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Hong Kong Stock Exchange

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Hong Kong Stock Exchange



 
 
The Hong Kong Stock Exchange (also (HKEX), ) is the stock exchange
Stock exchange

A stock exchange, securities exchange or bourse is a corporation or mutual organization which provides "trading" facilities for stock brokers and trader s, to trade stocks and other security ....
 of Hong Kong
Hong Kong

Hong Kong , officially the Hong Kong Special Administrative Region, is a territory located in Southern China in East Asia, bordering the province of Guangdong to the north and facing the South China Sea to the east, west and south....
. The exchange has predominantly been the main exchange for Hong Kong where shares of listed companies are traded. It is Asia
Asia

Asia is the world's largest and most populous continent. It covers 8.6% of the Earth's total surface area and, with over 4 billion people, it contains more than 60% of the world's current human population....
's third largest stock exchange in terms of market capitalization
Market capitalization

Market capitalization/capitalisation is a measurement of corporate or economic wealth equal to the share price times the number of shares outstanding of a public company....
, behind the Tokyo Stock Exchange
Tokyo Stock Exchange

The , or TSE, located in Tokyo, Japan, is the second largest stock exchange market in the world by market value, second only to the New York Stock Exchange....
 and the Shanghai Stock Exchange
Shanghai Stock Exchange

The Shanghai Stock Exchange is a People's Republic of China stock exchange or bourse that is based in the city of Shanghai. It is one of the three stock exchanges operating independently in the People's Republic of China, the other two are the Shenzhen Stock Exchange and the Hong Kong Stock Exchange....
. As of 31 December 2007, the Hong Kong Stock Exchange had 1,241 listed companies with a combined market capitalization of $2.7 trillion.






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Encyclopedia


The Hong Kong Stock Exchange (also (HKEX), ) is the stock exchange
Stock exchange

A stock exchange, securities exchange or bourse is a corporation or mutual organization which provides "trading" facilities for stock brokers and trader s, to trade stocks and other security ....
 of Hong Kong
Hong Kong

Hong Kong , officially the Hong Kong Special Administrative Region, is a territory located in Southern China in East Asia, bordering the province of Guangdong to the north and facing the South China Sea to the east, west and south....
. The exchange has predominantly been the main exchange for Hong Kong where shares of listed companies are traded. It is Asia
Asia

Asia is the world's largest and most populous continent. It covers 8.6% of the Earth's total surface area and, with over 4 billion people, it contains more than 60% of the world's current human population....
's third largest stock exchange in terms of market capitalization
Market capitalization

Market capitalization/capitalisation is a measurement of corporate or economic wealth equal to the share price times the number of shares outstanding of a public company....
, behind the Tokyo Stock Exchange
Tokyo Stock Exchange

The , or TSE, located in Tokyo, Japan, is the second largest stock exchange market in the world by market value, second only to the New York Stock Exchange....
 and the Shanghai Stock Exchange
Shanghai Stock Exchange

The Shanghai Stock Exchange is a People's Republic of China stock exchange or bourse that is based in the city of Shanghai. It is one of the three stock exchanges operating independently in the People's Republic of China, the other two are the Shenzhen Stock Exchange and the Hong Kong Stock Exchange....
. As of 31 December 2007, the Hong Kong Stock Exchange had 1,241 listed companies with a combined market capitalization of $2.7 trillion. Hong Kong Exchanges and Clearing
Hong Kong Exchanges and Clearing

Hong Kong Exchanges and Clearing Limited is the stock exchange of Hong Kong. HKEx is the holding company for The Stock Exchange of Hong Kong Limited , Hong Kong Futures Exchange Limited and Hong Kong Securities Clearing Company Limited....
 is the holding company
Holding company

A holding company is a company that owns other companies' outstanding stock stock. It usually refers to a company which does not produce goods or services itself, rather its only purpose is owning shares of other companies....
 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
World War II

World War II, or the Second World War , was a global military conflict which involved a Participants in World War II, including all of the great powers, organised into two opposing military alliances: the Allies of World War II and the Axis powers....
 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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(2000) Hong Kong Exchanges and Clearing
Hong Kong Exchanges and Clearing

Hong Kong Exchanges and Clearing Limited is the stock exchange of Hong Kong. HKEx is the holding company for The Stock Exchange of Hong Kong Limited , Hong Kong Futures Exchange Limited and Hong Kong Securities Clearing Company Limited....
 becomes the holding company for Hong Kong Stock Exchange

