$4670) before you enter your buying order to buy the stock on-line. Please also pay attention to the rate of foreign exchange (USD1 roughly equals to HKD7.75) and the brokerage fee (assume 0.5% to 1% for each transaction)

Please note the trading hours of Hong Kong Exchange to see if you can buy directly during trading hours or if you have to leave a buying order to be fulfilled automatically.

Related articles:

China Stock Market Trading Hours Converted To Your Time Zone

Trading of China Stocks – Lot Size

Trading of China Stocks – Ticks and Tolerance

List of Stocks on H. K. Stock Exchange Main Board with Lot Sizes & Codes

List of H Shares on Hong Kong Stock Exchange Main Board as at 1-1-2011

List of Red Chips on Hong Kong Exchange Main Board as at 1-1-2011

What are A Share, B Share, H Share & Red Chip