“This comes at an opportune time as the Hong Kong market is poised for a recovery rally as further signs show that China will shift away from the zero-Covid policy that will lead to the reopening of the country,” said Rakuten Trade CEO Kazumasa Mise in a statement today.
“In fact, the HKEX benchmark index soared 6.2% in the first two weeks of December shows positive signs that recovery is imminent.”
Enabling access onto the HKEX reinforces Rakuten Trade’s vision of lowering the barrier of investing regardless of wealth and investing experience.
“The introduction of both US markets in January this year and now HKEX represent the top 2 markets requested by Rakuten Trade clients through the Voice of Customer programme.
“Thus far, response for the foreign market service has surpassed expectations and continues to grow at a healthy rate,” he said.
Designed for the digitally savvy individuals keen to execute self-directed trades, foreign market access is linked to its Cash Upfront account and allows clients to trade in ringgit and/or US dollars for the US Market, or Hong Kong dollars for HKEX.
Over 2,500 companies are listed on the HKEX and in the recent years has become a desirable investment choice for Malaysian investors keen to expand beyond local borders.
The HKEX is home to familiar listed companies such as Alibaba, AIA, Baidu, HSBC, and Meituan as well as Malaysian companies that coincidently make up its 2nd largest foreign company segment.
Rakuten Trade research head Kenny Yee said now is a good time to look at the Hong Kong market as valuations remain at “reasonable levels”.
“Based on current price-to-earnings (PER) of 10.5 times as against its three-year average of around 13 times, we believe there are still upside for HK stocks especially with the easing of restrictions in China,” he said, adding the financials will lead the recovery especially from the banks and insurance companies.
As of 30 November 2022, Rakuten Trade had activated more than 256,000 trading accounts and handled more than RM110 billion in total trading value on Bursa Malaysia since it commenced operations in 2017, while its clients’ assets under trust was almost RM3.6 billion.
Rakuten Trade is a joint venture between Kenanga Investment Bank Bhd and Japan’s Rakuten Securities Inc, which is part of Rakuten Group Inc.