U.S. Stock Trading

Investment involves risk. You should carefully consider whether any investment products or services mentioned herein are appropriate for you in view of your investment experience, objectives, financial resources and relevant circumstances. The price of securities may move up or down and may become valueless. Losses may be incurred rather than profits made as a result of buying and selling securities.

Customers are eligible for signing up for the U.S. Stock Trading Service if they are

• Non-U.S. persons
• Able to provide a valid identification document such as permanent Hong Kong Identity Card or passport.
• Non professional market data subscribers⁷ (Please refer to the NYSE Market Data Agreement [PDF] for details.)

⁷One of the criteria for being classified as 'Non-professional' subscribers is not being engaged as an investment advisor. In brief, "Investment adviser" means any person who, for compensation, engages in the business of advising others, either directly or through publications or writings, as to the value of securities or as to the advisability of investing, purchasing, or selling securities, or who, for compensation and as part of a regular business, issues or promulgates analyses or reports concerning securities.

Can I trade Publicly Traded Partnership (PTPs) with HSBC?

From 23 Nov, 2022 onwards, we will not accept any purchase or transfer-in instruction of Publicly Traded Partnerships (PTPs). From 1st Jan 2023, you will no longer be able to liquidate or redeem your holdings. HSBC will not be executing any sell orders of publicly traded partnership holdings on behalf of its clients. We can only facilitate a transfer out of publicly traded partnership securities provided there is no change of legal title and beneficial ownership. There will also be U.S. tax reporting and potential withholding tax consequences if you continue to hold these publicly traded partnerships securities on and after 1st January 2023.

Please click here for the list of impacted PTPs (applicable to customers of both HSBC Wealth and Personal Banking and Global Private Banking in Hong Kong only). Any outstanding orders with these PTP instruments beyond 30 Dec 2022 (US time) would be cancelled after market close.

What is W-8BEN form? (should submit together with the Return Sheet)

The W-8BEN form [PDF] is a requirement of the U.S. Internal Revenue Service ("IRS") for U.S. tax reporting for non-U.S. persons. Non-U.S. persons are subject to U.S. withholding tax (generally 30%) on certain types of income received from U.S. sources, such as interest and dividends.

Non-U.S. persons are required to complete and submit a duly completed W-8BEN Form for the following main reasons:

• to establish that you are not a U.S. person; and
• to claim that you are the beneficiary of the US-sourced income for which the W-8BEN Form is provided; and
• to claim, if applicable, a reduced rate of, or exemption from, withholding tax by being a resident of a foreign country/region with which the United States has an income tax treaty.

If you would like to know more about the instructions for Form W-8BEN and tax treaties, please visit the following IRS websites or consult your tax adviser:

How can I submit a new W-8BEN form?

Before the expiry of the W-8BEN form, you need to submit a new W-BEN form to continue the service.

Duly complete the following forms and submit them to any Hong Kong branch or mail them to The Hongkong and Shanghai Banking Corporation Limited, P.O. Box No. 74523, Kowloon Central Post Office.

W-8BEN form [PDF] as required by the U.S. Internal Revenue Service Guidance for Completion of W-8BEN form [PDF] 

Additional information:

• "Explanation of Different Information" reply form [PDF] (applicable when Country/region of Residence and Correspondence Address being in different countries)
• Explanation of a US Address and/or US Phone Number [PDF] (applicable when there is US address or US territory address found on the account and/or US phone number)

Note: In general, Form W-8BEN is valid for a period of three years provided that there is no change to your information or tax status.

What is the NYSE Market Data Agreement?

The NYSE Market Data Agreement [PDF], relates to provision of market data by the New York Stock Exchange (NYSE). As required by NYSE, every HSBC customer must sign this agreement to confirm that he/she is a "non-professional" market data subscriber before obtaining access to the NYSE's market data.

Will my U.S. and overseas securities instructions be executed in alternative trading venues?

In respect of orders for securities listed on stock exchanges outside of Hong Kong, it is our existing practices that the Bank may transmit your orders to affiliated HSBC entities and third party brokers for execution, who may, subject to local regulation, execute such orders on alternative trading venues ("ATVs"), including dark pools.

The primary potential benefits for using ATVs is to achieve better pricing and to reduce transaction costs. In general, ATVs and ATV operators are subject to regulations which are not necessarily the same as regulations that are applicable to exchanges and exchange operators. A typical feature of ATVs is that there is no pre-trade transparency. The reference prices on an ATV could be "stale" or out-of-date due to latency from data feeds. Separately, access to ATVs is usually restricted and there could be less supply and/or demand on an ATV (as compared to the supply and/or demand on an exchange) due to the limited number of participants.

Our affiliated HSBC entities and third party brokers generally consider the execution price and opportunities for price improvement when deciding the appropriate venue for executing orders. There may also be other factors in their consideration, for example (i) market depth and order size; (ii) the trading characteristics of the security; (iii) speed and accuracy of executions; (iv) the availability of efficient and reliable order handling systems; (v) liquidity and automatic execution guarantees; (vi) service levels; (vii) the cost of executing orders; and (viii) execution certainty. The Bank will continue to monitor and evaluate the execution practices of our affiliated HSBC entities and third party brokers.

Can I choose to opt out alternative trading venues ("ATVs") for executing my U.S. and overseas securities instructions?

Customers cannot choose to opt out ATVs but please rest assure that execution in ATVs would have been reviewed and have adopted the applicable local regulatory requirements. The Bank will continue to monitor and evaluate the execution practices of our affiliated HSBC entities and third party brokers.

Overseas Securities Services

For HSBC Premier customers⁸. It can help you access stock markets in China, UK, Japan, Australia and Canada, and diversify your investment portfolio.

• Round-the-clock trading through HSBC Phonebanking⁹
• Flexible settlement currency choices of US dollars and Hong Kong dollars
• Shares are placed under the custody of HSBC through our nominee services with all dividends and bonus shares credited to your HSBC Premier account¹⁰

Register now through your local HSBC Premier Centre.

⁸The Service is offered for Hong Kong Residents who are non-US citizens.

⁹Round-the-clock service from 7am Monday to 6am Saturday, including Hong Kong public holidays. Orders made after the close of market will be placed on the next trading day.

¹⁰All cash dividends will be paid in corresponding stock currency.

¹¹The safe custody fee is due and payable in June and December every year on a day determined by the Bank from time to time. If that day falls on the first day the month and is not a business day, the fee may be collected on the business day in May or November which immediately precedes that day, subject to the decision of the Bank. The fee will also be levied on accounts not holding any securities and upon closure of accounts where the account is closed before the above payment dates.

¹²The safe custody fee is due and payable in June and December every year on a day determined by the Bank from time to time. If that day falls on the first day of the month and is not a business day, the fee may be collected on the business day in May or November which immediately precedes that day, subject to the decision of the Bank. The fee is payable upon closure of accounts where the account is closed before the above payment dates.

Charges for a number of specific services are not included here. All charges are available upon request and are subject to revision without notice.

The Bank does not provide investment advice. Investment involves risk. The price of stocks may move up or down. Losses may be incurred as well as profits made as a result of buying and selling stocks.