Understanding The Hong Kong Stock Exchange

Posted by Jiten Achary
6
Feb 20, 2018
786 Views
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The Hong Kong Stock Exchange is placed in East Asia. In terms of market capitalization, it is the third largest in Asia and sixth largest all over the world. It was originated by China as a recognized securities market in the alliance of stockbrokers in Hong Kong. Currently, it has 1200 listed companies and mergers with Hong Kong Future Exchange and Hong Kong Securities Cleaning Company, since 2000 it has been a publicly traded company.

Reshaping Global Market

Hong Kong Stock Exchange is in one of the largest financial exchanges operating in the entire world. The financial hub of Hong Kong has an additional base in London that works to ensure world-class amenities for trading and clearing securities. It also has derived in some sectors similar to equities, commodities, fixed income and currency. They are positioned in such a way that makes them unique in terms of making a connection with Chinese and other international capital flows and Hong Kong. This connection has gone so far throughout the world. Due to the opening of China's capital markets, Hong Kong Stock Exchange is continuing to be a pioneer as the head of their historic transaction with an increase in speed. It also enhances the reshaping of the global market landscape.

Market Advancements

The reshaping feature has been incorporated into three core market advancements. At first, The Stock Exchange of Hong Kong. It is the iconic securities market of Hong Kong made up with 2118 listed companies with $34 trillion total market cap. It also became the number one in Global IPO venue 5 times in past 9 years. Then comes Hong Kong Future Exchange. It is a multi-asset derivatives exchange. The trade has constructed about $215 million in the fiscal year 2017, which makes 20.3% of annual volume growth from past 17 years and becomes the #1 ranked for the 11th consecutive year in securitized derivatives turnover. Lastly, the London Metal Exchange, which is the center for metals trading. Investors Hangout tracks this data daily within their stock message boards.

Working Process

Their working process has been divided into some factors into the financial market. Such as;

Listing: Hong Kong Stock Exchange the leading capital raising venue for Chinese and International Issuers. They have a frontline regulator companies in Hong Kong.

Trading: This stock exchange has a wide range of products to offer in the market.  Such as equities, ETFs, REITs, bonds, structured equity products, equity index and single stock derivatives, currency futures, and commodity derivatives.

Cleaning: They offer integrated solutions for the markets acting as clearing house and settlement system and some certain over-the-counter transactions.

Benchmarks: The trusted benchmark price for global base metal markets indices developed benchmark through the partnership in onshore and offshore Chinese equities and RMB exchange rate.

Connectivity: The stock exchange enables connecting with the market to offer hosting services in the state-of-the-art data center located in Hong Kong.

Hong Kong Stock Exchange is in the form of trading with a greater value of money. If someone wants to invest in this stock market, then it is high time as they are doing such contribution towards the global market. But it would be great if the investment is done through the brokers. Investors Hangout has all the relevant information regarding these investments.
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