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.
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.