Buy Huawei Shares: Complete Guide And Analysis
Published: November 6th, 2020 by Valentina
If we think about the major smartphone producers in the world, the first companies that come to mind are the American, Korean and now also Chinese giants. Starting to Buy Huawei shares could be an interesting investment opportunity, but is it feasible?
This guide wants to clarify all doubts about the Chinese giant. OnlineTradingCourse.net is a point of reference for investors who seek impartial information on the markets – in this case on the Huawei share.
China is a very particular market, with a booming economy but not always within the reach of foreign investors. For this reason, we try to understand how the local market works in order to evaluate how to invest.
By reading this review, you will get a very clear picture about Huawei shares and about real investment possibilities. We begin with a list of safe brokers, authorized by FCA, suitable for investing on the Chinese market. Among these, eToro, the industry leader, stands out.
Min. Deposit: 50€
Min. Deposit: 100€
Min. Deposit: 10€
Min. Deposit: 250€
Min. Deposit: 100€
Min. Deposit: 250€
Buy Huawei Shares: History and Development
Huawei Technologies was founded in 1987 in Shenzhen, China. Initially, it was a reseller of telephone services for large cable networks created by large multinationals in Hong Kong.
Between 1996 and 1998, Huawei grew in the metropolitan areas of China following the incredible demographic expansion of this country.
Estimates reveal that the Chinese urban population will reach one billion individuals by 2030 and there will be 221 cities with over one million inhabitants by 2025 – compared to 35 in the whole of Europe.
These megacities require complex communication networks and Huawei has continued to grow at a surprising rate by expanding and meeting this need.
Currently, Huawei products and services are distributed in over 170 countries and serve more than a third of the global population.
Huawei is the world’s third largest manufacturer of routers, switches, and other telecommunication equipment after Alcatel-Lucent and Cisco. The brand has recently joined the ultra competitive smartphone race.
Huawei has apparently come out of nowhere to become one of the most important technology brands in the world.
The main customers of the Chinese giant include telephone and Internet operators, which use Huawei services for their customers, but without using the Huawei brand.
Since one fifth of the world’s population is located in China, Huawei has been able to grow a lot without getting noticed by the rest of the world to the point of exploding and conquering many other countries.
Where to buy Huawei shares?
But here is the practical question: Where to buy Huawei shares?
Unlike the main stocks, this Chinese giant is not “public”, but belongs to the employees of the company itself. It is a sort of “cooperative” and to buy company shares, you must be a Huawei employee in China.
But there is another solution: You can invest indirectly on this stock by choosing the right intermediary, which allows you to make investments without paying commissions and in a simple way.
The ideal financial instrument are CFDs (Contracts for Difference), derivatives that replicate the price of shares and allow you to invest (up or down) without paying trading commissions.
CFDs are regulated contracts like Bonds, ETFs, Bonds, etc. Therefore, they are completely safe.
Buy Huawei shares with the best brokers
These CFD contracts are proposed by the main online brokers that we will here briefly describe. These are safe and reliable intermediaries, all authorized by FCA and other European control bodies.
The main advantages of CFD brokers are:
- They can be traded directly online in total security.
- Use of financial leverage, a multiplier that allows – for example – to negotiate with 3,000 euros having only 100 in the account.
- It is possible to invest both upwards and downwards and earn (if the forecast is correct) in any market scenario.
- No commissions and the minimum deposit is between 100 and 250 euros.
But there is also a disadvantage: Since you do not really get hold of the shares, you do not participate in stock dividends, but speculate on price changes.
Obviously, in the case of Huawei, dividends would not be an option that allow to access this market.
We have selected the 3 best brokers in order to invest in Huawei shares (not directly). These are safe, authorized, and regulated, with peculiarities and services that make them more or less suitable for any type of trader.
eToro: Ease of use and Automatic Trading
eToro is the most popular online broker and its 7 million active users demonstrate its reliability.
As anticipated in the previous paragraph, eToro is registered with FCA and authorized throughout Europe by CySEC.
With its intuitive trading platform, it is possible to trade on many stocks and assets that are part of the Chinese economy and it allows you also to indirectly follow the Huawei stock, such as the FTSE ChinaA 50 index.
But the tool that made eToro famous is its automatic trading feature, called Copy Trading, which allows you to copy the transactions of the best traders in the world (on eToro) in a totally automatic and free way.
Copy Trading works like this:
- Register on eToro
- In the section “people”, you can choose the traders to copy based on the performance.
- With a click, Copy Trading will copy exactly the same operations of the chosen traders in your account.
- At this point, you will get the same returns as these trading experts (of course, in proportion to your investment), without doing anything else.
Below, you can see some of the eToro Traders that can be copied.
Both Copy Trading as well as traditional trading can also be tested on a free Demo account, without taking real risks.
For more details you can read our full eToro review.
