What is the Hong Kong Stock Exchange (HKG)

The Hong Kong Stock Exchange (HKG) is a stock exchange based in Hong Kong. Known formally as the Stock Exchange Hong Kong, the Hong Kong Stock Exchange is one of the world's largest securities markets by market capitalization. It is owned and operated as a subsidiary of 澳洲幸运5官方开奖结果体彩网:Hong🦋 Kong E✃xchanges and Clearing Limited (HKEX), which was established as a holding company in 2000. The exchange lists different securities, including equities and debt securities among others.

Understanding the Hong♏ Kong Stock Exchange (HKG)

The Hong Kong Stock Exchange is one of the primary exchanges in Hong Kong and is one of the largest markets in Asia. As noted above, it is a 澳洲幸运5官方开奖结果体彩网:subsidiary of the 澳洲幸运5官方开奖结果体彩网:holding company HKEX. The company also owns and operates the Hong Kong Futures Exchange and the Hong Kong Securities Clearing Company. HKEX had a combined 澳洲幸运5官方开奖结果体彩网:market capitalization of $3.97 trillion as of January 2024.

The exchange is home to different securities that investors can choose from, including equities, debt securities, derivatives, 澳洲幸运5官方开奖结果体彩网:exchange-traded products (ETPs), 澳洲幸运﷽5官方🌠开奖结果体彩网:real estate investment trusts (REITs), and warrants. As of January 2024, there were 2,609 listed on HKEX subsidiaries, including the HKG. This figure includes 2,428 domestic and 181 foreign companies.

Several of the major companies by market cap listed on the exchange are banks and insurance companies from mainland China. They include the Industrial and Commercial Bank of China, China Construction Bank, Bank of China, and Ping An Insurance. Chinese internet 澳洲幸运5官方开奖结果体彩网:conglomerate Tencent Holdings stands far above the crowd in the top position.

Securities trading takes place Monday to Friday between 9:30 a.m. and  4:00 p.m. local time. The pre-opening session runs between 9:00 a.m. and 9:30 a.m., while the 澳洲幸运5官方开奖结果体彩网:after-hours trading session runs from 4:00 p.m. to "a random closing between 4:08 p.m. and 4:10 p.m." Derivative trading begins at 9:15 a.m. and ends at 4:30 p.m. Several 澳洲幸运5官方开奖结果体彩网:derivative markets take a break at noon each day. After-hours trading runs between 5:15 p.m. and 3 a.m. the following day. The exchange is closed on major holidays.

Special Considerations

The HKG is the leading venue to raise capital for issuers based in Hong Kong and mainland China. Growth in Hong Kong's markets is fueled by listings of mainland Chinese companies. These securities are referred to as H-shares on the HKG. Their rapid development has gone hand-in-hand with the enormous economic rise of t🥂he country.

The minimum market capitalization for a listing is HK$500 million and the minimum value of public float is HK$125 million. The exchange raised these minimum amounts in 2017 to strengthen trading liquidity for market participants and enhance the quality of the exchange's listed issuers.

History of the HKG

澳洲幸运5官方开奖结果体彩网:Securities trading in Hong Kong dates back to 1891. That's when the first formal market, called the Stockbrokers' Association of Hong Kong was established. The organization's name was changed to the Hong Kong Stock Exchange in 1914.

Seven years later, regulators incorporated another exchange called the Hong Kong Stockbrokers' Association. It merged with the Hong Kong Stock Exchange in 1947, resuming operations under that name. The exchange introduced automated ordering in 1993 and 澳洲幸运5官方开奖结果体彩网:options trading in 1995.

As noted above, the HKG merged with the Hong Kong Futures Exchange and the Hong Kong Securities Clearing Company in 2000 to form Hong Kong Exchanges and Clearing, a 澳洲幸运5官方开奖结果体彩网:publicly traded company.

The exchange had a physical 澳洲幸运5官方开奖结果体彩网:trading floor until the popularity of electronic trading took over. As such, the stock exchange closed down the physical trading floor in 2017.

The Bottom Line

The Hong Kong Stock Exchange was established in the late 1800s. Since then, it has evolved to become one of the most important markets in Asia and in the world. The exchange is home to companies in Hong Kong and mainland China, and also lists other securities like derivatives anꦜd warrants.