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I. Basic Structure of the U.S. Stock Market
U.S. stocks refer to shares traded on major U.S. securities exchanges, with core platforms including:
New York Stock Exchange (NYSE): The world's largest exchange by market capitalization, housing traditional industry giants (such as Walmart, Coca-Cola).
NASDAQ Stock Exchange: Dominated by technology stocks, including innovative enterprises like Apple, Microsoft, and NVIDIA.
Three Major Core Indices:
Dow Jones Industrial Average (DJIA): Composed of 30 blue-chip U.S. stocks, using price-weighted methodology, reflecting the performance of large traditional enterprises.
S&P 500 Index: Covering 500 leading companies across industries, market-cap weighted, regarded as the "barometer" of the U.S. economy.
NASDAQ Composite Index: Including approximately 3,000 listed companies, with technology stocks accounting for over 50% of the weight, exhibiting higher volatility.
II. Trading Rules and Hours
Trading Sessions (Beijing Time):
Regular Trading: Daylight Saving Time 21:30–04:00; Standard Time 22:30–05:00 (corresponding to U.S. Eastern Time 9:30–16:00).
Pre-market Trading: 04:00–09:30 (Daylight Saving Time) / 05:00–10:30 (Standard Time).
After-hours Trading: 16:00–20:00 (Daylight Saving Time) / 17:00–21:00 (Standard Time).
Trading Mechanisms:
T+0 Trading: Multiple buy and sell transactions allowed on the same day without restrictions.
No Daily Price Limits: Price fluctuations have no upper or lower limits, with both risks and rewards present.
Order Types: Market orders, limit orders, stop-loss orders, stop-limit orders, etc., supporting complex strategies.
III. Account Opening Process and Broker Selection
Chinese investors can open accounts through the following compliant channels:
Account Opening Channel Representative Platforms Advantages Disadvantages
Internet Brokers Futu, Tiger Brokers, Webull Chinese interface, zero commission, support RMB funding, one-click currency exchange Service relies on platform stability, some features limited
Domestic Broker Hong Kong Subsidiaries Huatai International, CITIC CLSA Strong compliance, funds under domestic regulatory supervision Higher commissions (0.1%–0.3%), compounded exchange costs
QDII Funds Guangfa NASDAQ-100 (270042), E Fund China Internet (513050) No account opening required, minimum investment 1,000 RMB, avoids foreign exchange quota limits Cannot select stocks independently, high management fees (1%–2% annually)
Required Materials for Account Opening:
Valid Passport (National ID card not accepted)
Proof of Address (utility bills, credit card statements)
W-8BEN Form: Non-U.S. Resident Tax Declaration, used to benefit from Sino-U.S. tax treaty, reducing dividend withholding tax from 30% to 10%
IV. Core Investment Tools and Terminology
Individual Stocks: Direct purchase of shares in a single company (such as AAPL, TSLA), high returns but concentrated risks.
ETFs (Exchange-Traded Funds):
VOO: Tracks S&P 500, expense ratio 0.03%, suitable for long-term holding.
QQQ: Tracks NASDAQ-100, focuses on technology leaders, historical annualized return approximately 22.9%.
VTI: Covers 4,139 companies across the U.S. market, diversifies risks.
Key Terminology:
EPS (Earnings Per Share): Net Profit ÷ Total Shares Outstanding, measures profitability.
PE (Price-to-Earnings Ratio): Stock Price ÷ EPS, valuation metric; lower than industry average may indicate undervaluation.
Dividends: Company distribution of profits to shareholders; some ETFs (such as VYM) provide stable cash flow.
Margin Account: Can borrow funds to amplify positions (up to 4 times), but must maintain 25% margin requirement.
V. Taxes and Fund Management
Tax Obligations:
Dividend Tax: 10% under Sino-U.S. treaty (requires correct W-8BEN completion).
Capital Gains Tax: U.S. does not levy on non-residents, but Chinese residents must declare foreign investment income according to law (Personal Income Tax Law Article 8).
Fund Transfers:
Annual Foreign Exchange Purchase Quota: 50,000 USD per person per year, must be declared through official banking channels for purposes such as "private travel," strictly prohibiting split purchases.
Deposit Methods: Wire transfer (fees 15–40 USD), binding Hong Kong bank cards (Futu supports fee-free).
Minimum Deposit: Most internet brokers have no threshold; Interactive Brokers (IBKR) recommends initial deposits of $2,000 or more.
VI. Beginner Recommendations and Risk Warnings
Starting Strategy:
Prioritize Investment in Broad-based ETFs (such as VOO, QQQ), avoid individual stock timing traps.
Use Dollar-Cost Averaging to smooth market volatility and reduce emotional interference.
Risk Warnings:
Exchange Rate Risk: Fluctuations in RMB/USD exchange rate directly impact actual returns.
Policy Risk: Chinese stocks face Sino-U.S. regulatory uncertainties (such as audits, delistings).
Leverage Risk: Margin accounts may trigger forced liquidation; new investors should exercise caution.
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BIYA GLOBAL LLC
BIYA GLOBAL LLC is a licensed entity registered with the U.S. Securities and Exchange Commission (SEC No.: 802-127417); a certified member of the Financial Industry Regulatory Authority (FINRA) (Central Registration Depository CRD No.: 325027); regulated by the Financial Industry Regulatory Authority (FINRA) and the U.S. Securities and Exchange Commission (SEC).
BIYA GLOBAL LLC is a licensed entity registered with the U.S. Securities and Exchange Commission (SEC No.: 802-127417); a certified member of the Financial Industry Regulatory Authority (FINRA) (Central Registration Depository CRD No.: 325027); regulated by the Financial Industry Regulatory Authority (FINRA) and the U.S. Securities and Exchange Commission (SEC).
BIYA GLOBAL LLC
BIYA GLOBAL LLC is registered with the Financial Crimes Enforcement Network (FinCEN), an agency under the U.S. Department of the Treasury, as a Money Services Business (MSB), with registration number 31000218637349, and regulated by the Financial Crimes Enforcement Network (FinCEN).
BIYA GLOBAL LLC is registered with the Financial Crimes Enforcement Network (FinCEN), an agency under the U.S. Department of the Treasury, as a Money Services Business (MSB), with registration number 31000218637349, and regulated by the Financial Crimes Enforcement Network (FinCEN).
BIYA GLOBAL LIMITED
BIYA GLOBAL LIMITED is a registered Financial Service Provider (FSP) in New Zealand, with registration number FSP1007221, and is also a registered member of the Financial Services Complaints Limited (FSCL), an independent dispute resolution scheme in New Zealand.
BIYA GLOBAL LIMITED is a registered Financial Service Provider (FSP) in New Zealand, with registration number FSP1007221, and is also a registered member of the Financial Services Complaints Limited (FSCL), an independent dispute resolution scheme in New Zealand.
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