Can Australian immigrants invest in stocks?

After many new immigrants arrive in Australia, they often convert RMB into Australian dollars and remit them back to Australia. Apart from the expenses of buying a house and doing business, how to manage the remaining money is also a big problem. This blog will collect some information about Australian investment and financial management for everyone to share. Today I'll talk about stock investment first:

Q: How many stock markets are there in Australia?

A: There is only one common stock exchange in Australia, ASX (Australian Stock Exchange). Futures trading also includes SFE (Sydney Futures Exchange). Ordinary shareholders only buy and sell ASX's ordinary shares through brokers.

Q: How to enter the Australian stock market?

A: Shareholders only need to choose a brokerage firm to conduct stock trading through it, so that it can automatically manage your chess responsibilities.

Q: What are the trading methods of Q:boker?

A: Brokers usually offer two trading methods: telephone and Internet. There are almost no over-the-counter transactions. In addition, broker also provides stock research and recommendation services.

Q: How much does it cost to buy and sell stocks?

A: Different brokers charge different fees. Whether buying or selling, the cost of surfing the Internet is around every 20 yuan, and the cost of telephone is slightly more expensive than surfing the Internet.

Q: How is the stock income taxed?

Answer: If you hold shares for less than one year, the net value-added part (profit minus handling fee) should be fully included in your personal income.

Q: Can stock losses be deducted?

A: Lossy stocks can offset profits, but not personal income. If there is a net loss in that year, the loss can be carried forward to the next year to reduce the profit.

Q: How to save taxes?

A: If you hold shares for more than one year, your net value-added tax belongs to CGT (Capital Gains Tax), and only half of it needs to be included in your personal income.

Q: How to tax dividends?

A: Dividends are only personal income, so it is impossible to apply CGT. In short, taxation is very complicated. I suggest you study it carefully when you fill out the tax bill.

Q: What is the structure of the Australian stock market?

A: The two largest industries in Australia are resources and finance, and the others are industry, media, biochemistry, energy and telecommunications.

Q: Who are the companies in the resource stocks?

A: The representative companies of resource units are BHP Billiton, Rio Tinto, WMC and Brambles. Other small companies are a dime a dozen.

Q: Who are the financial stocks?

A: The representatives of financial stocks are the four major banks and several major insurance companies.

Q: Which IT companies are there?

A: Australia's industry is underdeveloped, and the IT industry is even worse. The bigger MYOB and solution 6 are both out of 100 in listed companies. KAZ was recently acquired by TELSTRA, and Computershare is more correct as a financial company than as an IT company.

Q: What about other industries?

A: The media industry includes Fairfx and several TV stations. NEWS used to be the largest company in Australia, and now it has taken the United States as its main listing place. Anyone in the retail industry can guess woolworth and Colesmeyer.

Q: Which industry is more promising?

A: The only promising thing is the biochemical industry. CSL is the second largest manufacturer of plasma in the world, and cochlea is one of the largest manufacturers of hearing AIDS in the world. Many smaller companies often become famous overnight because of the successful development of new drugs or equipment.

Q: Is the Australian stock market risky?

A: Generally speaking, it is relatively low. Especially compared with the stock markets in China and the United States, the fluctuation range is much smaller.

Q: What is the P/E ratio of the Australian stock market?

The average P/E ratio of the Australian stock market is only 14 times, which is of course related to the huge proportion of financial companies.

Q: Are all stocks so stable?

Judging from individual stocks, the vast majority of stocks are calm. But some stocks can double or fall by half in one day. However, these feats usually have a reason, unlike the China stock market, which allows speculators to speculate.

Q: How to open an online broker?

A: Download the application form from the Internet, fill it out and send it back. It is usually necessary to deposit a certain amount of money (usually several thousand yuan) in the associated account.

Q: Which Internet broker do you recommend?

If you just buy and sell stocks, brokers are all the same. The larger brokers are COMSEC, ETRADE, SANFORD, HSBC and so on. COMSEC is a subsidiary of the Federal Bank. ETRADE and ANZ are partners.

Q: If it's not too much trouble, can you tell me some trading methods (as far as I know, there seems to be automatic buying according to the price) and so on?

A: If it refers to the order type, there are market orders and limit orders.

Q: What is market order?

This is a market list. There is no need to fill in the price. You can buy directly at the current lowest selling price or sell at the current highest buying price.

Q: What is limited order?

A: This is a price limit order. The price of buying or selling is up to you, and of course it may not be possible to make a deal.

Q: Can you recommend some good stocks? It's better to have a smaller denomination

A: The smaller the face value, the easier it is to go bankrupt. The Australian stock market grabs a lot of stocks for a few cents, but no one will recommend these stocks because they are similar to lottery tickets. This is not China. If you go bankrupt, you go bankrupt. Stocks are worthless and no one will save them.

Q: How is the number of buying and selling lots stipulated? Is there a minimum requirement? If so, how much is it?

A: There seems to be no regulation. You can just buy one share. However, because brokers are generally above 20 yuan, it is obviously not cost-effective to do small business.

Q: How to reduce income tax by investing in the stock market?

A: Like investment houses, if the interest generated by investing in the stock market through negative leverage is greater than the dividend income of the stock, then the extra part can offset other income.

Q: What are the ways for negative leverage to invest in the stock market?

There are usually margin loans and protection investment loans.

Q: What is profit tilt?

Answer: That is, you pay a part of your own funds (in stock or cash) and then borrow money from the bank to buy the same stock (the loan generally does not exceed 80% of the total investment, and each stock is different). The interest on this part of the loan is tax-free. However, if the stock price falls within a certain range of the purchase price (usually 5%), the bank will ask you to replenish the funds. The interest rate of margin loan is around 8%, and the term is one to three years.

Q: What is a protected investment loan?

This is a special margin loan. You can borrow 100%, and the stock is guaranteed. So you can only pay interest at most. But the interest is very high (10%-20%), and not 100% is tax deductible (because some of it is used to buy options to preserve value). ATO has a special ruling on each product, and the general tax deduction rate is:

1 year 60%

2 years 72.5%

3 years 80%

4 years 82.5%

5 years 85%