Hong Kong Stock Exchange (HKG) .HK

Accumulation/Distribution Indicator - A/D Definition and Uses

What is the Hong Kong Stock Exchange (HKG) .HK

The Hong Kong Stock Exchange (HKG) .HK is a member of the HKEX group and the primary location for raising capital for issuers in Hong Kong and mainland China. One of the largest securities markets in the world by market capitalization, the Hong Kong Stock Exchange has its origins in the founding of the first official Chinese securities market, the Hong Kong Association of Stockbrokers, in 1891. A second market opened in 1921 and in 1947 the two merged to form the Hong Kong Stock Exchange. The stock market introduced automated orders in 1993 and stock option trading in 1995. It merged with the Hong Kong Futures Exchange and the Hong Kong Securities Clearing Company in 2000 to form Hong Kong Exchanges and Clearing Ltd., a publicly traded company. Due to the predominance of electronic commerce, the stock market closed its physical parquet in 2020.

BREAKDOWN of Hong Kong Stock Exchange (HKG) .HK

The Hong Kong Stock Exchange (HKG) .HK is one of the largest markets in Asia with more than 2,100 listed companies at the end of 2020, up from 1,200 in 2008. The overall market capitalization of listed companies was around HK $ 34. trillion at the end of 2020. Growth was fueled by quotes from mainland Chinese companies (“H shares” on the Hong Kong Stock Exchange) whose rapid development went hand in hand with the country’s enormous economic growth. The minimum market capitalization of a listing is currently HK $ 500 million and the minimum public float is HK $ 125 million. The stock market raised these minimum amounts in 2020 in order to strengthen trading liquidity for market players and improve the quality of listed issuers.

The main companies listed by market capitalization are almost all the mainland Chinese banks and insurance companies such as the Industrial and Commercial Bank of China, the China Construction Bank, the Bank of China and Ping An Insurance. However, Tencent Holdings, the Chinese Internet conglomerate, sits well above the crowd at position # 1. (For related reading, see “How to Trade on the Hong Kong Stock Exchange”)

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