Transaction tax in HK is 0.1%, I'm not sure how you figured out it was on top of a similar tax in China for H shares. As of Baidu I wonder how it works in Chinese, i use it in English on some devices where it is the default search engine and it's a disaster. Supposed to work much better in Chinese though, it's possible as you say this comparison list just doesn't exist.
If the comparison list does NOT exit (or intentionally hide by government), the only way to know it is call >100 brokers separately. China is not as open as US and other countries so that one need enormous time to search what we want to know. Furthermore, if one has significant trading logic with confident return rate and if he lives in 40% of CapGainTax rate (like US), why don't he fly to country like China with NO CapGainTax. Of course we should simulate tax amount (next 30 or 50 years) for China transaction tax rate of 0.1%(???), under his profitable trading logic. Some logic gives you more than several 100K's if you fly to China, more than buying several house.
Furthermore, it is possible that two logics A and B gives same before-tax return rate. However, 1) Logic A may be profitable in China and below water in US. 2) Logic B may be profitable in US(40% of CapGain) and below water in China(0.1% of transaction) depending on how often he trade. If Sanders win the campaign for new 0.25% of transaction trading tax, then very few than before can survive in the long-run, I guess. Many traders should change his/her logic if tax system is changed.
Holy Dimsum... what do you think is the transaction tax on a chinese resident when he trades US listed stocks, say AAPL ?
I heard that those in Asia countries pay CapGain tax to his government, for US stocks profit like AAPL. Also most Asia does NOT charge as much as US 40% for CapGain. Roughly 20% or so, if I heard correctly.
Cap gain tax would depend on the regulation in one's country of residence, not only in Asia, that part of your reasoning is right. But what about the transaction tax? You seem to add the chinese transaction tax to a chinese resident who would trade US stocks. Do you think if a chinese resident trades AAPL he will pay 0.1% transaction tax on top of his brokerage commission ?
The tax is 0.1%, you only pay for selling. AFAIK, the lowest commission is 0.02% single way, you have to negotiate to get this rate, you can get 0.03% online directly. I don't think the Chinese stock market is open to foreign individuals. But why do you want to trade Chinese stocks? No short selling, no options, no intro-day trading, no stop orders, no nothing... In bear market, everyone loses, and the bear market is 5 times longer than bull market.
Good to hear from you. Therefore 0.1+2*0.02=0.14% is the lowest tax+comm among the Chinese brokers? Would you please let me know their name and website? Also, instead of 0.04% for roundtrip, if there is only 0.03% (roughly 3/4) online broker, would you please tell me their name and website? Thanks in advance.
I heard it too. However, like most Asian countries, China will open the market in a few years. There is no Chinese law that they will not open forever.
http://www.htsc.com.cn One is enough, this is the biggest one unknown as low commission and good online service.