ForexTB: Excellent Course and Free Trading Signals
ForexTB is a well-known broker in the CFD market, especially thanks to all the services offered.
Its trading platforms are highly appreciated and are able to satisfy any investor:
- The web platform is easy to use and can be entered from any browser without downloading any software.
- The famous Metatrader 4, on the other hand, is more technical and meets the needs of the more experienced traders.
ForexTB considers the training of its users of primary importance; therefore, it has developed a free trading course in ebook format, which allows you to learn the basics of trading in a simple and clear way.
Further support is provided by the famous Trading Signals that ForexTB offers free to its users. These are very reliable operational signals found by Trading Central, which are sent automatically to the trader when the conditions for investing in a specific asset are present.
Trade.com: Small investments and Free training
Trade is one of the most well-known brokers in the world. Its very professional platform has made it one of the most appreciated in the sector.
It is regulated by the FCA for the United Kingdom market; a very restrictive supervisory body.
This broker knows very well that traders who earn steadily are those who know the technical analysis very well and apply it in a disciplined way.
For this reason, it created a training archive very rich in content. It is divided into three sections: basic, intermediate, advanced. In this way, you can choose the most suitable content for your level of preparation and experience.
A limit that sometimes discourages novice traders, is the minimum deposit threshold required for opening a trading account.
With Trade.com, you can open an account with only 100 euros. Therefore, it is suitable for small investments.
Those who do not want to risk, can take advantage of the free Demo account provided by the broker.
Buying Huawei shares: Analysis
Huawei is a Chinese producer that stands out as one of the world’s largest smartphone manufacturers and the largest telecommunication equipment manufacturer.
Starting in the third quarter of 2019, Huawei acquired 18% of the smartphone market share, surpassing Apple and positioning itself immediately after Samsung – according to a report by Counterpoint.
However, the United States has completely blocked Huawei from the installation of its telecommunication equipment in the territory and has limited its use of American softwares and hardwares.
Despite having virtually no presence on the U.S. market, Huawei has experienced remarkable growth. For this reason, many are interested in buying Huawei shares. But how can this be done? What advice should beginner traders follow?
Can you invest in Huawei?
Huawei is a private company which is owned by its 96,768 employees. This means that this Chinese company is not open to trading in public shares.
Many believe that it is actually owned by the Chinese government, but this does not change much for investors, who cannot purchase Huawei shares anyway.
Theoretically, in order to buy Huawei shares, you should settle in China and become an employee of Huawei. A little complicated, isn’t it?
Huawei sells bonds to international investors, but they are difficult to find in the case of small investors.
So, you cannot invest directly on the Huawei stock…but here are the alternatives.
Alternatives to Huawei
Ther are other investments that allow you to gain profit from the growth of the smartphone market, the growth of China, and the worldwide expansion of technological progress.
Many of Huawei’s competitors are publicly listed and have performed well in recent years.
The alternatives to investing in Huawei can be:
- China Mobile
- FTSE China A50 index
- Other Chinese Indices
- Hang Seng index
Chinese indices can offer a more balanced investment to the Asian country market than individual stocks.
Is it worth to buy Huawei shares?
As we said, the Huawei stock is held privately by the Chinese employees (or the Chinese government) and even anyone who works for the company outside of China cannot buy its shares.
Shareholders receive dividend payments and have performance bonuses, but international investors do not have access to these benefits. The stock is certainly interesting and it is not sure if in the near future there is will the possibility to negotiate it with CFD Trading.
To answer the question: buying Huawei shares is worth it, but currently not possible.
Buy Huawei shares: Forecast
Currently, the Huawei stock is very cheap and, according to analysts, it is likely to resume value in the coming months, if the China-US “trade war” reaches a situation of mutual understanding.
Huawei has quickly become one of the largest smartphone manufacturers in the world, surpassing Apple and reaching the power of Samsung. But Huawei is not listed on the stock exchange market, leaving investors unable to “cash in” on the company’s growth.
A tense relationship between the company and the United States government further complicates the possibility for those wishing to invest in this Chinese company.
As we have seen, there are valid alternatives to invest in the Chinese economy and in the technology sector in particular, and for now this is the only way to “invest in the Huawei stock”.
Once chosen the alternative to Huawei shares, you must choose the most suitable investment broker among those with regular FCA authorization.
In order to practice, it is better to start with a free Demo account. In this way, you can test strategies and trading platforms without taking risks.
- Practice the eToro Demo account for free by clicking here
- Register for free on ForexTB and access the Demo account from this link
- Access the Trade.com Demo account for free from this link
Huawei is not listed on the stock exchange market and in order to buy Huawei shares you need to invest on the Chinese market.
No, you cannot invest directly on Huawei because it is a private company.
You can invest in Huawei’s Chinese competitors which are listed on the stock exchange or on the most representative Chinese indices.
eToro is the most suitable vroker to invest in the Chinese market and the only one that offers automatic Copy Trading.