Hong Kong exchange

With the increasing talk of possible delisting of Chinese stocks from the NYSE, it would be nice if Trading 212 started to add some HKEX’s stocks.

Also it would be nice to convert stocks from NYSE to the counterpart in HKEX.

Is this something that we can expect in the near future?

Thanks

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It’s not legally possible. One is listed on US and other in HK.

It’s not legally possible where? In the UK? In Europe?
I know some US Brokers that allow this. That’s why I mentioned it.

One is a stock and one isn’t, so I’m amazed this can be done.

Can you link?

This are some sources

But you are talking about stocks or ADRs?

Stocks and ADRs or other type of depositary receipts are different things.

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Please could you explain better?

Through T212 we can buy the ADR version of $BABA. Which represents an underlying ADS that the custodian bank holds.
According to the articles, we can convert our ADR stocks, into stocks of the Hong Kong Exchange.

How am I wrong?

In the our original post you mentioned stocks and dual listings.

You aren’t wrong. With ADRs, it have a possibility to exchange the ADR with ADS for real underlying securities, it will depend on number of factors, the financial intermediaries, if foreigner investors could hold the local securities, etc.

This explains that IBKR allows it (see below).

However, I don’t know “what direction” it would work. eg. With a UK stock such as BP my guess would be it is likely that you can only convert from the USA ADR to the UK listed stock and not the other way around.

For example, for Alibaba would we be only able to convert the Hong Kong stock (secondary listing?) into the NYSE stock (primary listing) and not the other way around?

https://www.interactivebrokers.com/en/index.php?f=15260

Also, I guess that we would have to have access to the Hong Kong exchange first.

It may also be quite expensive to convert, looking at the fees.

Yeah, main objective of the topic is to request Hong Kong Exchange stock’s to be available in T212.

The rest is secondary and can happen in time :+1:

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+1 for this request for HK exchange to be added and the ADR conversion. This issue already affects the China mobile ADR which was delisted from the NYSE. So this enhancement would solve this issue as well.

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There is normally a small cost associated with the ADR conversion process, least working with other brokers this is market norm for the work involved when converting ADRs and pNote positions back to the local line. It may be simpler selling and buying back the stock, as incurring the 2 x 0.15% FX fees and spread may be lower than this if 212 can manually process this on your behalf.

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Do not worry about conversion. The main thing is to have acces to the HKEX.

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Understood but currently the option to sell is not available for China Mobile, so conversion seems to be the only viable option at least for now.

@Y.M is this a possibility in the near future? thanks