Introduction
US stocks have become the preferred choice for many Hong Kong investors looking to diversify their investments in recent years. Different from the Hong Kong stock market, the US stock market primarily trades on the New York Stock Exchange (NYSE), Nasdaq, and the American Stock Exchange. With a higher total number of listed companies compared to Hong Kong, it stands as the world's largest market. The US stock market boasts high trading volumes, extensive liquidity, extended pre-market and after-hours trading hours, and possibly lower entry fees compared to Hong Kong.
Development Overview
The US securities market originated in the late 18th century, and in 1790, the first stock exchange, the Philadelphia Stock Exchange, was established, marking the formal beginning of the US capital market.
Subsequently, as the US economy experienced robust growth, the US securities market emerged as a global powerhouse, becoming the largest capital market globally. As of the end of 2021, the number of listed companies on various stock exchanges exceeded 6,000, with a total market capitalization exceeding $50 trillion.
Additionally, the US securities market encompasses a wide range of financial products, including funds, bonds, futures and options, forex, and digital currencies, covering almost all major capital markets globally.
Current Status of US Stocks
In the 12 years following the last financial crisis, the Nasdaq index has grown nearly sixfold, the Dow Jones Industrial Average (Dow) and the S&P 500 have grown almost threefold, marking one of the longest bull markets in history. In 2019, amidst trade tensions, yield curve inversions, and Federal Reserve rate cuts, US stocks continued to break new records. As of December 31, 2019, the Dow increased by 22.34%, Nasdaq by 35.23%, and the S&P 500 by 28.88%. Chinese companies listed on the US stock market include blue-chip giants such as Alibaba, Bilibili, Pinduoduo, and Baidu, as well as newly listed companies like Luckin Coffee and NIO.