Hong Kong Stock Exchange

From Wikipedia, the free encyclopedia


Hong Kong Stock Exchange
Type
Founded 1891
Headquarters Central, Hong Kong
Industry Financial Services
Services Share trading
Parent Hong Kong Exchanges and Clearing
Website hkex.com.hk

The Hong Kong Stock Exchange (traditional Chinese: 香港交易所, also 港交所; abbreviated as HKEX; SEHK: 0388) 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 is Asia's second largest stock exchange, behind the Tokyo Stock Exchange.

Hong Kong Exchanges and Clearing is the holding company for the exchange.

Contents

[edit] History

Holding Company logo at Exhibition Hall
Holding Company logo at Exhibition Hall

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[1]. 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
Image:Template CanadianCityGeoLocation West.png 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
Image:Template CanadianCityGeoLocation West.png Far East Exchange Ltd (Founded 1969) Image:Template CanadianCityGeoLocation West.png Kam Ngan Stock Exchange Ltd (Founded 1971) Image:Template CanadianCityGeoLocation West.png 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 becomes the holding company for Hong Kong Stock Exchange
Image:Template CanadianCityGeoLocation West.png Hong Kong Futures Exchange Ltd (Founded 1976) Image:Template CanadianCityGeoLocation West.png Hong Kong Securities Clearing Company Ltd (Founded 1989)

[edit] Business

Image:Hkecon.jpg
Economy of Hong Kong

    Identity
        Hong Kong Dollar
          Banknotes
          Coins
        Monetary Authority
        Four Asian Tigers

    Resources
        Employment   Transport
        Tourism          Postal
        Agri/Aqua       Ports

    Companies
        Stock Exchange  GEM
        Companies listed on HKSE
Other Hong Kong topics
Culture - Education
Geography - History - Politics
Hong Kong Portal

Computers were integrated on April 2, 1986, which has helped modernize the system[2]. 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[3]. 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)

[edit] 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 is 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.[4]

[edit] 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 - $1,720.49
  2. PetroChina - $1,713.23
  3. HSBC Holdings - $1,654.82
  4. China Mobile - $1,411.83
  5. Bank of China - $1,175.62
  6. China Life Insurance - $1,114.84
  7. China Construction Bank - $1,074.01
  8. Sinopec Corp - $769.91
  9. Manulife Financial - $404.27
  10. Bank of Communications - $392.54
  11. China Shenhua Energy - $364.51
  12. Hutchison Whampoa - $342.78
  13. China Telecom - $317.25
  14. Standard Chartered - $315.76
  15. CNOOC - $290.30
  16. Sun Hung Kai Properties - $249.18
  17. China Merchants Bank - $245.62
  18. Cheung Kong Holdings- $244.12
  19. Ping An Insurance Group of China - $230.77
  20. Bank of China (Hong Kong) Holdings - $225.73
  21. Hang Seng Bank - $215.27
  22. Foxconn International Holdings - $171.45
  23. CLP Holdings - $140.52
  24. Swire Pacific - $136.98
  25. China Communications Construction - $128.69
  26. China Unicom - $127.27
  27. China Netcom - $121.84
  28. MTR Corporation - $116.24
  29. Esprit Holdings - $98.82
  30. Hong Kong & China Gas - $96.29
  31. Henderson Land Development - $94.99
  32. Hong Kong Exchanges and Clearing - $94.60
  33. Huaneng Power International - $90.30
  34. Hutchison Telecommunications International - $89.84
  35. Hang Lung Properties - $88.23
  36. Sino Land - $87.78
  37. Cathay Pacific Airways - $84.21
  38. Aluminium Corp of China - $84.08
  39. Air China - $84.02
  40. Li & Fung - $82.17

[edit] See also

[edit] References

  1. ^ HKedu. "HKU." Hong Kong U. Retrieved on 2007-02-15.
  2. ^ HKEX. "HKEX." History of HK exchange. Retrieved on 2007-02-11.
  3. ^ ADVFN. "ADVFN." History of the Hong Kong stock exchange. Retrieved on 2007-02-11.
  4. ^ Cheung, Jackie (February 15, 2007). Plan for tighter spreads dropped. Hong Kong Standard. Retrieved on 2007-03-19.

[edit] External links