What is Hong Kong Exchanges and Clearing Limited (HKEx)
Hong Kong Exchanges and Clearing Limited (HKEx) is a publicly traded holding company that presents itself as one of the largest market operations in the world.
BREAKDOWN Hong Kong Exchanges and Clearing Limited (HKEx)
Hong Kong Exchanges and Clearing Limited (HKEx) was established in 2000, due to the focus on comprehensive reform and oversight of the stock and futures markets in Hong Kong. HKEx was born out of the merger of the Hong Kong Stock Exchange, the Hong Kong Futures Exchange and the Hong Kong Securities Clearing Company. The merger was aimed at increasing China’s competitiveness in the world market.
Today, the company’s structure is focused on three main markets, which are integrated to form a complementary group. These main markets, which include two of the company’s original components, are the Hong Kong Stock Exchange, the Hong Kong Futures Exchange and the London Metal Exchange. This current composition allows HKEx to position itself to take advantage of two of the main financial centers of the world, Hong Kong and London.
The company is a global platform for raising capital for issuers based in Hong Kong, throughout China and around the world.
Hong Kong Exchanges and Clearing Limited (HKEx) History and makeup
Hong Kong has long been an important center of financial and commercial activity in this region and around the world. The first formal market was established in Hong Kong in 1891, although exchanges of securities in the region were reported well before this date. A second stock exchange was formed a few years later, and the two came together in 1947 to form the Hong Kong Stock Exchange.
HKEx also serves as a regulator, overseeing the business activities of companies listed in Hong Kong and those involved in business activities on its site. The company is proud to maintain a well organized and strictly regulated market for investors.
HKEx trades stocks, bonds, warrants, REITs, mutual funds, ETFs and equity-related instruments. To be traded on the main board of HKEx, a company must have a trading record of at least three consecutive years, a profit of at least 20 million HK dollars in the most recent year and 30 million HK dollars in the past two years, an expected market capitalization of at least HK $ 100 million and at least 25% of its securities held by the public.
HKEx also has a number of subsidiaries, including OTC Clearing Hong Kong Limited (OTC Clear), which was established in 2020 and which serves as a clearing house for OTC derivatives in Hong Kong.