How do mainland retail investors buy US stocks?
Mainland retail investors can participate in US stock trading services provided by overseas brokers through legal channels by opening compliant overseas securities accounts. The following are the relevant purchase channels:
1 Through Hong Kong Stock Connect or Shenzhen-Hong Kong Stock Connect.
Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect are mechanisms for mainland investors to buy Hong Kong stocks. Through these mechanisms, US stocks listed in Hong Kong can be purchased. US stocks purchased in Hong Kong usually exist in the form of H shares.
2. Through QDII funds
Mainland qualified foreign institutional investors (QDII) funds can invest in overseas markets, including the US stock market. You can choose to buy QDII qualified funds and indirectly hold US stocks through these funds.
3. Open an overseas securities account
Some mainland brokers and financial institutions provide services to open overseas securities accounts. By opening an overseas securities account, you can directly buy US stocks on overseas exchanges. It is usually necessary to provide corresponding identification documents, bank accounts and other information, and comply with the regulations of local financial regulatory agencies.
Step 4 Use an international online broker
Another option is to use an international online brokerage platform. These platforms allow you to trade stocks all over the world, including the US market. You need to register an account on the platform to deposit and trade funds according to its regulations.
Us stocks are not a T+0 trading system. In the United States, T+2 trading system is widely used, that is, the settlement period after the transaction is completed is two trading days. This means that when you buy and sell stocks in the US stock market, the funds or stocks after the transaction will be settled in your account after two trading days.