Juejin Hong Kong Stocks Recommendations: Five Top-Performing Stocks to Help You Start Your Investment Journey in Asia

The Significance of Investing in Hong Kong Stocks

Many Taiwanese investors feel both unfamiliar and curious about Hong Kong stocks. As a hub connecting China and international markets, the Hong Kong stock market not only carries the pulse of Asian economies but also opens new horizons for Taiwanese investors seeking diversified international investments.

The Hong Kong securities market has a rich historical foundation. As early as the mid-19th century, stock trading had already begun in Hong Kong; the Hong Kong Stockbrokers Association was established in 1891, and the Hong Kong Stock Exchange officially emerged in 1986. Today, it has developed into one of the fairest and most mature markets globally. Strict regulatory systems and clear trading rules allow investors to deploy their assets with confidence.

As of the end of May 2025, the total market capitalization of Hong Kong stocks reached approximately $5.2 trillion USD, ranking among the top in the global market. Compared to European and American markets, the geopolitical advantages of Hong Kong, Macau, and Taiwan are even more apparent—no time zone differences, seamless language communication, and familiar policy trends—making investing in Hong Kong stocks the top choice for Taiwanese investors.

The Unique Advantages of Hong Kong Stocks Cannot Be Ignored

1. Rich Investment Options: Currently, Hong Kong’s securities market offers over 1,000 stocks, numerous mutual funds, and bonds, providing investors with ample choices.

2. Two-way Trading and Flexible Mechanisms: Hong Kong stocks support T+0 trading, allowing stocks bought on the same day to be sold on the same day; it also permits short selling, enabling profits in both rising and falling markets. Compared to Taiwan’s 10% limit-up/limit-down system and mainland China’s restrictions, Hong Kong stocks have no such limits, offering greater profit potential.

3. Continuous Inflow of Mainland Capital: Since the Shanghai-Hong Kong Stock Connect was launched, Chinese investors have continuously flowed funds into the Hong Kong market, injecting ample trading volume and liquidity.

4. Favorable Dividend Tax Rates: The dividend tax rate for Hong Kong stocks is 10% (for non-Hong Kong residents). Through W-8BEN declaration, it can be further reduced to 21%, lower than other overseas markets.

Core Differences Between Hong Kong Stocks and US Stocks

Hong Kong trading rules are similar to those of US stocks but with key differences:

Trading Hours: Hong Kong trading hours are 09:30-12:00 and 13:00-16:00 Taipei time, aligning with Taiwan’s schedule; US markets require adaptation to time differences.

Market Composition: Hong Kong mainly covers finance, real estate, and technology (mainly Chinese concept stocks); US stocks focus on technology, consumer, healthcare, and semiconductors.

Trading Units: The minimum unit for Hong Kong stocks is 1 lot (the lot size is set by the issuing company), usually 100 or 1000 shares; US stocks are traded in single shares, offering more flexibility.

Number of Exchanges: Hong Kong has only the HKEX; US has multiple exchanges like NYSE and NASDAQ.

Major Indices: Hong Kong focuses on the Hang Seng Index (HSI), Hang Seng China Enterprises Index (HSCEI), and Hang Seng Tech Index (HSTECH).

Since Hong Kong stocks have no time difference with Taiwan and feature lower dividend tax burdens, they are relatively more accessible and convenient.

Recommended Hong Kong Stocks to Watch

Currently, Hong Kong stocks are at relatively low levels, making it an ideal entry point. Below are some high-quality companies with market caps over HKD 200 billion, all worth attention:

Tencent: The King of Market Capitalization in Hong Kong Stocks

Code: 0700.HK | Market Cap: HKD 4,737.63B | P/E Ratio: 23.18x

Investing in the largest company by market value in the local market is always a top choice. Tencent was founded in 1998 and is a leader in China’s communication and social services, as well as the largest internet enterprise by scale. Ma Huateng and Jack Ma are known as the “Two Ma’s.” Many Chinese internet companies’ backers are either Tencent or Alibaba.

Although Tencent’s stock price sharply declined from its historical high of HKD 775 in early 2021 due to gaming regulation, fintech compliance, and anti-monopoly investigations, the policy environment has stabilized, and the stock began rebounding in 2024. As of June 2025, it remains in the HKD 400-450 range, with a P/E ratio of about 23, below the five-year average, making valuation increasingly attractive.

With an irreplaceable social ecosystem, diversified revenue streams, and improving policy conditions, Tencent remains one of the most stable long-term investment targets.

BYD: Leader in New Energy Vehicles

Code: 1211.HK | Market Cap: HKD 506.46B | P/E Ratio: 28.13x

Founded in 1995, BYD initially specialized in battery manufacturing and has now become a global leader in new energy vehicles. In 2024, BYD’s global vehicle sales reached 4.27 million units, surpassing Tesla to become the world’s top seller of new energy vehicles and ranking fourth globally among car brands.