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Hong Kong Futures Exchange Ltd (Founded 1976)
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Hong Kong Securities Clearing Company Ltd (Founded 1989)


Business

Computers were integrated on 2 April 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 10:00 to 12:30 and from 14:30 to 16:00

Regulatory role

David Webb
David Michael Webb

David Michael Webb, usually known as David Webb, is a well-known activist and share market analyst in Hong Kong. He is a retired Investment Banker, and now devotes his time to corporate governance advocacy and researches on small companies listed on the Hong Kong Stock Exchange, and is frequently called upon by the media to comment on...
, independent non-executive director
Non-executive director

A non-executive director or outside director is a member of the board of directors of a company who does not form part of the executive management team....
 of the Exchange since 2003, has been arguing for a super regulatory authority to assume that role as regulator, as there is inherent conflict between its commercial and regulatory roles. In the meantime, he argues for improved investor representation on the Hong Kong Stock Exchange
Hong Kong Stock Exchange

The Hong Kong Stock Exchange is the stock exchange of Hong Kong. The exchange has predominantly been the main exchange for Hong Kong where shares of listed company are traded....
.

In 2007, the uproar by smaller local stockbrokers over the decision by board of directors to cut minimum trading spreads
Bid-offer spread

The bid/offer spread for securities is the difference between the price quoted by a market maker for an immediate sale and an immediate purchase ....
 for equities and warrants
Warrant (finance)

In finance, a warrant is a security that entitles the holder to buy stock of the company that issued it at a specified price, which is usually higher than the stock price at time of issue....
 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.

Trading Characteristics


  • The trading day is divided into a morning and an afternoon session, with a two-hour lunch break in between. The morning session is from 10:00 am to 12:30 pm and the afternoon session is from 2:30 pm to 4:00 pm, local time. Traders based in other countries should note that Hong Kong does not have daylight saving time
    Daylight saving time

    Daylight saving time is the convention of advancing clocks so that afternoons have more daylight and mornings have less. Typically clocks are adjusted forward one hour near the start of spring and are adjusted backward in autumn....
     when converting these times to their own time zone.


  • It is perfectly normal for Hong Kong stocks of even well-known companies to trade at prices that correspond to less than HK$4 a share. A Hong Kong stock would not be considered a penny stock unless its price was less than about HK$ 0.50.


  • In Hong Kong, each stock has its own individual board lot size (an online broker will usually display this along with the stock price when you get a quote), and it may not be possible to buy in other than multiples of the board lot size.


  • There is a close-in-price rule for limit orders, which must be within 24 ticks of the current price. Individual brokers may impose an even stricter rule; for instance, HSBC requires limit orders to be within 10 ticks of the current price. Thus it is not possible to exploit volatility by placing a lowball limit order in the hope that it might be hit before the end of a trading session.


  • Broker commissions in Hong Kong are comparatively high, though recently Interactive Brokers LLC has entered the HK Brokerage market with a minimum brokerage commission of only HK18 (~US$ 2.3).


40 Largest Stocks by Market Capitalisation

Source: Bloomberg, in billions of Hong Kong dollars, Data updated on 20 January 2007

  1. Industrial & Commercial Bank of China
    Industrial and Commercial Bank of China

    Industrial and Commercial Bank of China is the largest of People's Republic of China's "Big Four " state-owned commercial banks . It is the largest bank in the world in terms of market value and one of the world's top ten banks by assets....
     - $1,720.49
  2. PetroChina
    PetroChina

    PetroChina Company, Limited is a China oil company and is the listed arm of state-owned China National Petroleum Corporation , mainland China's biggest producer of oil....
     - $1,713.23
  3. HSBC Holdings
    HSBC

    HSBC Holdings plc is a public limited company incorporated in England and Wales, headquartered in London. As of 2008, it is both the world's largest banking group and the world's largest company according to a composite measure by Forbes magazine....
     - $1,654.82
  4. China Mobile
    China Mobile

    China Mobile Communications Corporation , also known as China Mobile or CMCC, is the largest mobile phone operator in China. It is the List of mobile network operators mobile phone operator ranked by number of subscribers, with 415 million customers ....
     - $1,411.83
  5. Bank of China
    Bank of China

    company_name = Bank of China Limited|company_logo = |company_type = Public company , |company_slogan =|foundation = 1912 in Republic of China...
     - $1,175.62
  6. China Life Insurance
    China Life Insurance Company

