Chinese investors flock to Hong Kong to buy stocks they could get at home

Hong Kong

STEPHEN Qin, a 28-year-old office worker in northern China, travelled 1,600 kilometres and set up an account in Hong Kong to trade Chinese stocks he could have bought at home.

The money of thousands of mainland investors is doing a similar round trip, flowing into brokerages in Hong Kong and then returning to China via share purchases through the city's stock connect with Shanghai.

Why? It's cheaper. Discounts on trading commissions, lower margin-finance charges - even reimbursement for airfares - make the city's securities firms' offerings look like a bargain compared to those on the mainland. Chinese investors can also borrow higher amounts for trading than at home.

"I've done my research and realised it's quite a fantastic opportunity to trade stocks with a Hong Kong brokerage," Mr Qin, who lives in Jincheng in Shanxi province, said by phone. "It's definitely cheaper to trade with a Hong Kon…