1. Different transaction fees

Whether holding Alibaba Hong Kong stocks or US stocks, the most significant difference is the holding fee of ADR.

In 2014, Alibaba was listed on the New York Stock Exchange in the United States, raising funds by issuing ADS (American Depositary Shares). During the issuance and cancellation of ADS, investors need to pay a handling fee, which does not exceed US$0.05/ADS. Other fees that investors need to bear include handling fees for cash or dividend distributions, and custody fees for underlying securities in custodian institutions. For investors who directly purchase Alibaba Hong Kong stocks, this part of the fee can be saved.

2. Different trading hours

The trading hours of Hong Kong stocks are more convenient for Chinese institutions and investors. The usual trading hours of Hong Kong stocks are from 9:30 am to 12:00 pm, and the lunch time is from 1:00 pm to 4:00 pm. The trading hours of US stocks are from 9:30 to 16:00 Eastern Time, which is 22:30 to 5:00 the next day Beijing Time. In summer, it will be one hour earlier. The most intuitive difference between the two is that the trading hours of Hong Kong stocks are more convenient for Chinese and even Asian investors and investment institutions. Don't underestimate such a convenience. Domestic policies related to Alibaba and major changes in the company's affairs usually occur or are announced during the trading period of Hong Kong stocks. This is very important for investors and institutions that need to respond in a timely manner.

3. Differences in information acquisition

Hong Kong stock financial reports usually comply with international reporting standards, and most of them have traditional Chinese versions, which are more convenient for mainland investors to read. Unlike US stocks, listed companies usually have a conference call after the financial report, and many investment bank analysts will ask about relevant financial and operating matters at the meeting. Hong Kong stocks have a special performance release conference every year. The performance release conference of Hong Kong stocks is not only open to brokerage analysts, but also to small shareholders and the media. Through direct communication with management, well-prepared investors can even obtain operating information that is not disclosed in the financial report.