    The China Life Insurance Company Limited , , ) is a Beijing-based China-incorporated company that provides life insurance and Annuity products....
     - $1,114.84
  7. China Construction Bank
    China Construction Bank

    The China Construction Bank is one of the 'Big four banks' banks in the People's Republic of China. To date, it is ranked as the nation's second largest and the 4th largest in the world by market capitalization....
     - $1,074.01
  8. Sinopec Corp
    Sinopec

    company_name = China Petroleum and Chemical Corporation???? | company_logo = | company_type = Public company | foundation = 2000|...
     - $769.91
  9. Manulife Financial
    Manulife Financial

    Manulife Financial Corporation , also known as The Manufacturers Life Insurance Company, is a major Canada Insurance company and financial services provider....
     - $404.27
  10. Bank of Communications
    Bank of Communications

    Bank of Communications Limited was founded in 1908 and emerged as one of the first few major national and note-issuing banks in the early days of the Republic of China....
     - $392.54
  11. China Shenhua Energy - $364.51
  12. Hutchison Whampoa
    Hutchison Whampoa

    Hutchison Whampoa Limited or HWL of Hong Kong is a Fortune 500 company and one of the largest companies listed on the Hong Kong Stock Exchange....
     - $342.78
  13. China Telecom
    China Telecom

    China Telecom Corp. Ltd. is the largest fixed line service and mobile telecommunication provider in the People's Republic of China....
     - $317.25
  14. Standard Chartered
    Standard Chartered Bank

    Standard Chartered Bank is a United Kingdom bank headquartered in London with operations in more than seventy countries. It operates a network of over 1,700 branches and outlets and employs 73,000 people....
     - $315.76
  15. CNOOC - $290.30
  16. Sun Hung Kai Properties
    Sun Hung Kai

    Sun Hung Kai Properties Ltd. is a listed corporation based in Hong Kong. The company is controlled by the family trust set up by Kwok Tak Seng, who founded the company....
     - $249.18
  17. China Merchants Bank
    China Merchants Bank

    China Merchants Bank is a bank headquartered in Shenzhen, China. Founded in 1987, it is the first share-holding commercial bank wholly owned by corporate legal entities....
     - $245.62
  18. Cheung Kong Holdings
    Cheung Kong Holdings

    Cheung Kong Limited , is the flagship of the Cheung Kong Group, headquartered in Hong Kong, and one of Hong Kong's leading multi-national conglomerates....
    - $244.12
  19. Ping An Insurance Group of China - $230.77
  20. Bank of China (Hong Kong) Holdings
    Bank of China (Hong Kong)

    Bank of China Limited is the second-largest commercial bank in Hong Kong in terms of assets and customer bank deposit, with more than 300 branches in Hong Kong....
     - $225.73
  21. Hang Seng Bank
    Hang Seng Bank

    Hang Seng Bank Limited is the second largest bank in Hong Kong. It is a listed company but it is majority owned by the HSBC Group via The Hongkong and Shanghai Banking Corporation....
     - $215.27
  22. Foxconn International Holdings
    Foxconn

    Foxconn is the trade name of the Taiwan based firm Hon Hai Precision Industry Co. . Foxconn is the largest manufacturer of electronics and computer components worldwide, and mainly manufactures on contract to other companies....
     - $171.45
  23. CLP Holdings - $140.52
  24. Swire Pacific
    Swire Group

    The Swire Group is a transnational corporation headquartered in London, England. It controls a range of wholly owned businesses, including deep-sea shipping, cold storage, road transport, and agricultural activities....
     - $136.98
  25. China Communications Construction
    China Communications Construction

    China Communications Construction Company Group, China Communications in short form, is a infrastructure and engineering group based on mainland China....
     - $128.69
  26. China Unicom
    China Unicom

    China Unicom or China United Netcom Ltd , , is a telecommunication operator in the People's Republic of China. It is 40.92% of the company is effectively held by the China Unicom Limited and 29.49% by China Netcom Group Limited , while the remainder is traded on the Shanghai, Hong Kong and the New York stock exchanges....
     - $127.27
  27. China Netcom
    China Netcom

    China Netcom, full name China Netcom Group Corporation Limited , abbreviated CNC, was originally formed in August 1999 by the People's Republic of China government to enable inward investments to build high speed Internet communications in the country....
     - $121.84
  28. MTR Corporation
    MTR Corporation

    MTR Corporation Limited is a company listed on the Hong Kong Stock Exchange and included in the Hang Seng Index. It is the company that owns and runs the MTR metro system....
     - $116.24
  29. Esprit Holdings
    Esprit Holdings

