Stock Exchange of Hong Kong (SEHK): Structure, Listings, and Trading Operations
Guide to the Stock Exchange of Hong Kong (SEHK): its governance under Hong Kong Exchanges and Clearing, market size and listings mix, electronic trading systems, and core clearing and settlement functions.
Overview
The Stock Exchange of Hong Kong Limited (commonly abbreviated SEHK) is a stock exchange based in Hong Kong. It is operated under the group Hong Kong Exchanges and Clearing, which is itself listed on the exchange. The group also administers the Hong Kong Futures Exchange Limited and the Hong Kong Securities Clearing Company Limited.
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Size and ranking
SEHK is one of the principal securities markets in East Asia and across Asia. In regional comparisons it has been ranked behind the Tokyo Stock Exchange and the Shanghai Stock Exchange. Measured by market capitalization, it ranks among the world’s largest stock trading venues and, in some listings, has been placed ahead of Euronext.
Listings and market composition
As of 31 October 2016 the exchange listed 1,955 companies. The composition at that date included 989 issuers from mainland China (including Red chips, H shares and P chips), 856 from Hong Kong and 110 from other jurisdictions such as Macau, Taiwan, Malaysia, the United States and Singapore. Hong Kong Exchanges and Clearing, the parent company, is itself a quoted entity on the SEHK.
Trading format
The SEHK shifted overwhelmingly to electronic order-driven trading over the early 21st century. The traditional open trading floor at Exchange Square in Hong Kong closed in 2017 after face-to-face trading had declined sharply; by 2014 that floor accounted for less than 1% of trading volume. Today the exchange functions as an electronic stock exchange, handling order matching, dissemination of market data and settlement arrangements through centralised systems.
Questions and answers
Q: What is the Stock Exchange of Hong Kong Limited?
A: The Stock Exchange of Hong Kong Limited, also known as SEHK, is a stock exchange located in Hong Kong.
Q: Where does SEHK rank in terms of market capitalization compared to other stock exchanges?
A: SEHK is East Asia's and Asia's third largest stock exchange in terms of market capitalization behind the Tokyo Stock Exchange and Shanghai Stock Exchange.
Q: How many listed companies does SEHK have?
A: As of October 31, 2016, SEHK had 1,955 listed companies.
Q: Where do most of the listed companies on SEHK come from?
A: 989 of the listed companies on SEHK come from mainland China, while 856 come from Hong Kong and 110 come from other countries and regions.
Q: Who owns SEHK?
A: Hong Kong Exchanges and Clearing owns SEHK and is itself listed on SEHK.
Q: What happened to the physical trading floor at Exchange Square?
A: The physical trading floor at Exchange Square closed in 2017 due to the shift towards electronic trading.
Q: What other companies does Hong Kong Exchanges and Clearing control?
A: Hong Kong Exchanges and Clearing also controls Hong Kong Futures Exchange Limited (HKFE) and Hong Kong Securities Clearing Company Limited.
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Author
AlegsaOnline.com Stock Exchange of Hong Kong (SEHK): Structure, Listings, and Trading Operations Leandro Alegsa
URL: https://en.alegsaonline.com/art/45003
Sources
- hkex.com.hk : HKEX Fact Book 2015
- investing.com : "Hang Seng (HSI)"
- hkex.com.hk : "Our Markets"
- bbc.com : "End of an era for HK trading floor"
- hkex.com.hk : hkex.com.hk/eng/stat/epstat/floorstat/2014floorstat.htm
- wikidata.org : wikidata.org/wiki/Q496672
- id.loc.gov : n84177938
- viaf.org : 125541955
- worldcat.org : lccn-n84177938