How to Buy Hong Kong Stocks from the US
If you want a name that isn't an ADR or an ETF — Tencent (0700), BYD (1211), Meituan (3690) — you can trade it directly on HKEX from a US account. Here is the realistic route, the costs and the tax traps.
This is a practical walkthrough, not financial advice. Broker policies, fees and tax rules change; confirm with your broker and a US tax professional.
Two routes: direct HKEX vs ADR
| Direct HKEX (IBKR / Schwab Intl) | US-listed ADR |
|---|
| Universe | All 2,600+ HK-listed stocks | ~30–40 large names (TCEHY, BYDDY…) |
| Currency | USD → HKD conversion needed | Trades in USD, no FX |
| Stamp duty | 0.10% per side (mandatory) | None |
| Best for | Full HK universe, specific tickers | Simplicity, no FX headache |
Rule of thumb: ADR is simpler and cheaper for the ~40 giants; direct HKEX is the only way to reach the rest of the market.
Step-by-step (direct HKEX via Interactive Brokers)
- Open an international account. Choose IBKR, Schwab International or Futu/moomoo (US). You need an SSN, US address and KYC docs. Approval is usually 1–3 business days.
- Enable HK trading. In IBKR: Settings → Trading Permissions → enable "Hong Kong Stock Exchange" and submit the W-8BEN form.
- Fund in USD, convert to HKD. Wire or ACH USD in, then use Currency Exchange. IBKR's FX spread is thin (~0.02%).
- Find the code. HK stocks use numeric codes: Tencent = "0700 HK", BYD = "1211 HK", Meituan = "3690 HK". Use limit orders — spreads can be wide.
- Watch lot sizes. HK board lots vary (50–100,000 shares depending on the stock); orders must be in whole lots.
Costs and taxes to plan for
- Stamp duty is 0.10% per side on every HK trade — a real, unavoidable cost that ADRs avoid.
- US tax: HK dividends face no HK withholding but are taxed by the US as ordinary income. Brokers issue a 1099-DIV for US-held accounts.
- FBAR: if a non-US broker account exceeds $10,000 aggregate, file FinCEN Form 114. There is no US–HK tax treaty to soften this.
- Geopolitics: the same tariff and delisting risks that affect ADRs apply; direct HK holding avoids HFCAA delisting risk but adds currency exposure.
Related guides
Invest in China from the US → The ETF/ADR-first route most beginners start with.
Four Ways to Buy Chinese Equities → ADR, HK shares, A-shares and ETFs side by side.
Broker Comparison → Which platforms actually give US investors HK access.
ADR Delisting Risk Explained → Why some investors prefer the HK line.