    Sorry, no overview for this topic
     - $98.82
  30. Hong Kong & China Gas
    The Hong Kong and China Gas Company Limited

    The Hong Kong and China Gas Company Limited , commonly known as Towngas, is the monopoly provider of towngas in Hong Kong. Founded in 1862, it is one of the oldest listed companies in the territory....
     - $96.29
  31. Henderson Land Development
    Henderson Land Development

    Henderson Land Development Co. Ltd. is a listed property company and a constituent of the Hang Seng Index. The company's principal activities are property development and investment, project management, construction, hotel operation, department store operation, finance, investment holding and infrastructure....
     - $94.99
  32. Hong Kong Exchanges and Clearing
    Hong Kong Exchanges and Clearing

    Hong Kong Exchanges and Clearing Limited is the stock exchange of Hong Kong. HKEx is the holding company for The Stock Exchange of Hong Kong Limited , Hong Kong Futures Exchange Limited and Hong Kong Securities Clearing Company Limited....
     - $94.60
  33. Huaneng Power International
    Huaneng Power International

    Huaneng Power International Inc. , or Huaneng, was established in 1994 administrated by the State Council of the People's Republic of China....
     - $90.30
  34. Hutchison Telecommunications International - $89.84
  35. Hang Lung Properties
    Hang Lung Properties

    Hang Lung Properties , formerly Amoy Properties and parent company by Hang Lung Group, is a China real estate company with its headquarters in Hong Kong....
     - $88.23
  36. Sino Land
    Sino Group

    Sino Group is one of the largest property companies in Hong Kong. The Group comprises private holding companies owned by the Ng family, and three publicly listed companies:...
     - $87.78
  37. Cathay Pacific Airways - $84.21
  38. Aluminium Corp of China - $84.08
  39. Air China
    Air China

    Air China Ltd is the People's Republic of China's state owned and Largest airlines#Asia commercial airline after China Southern Airlines. It is the flag carrier and the only airline in the world to fly the Flag of the People's Republic of China on its entire fleet....
     - $84.02
  40. Li & Fung
    Li & Fung

    Li & Fung Limited is a global trading group supplying high-volume, time-sensitive consumer goods. Garments make up a large part of the Li & Fung business which also covers the sourcing of hardgoods such as fashion accessories, furnishings, gifts, handicrafts, home products, promotional merchandise, toys, sporting goods and travel goods....
     - $82.17


See also

  • Hang Seng Index
    Hang Seng Index

    The Hang Seng Index is a freefloat-adjusted market capitalization-weighted stock market index in Hong Kong. It is used to record and monitor daily changes of the largest companies of the Hong Kong Stock Exchange and is the main indicator of the overall market performance in Hong Kong....
  • Stock disasters in Hong Kong
    Stock disasters in Hong Kong

    Many stock market crashs have occurred on the Hong Kong Stock Exchange since the 1960s. The major ones are:1960s* Stock disaster in 1965 * Stock disaster in 1967 ...
  • Economy of Hong Kong
    Economy of Hong Kong

    Hong Kong's highly favorable geographical position and entrepot trading opportunities are wealth-generating assets. It has a superb sheltered natural harbor....
  • List of Chinese companies
    List of Chinese companies

    Chinese owned companies can be defined as enterprises within mainland China, Hong Kong, Macau and Taiwan:*List of companies in Mainland China*List of companies in Hong Kong...
  • Companies listed on the Hong Kong Stock Exchange
    Companies listed on the Hong Kong Stock Exchange

    This is a list of companies on the Hong Kong Stock Exchange , ordered numerically by stock code. The names of the companies appear exactly as they do on the stock exchange listing....
  • A Share
    A share

    In finance the term A share has two distinct meanings, both relating to security .* The first is a designation for a 'class' of common stock or preferred stock....
  • H Share
    H share

    H shares refers to the shares of companies incorporated in mainland China that are traded on the Hong Kong Stock Exchange. Many companies float their shares simultaneously on the Hong Kong market and one of the two mainland Chinese stock exchanges....
  • List of stock exchanges
    List of stock exchanges

    This is an active list of stock exchanges. Those futures exchanges that also offer trading in security besides trading in futures contracts are listed both here and the list of futures exchanges....
  • Leading stock
    Leading stock

    Leading stock , which is usually applied to the stock market of Mainland China and Hong Kong, means stock of a certain company which has leading status in their business field, including scope, market share, market capital, Revenue and profit....


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