How to buy Tencent shares

I can see you can buy ADR in Alibaba via NYSE: BABA in USD

I had seen a Tencent holdings ADR OTCMKTS: TCEHY. But looking onto this it seems to be “over-the-counter securities” which seems to be a broker-dealer network as opposed to a centralised exchange like the Nasdaq and NYSE

“pink sheet platform has no requirements from the SEC to file financial information, and for this reason, are seen as higher risk securities. Pink Sheets is a private listing company for over-the-counter securities.”

There seems to be warnings on liquidity, but seem to apply to small companies

On a given day, the total dollar volume can exceed $1.2 billion with over 6 billion shares trading hands. Companies listed via pink sheets include:

-Tencent Holdings LTD (TCEHY), the Chinese multimedia company
-Nestle SA (NSRGY), the food and beverage giant
-Bayer A.G. (BAYRY), a health care company

Large companies such as Tencent Holdings have a significantly higher trading volume than smaller companies making the larger companies more liquid and easier to trade. For example, March 22, 2019, Tencent Holdings had 4.2 million shares traded while a small pink sheet company called Pacific Software (PFSF) only traded 200 shares for the same day with a daily price range of only 20 cents.

Has anyone dealt with this market or purchased these Chinese tech companies other ways?

it seems:

ADRs

  • TCEHY in $ on the OTC Market
  • NNN1 in euros on several European markets

Ordinary Shares

  • 0700 in HKD on the SEHK
  • NNND in euros on several European markets (I believe are ordinary shares, correct me if wrong, but it does not seem easy to determine)

For me I think I will go with NNND, as ordinary shares they should have voting rights and dividends and hopefully not be susceptible to Chinese government policy which could decide the ADRs are worth nothing. Also, I think I am likely to use left over euros from trades more than HKG.

If anyone can suggest a cheap way of buying shares in euros it would be useful. I was thinking Fineco maybe cheapest?

My experience with trading foreign shares on European markets is that they have really poor spreads. Always choose the most liquid security format for your investment. It will most probably cost you less to exchange currency to HKD through IB.

Also keep in mind that Tencent is by far the largest Emerging Market company, and makes for 4.42% of Vanguard VWO or 4.25% of Ishares EIMI.

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