Everything about The Hong Kong Stock Exchange totally explained
The
Hong Kong Stock Exchange (also 港交所; abbreviated as
HKEX; ) is the
stock exchange of
Hong Kong. The exchange has predominantly been the main exchange for Hong Kong where shares of listed companies are traded. More commonly known as the
Hang Seng Index, it's Asia's second largest stock exchange, behind the
Tokyo Stock Exchange.
Hong Kong Exchanges and Clearing is the holding company for the exchange.
History
The history of the securities exchange began formally in the late
19th century with the first establishment in
1891, though informal securities exchanges have been known to take place since
1861. The exchange has predominantly been the main exchange for Hong Kong despite co-existing with other exchanges at different point in time. After a series of complex mergers and acquisitions, HKSE remains to be the core. From
1947 to
1969 the exchange monopolized the market.
| Association of Stockbrokers in Hong Kong (Founded 1891) |
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| (1914) Renamed to Hong Kong Stock Exchange |
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| (1947) A merger is made after World War II with Hong Kong Stock Exchange retaining the name |
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Hong Kong Stockbrokers Association (Founded 1921) |
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| Hong Kong Stockholders Association Ltd (Founded 1978) allow info sharing between HKSE and other exchanges |
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Far East Exchange Ltd (Founded 1969) |
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Kam Ngan Stock Exchange Ltd (Founded 1971) |
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Kowloon Stock Exchange Ltd (Founded 1972) |
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| (1986) HKSE merges with other exchanges and retain the name but also presented as Stock Exchange of Hong Kong |
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Hong Kong Futures Exchange Ltd (Founded 1976) |
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Hong Kong Securities Clearing Company Ltd (Founded 1989) |
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Business
Computers were integrated on April 2,
1986, which has helped modernize the system. In
1993 the exchange launched the "Automatic Order Matching and Execution System" (AMS) that was replaced by the third generation system (AMS/3) in October
2000. Systems as such were added to meet the increased popularity of online Stock trading.
Trading Hours: From 10:00am to 12:30pm and from 2:30pm to 4:00pm
» (Summer: From 10:00pm to 12:30am and from 2:30am to 4:00am New York time)
(Winter: From 9:00pm to 11:30pm and from 1:30am to 3:00am New York time)
Regulatory role
David Webb, independent
non-executive director of the Exchange since
2003, has been arguing for a super regulatory authority to assume that role as regulator, as there's inherent conflict between its commercial and regulatory roles. In the meantime, he argues for improved investor representation on the
Hong Kong Stock Exchange.
In 2007, the uproar by smaller local stockbrokers over the decision by board of directors to cut minimum
trading spreads for equities and
warrants trading at between 25 HK cents and HK$2 caused the new board to vote to reverse the decision. The reforms were to be implemented in the first quarter, but was put back on the table following protests by brokers. Webb criticised the board for caving in to vested interests.
40 Largest Stocks by Market Capitalisation
Source: Bloomberg, in billions of Hong Kong dollars, Data updated on 20 January 2007
- Industrial & Commercial Bank of China - $1,720.49
- PetroChina - $1,713.23
- HSBC Holdings - $1,654.82
- China Mobile - $1,411.83
- Bank of China - $1,175.62
- China Life Insurance - $1,114.84
- China Construction Bank - $1,074.01
- Sinopec Corp - $769.91
- Manulife Financial - $404.27
- Bank of Communications - $392.54
- China Shenhua Energy - $364.51
- Hutchison Whampoa - $342.78
- China Telecom - $317.25
- Standard Chartered - $315.76
- CNOOC - $290.30
- Sun Hung Kai Properties - $249.18
- China Merchants Bank - $245.62
- Cheung Kong Holdings- $244.12
- Ping An Insurance Group of China - $230.77
- Bank of China (Hong Kong) Holdings - $225.73
- Hang Seng Bank - $215.27
- Foxconn International Holdings - $171.45
- CLP Holdings - $140.52
- Swire Pacific - $136.98
- China Communications Construction - $128.69
- China Unicom - $127.27
- China Netcom - $121.84
- MTR Corporation - $116.24
- Esprit Holdings - $98.82
- Hong Kong & China Gas - $96.29
- Henderson Land Development - $94.99
- Hong Kong Exchanges and Clearing - $94.60
- Huaneng Power International - $90.30
- Hutchison Telecommunications International - $89.84
- Hang Lung Properties - $88.23
- Sino Land - $87.78
- Cathay Pacific Airways - $84.21
- Aluminium Corp of China - $84.08
- Air China - $84.02
- Li & Fung - $82.17
Further Information
Get more info on 'Hong Kong Stock Exchange'.
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