HKSE

HKSE - Hong Kong Stock Exchange (HKSE)

About the Hong Kong Stock Exchange :

Although the trade of securities began in the middle of the 19th c., Hong Kong Stock Exchange was established at the end of the century. Today with its total securities market capitalization of a record sum of HK$ 8,260.3 billion (US$ 1,063.9 trillion), the HKSE ranks 8th place by market capitalization in the world.

The HKSE has 4338 stocks listed on the exchange with the market turnover of HK$4,520.4 billion (US$ 0,582.2 trillion) in 2005. The turnover increased by 14% from the previous year. Local institutional and retail investors are the main contributors of market turnover (56%). The exchange also has a leading derivatives market in the Asia-Pacific region with the daily turnover of 103.332 contracts per day that has increased by even 30% from 2004.

In 2000, the Stock Exchange of Hong Kong Limited, Hong Kong Futures Exchange Limited together with Hong Kong Securities Clearing Company Limited merged under a single exchange HKEx. HKEx listed its shares on the stock exchange in June 2000.

The trading system of the Exchange is an order-driven system. HKEx securities market operates on two trading platforms - the Main Board and the Growth Enterprise Market (GEM). Each trading platform has a different set of requirements. The Main Board is the market for capital growth by established companies that meet profit requirements. Meanwhile, the Growth Enterprise Market provides a fund raising venue for 'high growth, high risk' companies. It promotes the development of technology industries and venture capital investments.

In October 2000, HKEx developed a trading system AMS/3 consisting of four components - Trading Terminal, Multi-Workstation System ('MWS'), Broker Supplied System ('BSS'), and Order Routing System ('ORS') that investors can choose among. The ORS allows investors to place requests electronically. In addition to trading through terminals in the Trading Hall, exchange participants are enabled to trade from their offices through installed off-floor terminals.

The HKSE has the leading index the Hang Seng for shares traded on the Hong Kong Stock Exchange that was introduced in 1969. The Hang Seng index consisting of the 33 largest companies traded on the exchange represent around 70% of the value of all stocks traded on the HKSE.

HKSE - History of the Hong Kong Stock Exchange :

In 1891 the first formal securities market, the Association of Stockbrokers in Hong Kong, was established. A few decades later it was renamed the Hong Kong Stock Exchange (HKSE) or the Stock Exchange of Hong Kong (SEHK). A second exchange, the Hong Kong Stockbrokers' Association was opened in 1921. The two exchanges merged to form the Hong Kong Stock Exchange in 1947.

The HKSE also merged with other four national exchanges in the end of the 20th century. The new exchange started trading through a computer-assisted system on 2 April 1986.The unified exchange had 570 participating organizations.

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. The new system enabled the exchange participants to trade from their offices.

The HKSE launched its traded stock options market in 1995. The first stock option was on HSBC Holdings plc. In 1999, the HKSE opened the Growth Enterprise Market (GEM) that made the access to the capital market easier for riskier businesses. After a year, the Growth Enterprise Index (GEI) was launched.

Finally, the Stock Exchange of Hong Kong together with Hong Kong Futures Exchange Ltd. established in 1976 and Hong Kong Securities Clearing Company Ltd. incorporated in 1989 merged to form a unified company Hong Kong Exchanges and Clearing Limited (HKEx) in 2000. Shares of the HKEx were listed on the Stock Exchange of Hong Kong with a stock code of 388.

Reports of securities trading in Hong Kong date back to the mid-19th century. However, the first formal market, the Association of Stockbrokers in Hong Kong, was not established until 1891. The Association was re-named the Hong Kong Stock Exchange in 1914.

A second exchange, the Hong Kong Stockbrokers' Association was incorporated in 1921. The two exchanges merged to form the Hong Kong Stock Exchange in 1947 and re-establish the stock market after the Second World War.

Pressure to strengthen market regulation and to unify the four exchanges led to the incorporation of the Stock Exchange of Hong Kong Limited in 1980. The four exchanges ceased business on 27 March 1986 and the new exchange commenced trading through a computer-assisted system on 2 April 1986. Prior to the completion of the exchange merger in March 2000, the unified stock exchange had 570 participant organisations