Financial performance is impressive: revenue in 2024 was approximately USD 107 billion, up 29% year-over-year; net profit was RMB 40.25 billion, up 34%. The single-vehicle gross profit margin is about 21.02%, exceeding Tesla’s 17.9%. The company is accelerating its international expansion with production bases in multiple countries, helping to reduce costs and expand market share.

CNOOC: Stable Energy Supplier

Code: 0883.HK | Market Cap: HKD 880.25B | P/E Ratio: 6.04x

CNOOC (China National Offshore Oil Corporation) is China’s largest offshore oil and natural gas producer. In 2024, crude oil production was about 530 million barrels, and natural gas output was approximately 115 billion cubic meters, demonstrating stable production.

The International Energy Agency forecasts that natural gas demand will grow at an average annual rate of 2% over the next decade, which is favorable for CNOOC’s natural gas business. The company’s financials are stable, with a P/E ratio around 6, indicating low valuation.

Investors should be aware of risks such as global oil price fluctuations, environmental policy changes, and geopolitical impacts on operations.

Baidu: Pioneer in AI and Cloud Computing

Code: 9888.HK | Market Cap: HKD 244.12B | P/E Ratio: 30.67x

As China’s leading search engine and AI technology company, Baidu has significant investment potential. In Q1 2025, revenue was about RMB 32.5 billion, up nearly 3% year-over-year, driven by rapid growth in cloud computing and AI services.

China’s cloud computing market is expected to grow at an average annual rate of 30% in the coming years, offering broad development space for Baidu. Its autonomous driving platform “Apollo” has attracted collaborations with multiple automakers, providing new growth drivers.

Intensified market competition and policy changes are key risks to monitor.

Pop Mart: Leader in Trendy Toys Culture

Code: 9992.HK | Market Cap: HKD 364.20B | P/E Ratio: 108.73x

Pop Mart is China’s leading trendy toy company, famous for original IPs and blind box products. Its popular IP Labubu has gone viral in recent years, doubling its market value, with frequent queues for new product launches.

With over 500 stores worldwide and more than 2,000 Robo-Shops, covering over 30 countries, in Q1 2025, revenue increased 165% YoY, with overseas markets growing about 475%. JPMorgan predicts that the “THE MONSTERS” series could reach RMB 14 billion in sales by 2027.

Currently, Pop Mart is in a high-growth phase, with outstanding overseas market performance and high-end IP commercialization, making its development potential highly promising.

Three Ways to Invest in Hong Kong Stocks from Taiwan

Method 1: Discretionary Trust

Open an account with a local Taiwanese securities firm to trade Hong Kong stocks. The advantage is convenient TWD trading; the downside is it only supports long positions without leverage or short selling, and fees are higher.

Method 2: Hong Kong Broker Account

Open an account with Hong Kong brokers like Interactive Brokers or Futu. The advantage is low transaction fees; the downside is funds need to be transferred in HKD or USD, and currency conversion may incur costs. Leverage for direct Hong Kong stock trading is limited.

Method 3: CFD Contracts for Difference

CFDs allow two-way trading with margin and leverage, enabling simultaneous investment in individual stocks and indices without currency exchange concerns. The advantages are flexible operation and low costs; the downside is platforms usually only offer large-cap stocks, with limited options for smaller-cap stocks. Leverage amplifies both gains and losses, so caution is essential.

Risk Management Tips for Hong Kong Stock Investment

Choosing a trustworthy trading platform is crucial. A good platform not only protects your principal but also provides strict alert mechanisms, allowing you to trade with peace of mind.

Set reasonable stop-loss points. Hong Kong stocks have no daily limit-up/limit-down restrictions, and daily price swings can be large. Investors must set appropriate stop-loss levels based on risk awareness to avoid unexpected losses.

Diversify your funds. Spread investments across different stocks to mitigate risk and avoid heavy concentration. Light positions and diversified holdings are effective strategies to reduce asset risk.

Summary

Compared to the all-time high Nikkei, near-record US stocks, and Taiwan stocks, Hong Kong stocks are currently at a low point with more investment value. Unless you are very pessimistic about China’s economic outlook, investing in these leading companies at current valuations is a rare opportunity. The recommended Hong Kong stocks are undervalued, fundamentally sound, and worth in-depth research.

When entering the Hong Kong market, choose the timing based on your investment preferences and risk tolerance. The high volatility of stock prices presents both risks and opportunities. A cautious and rational investment approach will help you achieve better returns amid the opportunities Hong Kong stocks offer.