Hong Kong Exchanges and Clearing Limited (HKEx)
August 8, 2023
Hong Kong exchanges are the third largest exchanges in Asia by market capitalization. Asia is the largest continents on Earth, with more than 130,000 people in each square meter. So many individual and institutional investors are looking for a perfect Exchange in this continent. And Hong Kong Exchanges is one of the best marketplaces available. Here at Aron Groups, we will discuss this Exchange’s history, magnitude, and importance of the HKEx in detail.
What is the Hong Kong Exchanges and Clearing Limited?
Hong Kong Exchanges and Clearing Limited, better known as HKEx, refers to a group of global exchanges that operate dynamically and integrate the financial markets in Asia or Europe. The Hong Kong Exchanges and Clearing Limited group is a bridge that connects Hong Kong to London and provides world-class facilities for trading and clearing Securities and derivatives. Investors can trade on equities, commodities, fixed income, and currencies. It is considered the third-largest Exchange in the world because of its position. The HKEx is a window for international capital flow from Chinese to other countries and vice versa. Hong Kong has always been the heart of every financial connection between China and the world. Exchange is a publicly traded holding company that operates as a headquarter for the Stock Exchange of Hong Kong and the Hong Kong Futures Exchange.
The Hong Kong Exchanges and Clearing Limited also contains four Clearing houses in Hong Kong and the London Metal Exchange, which makes it an important trading hub.
The estimated market capitalization of this well-capitalized market was 43.3 trillion dollars by 2020.
The HKEx is a lot more than a group of exchanges. It is a regulating body that monitors the trading activities of every company listed on the Hong Kong exchanges.
Every company interested in getting on board with the HKEx must provide a profit, market cap, and cash flow test.
Table of Contents
History: The Hong Kong Exchanges and Clearing Limited
the Hong Kong Exchanges and Clearing Limited Was launched in 2000. at that time, understandable reform and monitoring related to the stock and Futures markets were in demand. To answer the rising demand, the HKEx was created after the merger of the Hong Kong Stock Exchange, the Hong Kong Futures Exchange, and the Hong Kong Security Clearing Company. The main goal of the merger was to increase China’s competitive advantages in the global market and create a bridge between Hong Kong and another part of the world.
Read more: Shanghai Stock Exchange
How does HKEx work?
Nowadays, there are more than 2,524 companies listed on this Exchange. The Hong Kong Exchanges and Clearing Limited contains three different markets that are integrated and work as a group. The three core markets include the Hong Kong stock exchange, the Hong Kong Futures Exchange, and the London Metal Exchange (LME). Having access to these three different Markets enables HKEx to benefit from two of the leading financial centers that are Hong Kong and London, at the same time.
One of the core functions of the Hong Kong Exchanges and Clearing Limited is to raise capital for listed companies based in Hong Kong. The HKEx provides services including listing, clearing, Market data, trading, reference prices, and Connectivity.
The HKEx is used for clearing houses to operate, including the following:
- SEHK Options Clearing House Limited (SEOCH)
- OTC Clearing Hong Kong Limited (OTC Clear)
- Hong Kong Securities Clearing Company (HKSCC)
- HKFE Clearing Corporation Limited (HKCC)
As previously noted, the HKEx operates as a regulating body that monitors every trading activity of the listed companies based in Hong Kong and those participating in trading activities within its venue.
Listing requirements of Hong Kong Exchanges and Clearing Limited
The HKEx That group provides trading services in stocks, Forex, bonds, warrants, mutual funds, exchange-traded funds, REITs, and equity-linked instruments.
As mentioned previously, every company needs to pass three tests to be included as a board member in this Exchange:
Profit test: a company needs to provide a 3-year aggregate profit of HK$50 million and HK$500 Market cap to be listed on the HKEx.
Along with market cap, Revenue test, and cash flow test, each company must have at least 300 shareholders and semi-annual financial reporting.
Read more: London Stock Exchange
What is the Hong Kong Stock Exchange?
The Hong Kong Stock Exchange is a subsidiary of Hong Kong Exchange and Clearing Limited (HKEx). It is also considered the leading regulator of issuers in Hong Kong. It was created in 1891, and there were more than 2,135 listed companies in these exchanges as of 2018.
There is a minimum capitalization and minimum public float value for every company that wants to be listed on the Hong Kong Exchange. The minimum capitalization and public float value stand at HK$500 million and HK$125 million
Listings on the Singapore Exchange
you can find real estate, shipping, Banks, gas, and oil companies’ equities on the exchange. Up until 2021, the number of listed companies on this exchange was 735. some of the most popular companies listed on this exchange are DBS, Singtel, CapitalLandInvest, UOS, and YZJ Shilbldg SGD.
Read more: Exchange Traded Fund
The Singapore exchange Working hour
Forex is a 24/7 Market bought. At the same time, you need to know the opening and closing hours of different sessions on the market. The Singapore Exchange During summer from October to Mars opens at 6:00 a.m. and continues to work until 3:00 p.m. The Tokyo exchange starts from 7:00 a.m. till 4:00 p.m. After that, you can trade on the London exchange, which starts at 3:00 p.m. and continues until 12:00 p.m. at the end of the day. New York starts work from 8:00 p.m. to 5:00 a.m.
No one can say there is the best time to trade on Singapore Exchange; in fact, you need to find the best time and exchange to trade on Forest based on your current location and trading strategy.
A fabulous Exchange
Singapore exchange is one of the most important exchanges on the whole Asia, which specifically engages in technological products. You can profit from trading on this exchange, and we at Aron Groups are here to provide you with perfect Trading opportunities. And in this regard, we are providing you with educational matters to help you learn more about top exchanges from all around the world and help you comprehend their infrastructures and history.
Because as long as you have enough information, you can open fruitful positions on Forex, and then you know different exchanges worldwide, you will be able to choose the bond that suits your trading strategies and priorities. Learning more about different action just below all around the world help you diversify your portfolio and head against inflation and economic recessions.
Before starting to trade on Forex, you need to learn everything about the largest financial markets from all around divorce to understand the circumstances and the atmosphere of the currency trades worldwide. In the next step, we recommend you choose a trading strategy and test it using our demo account before trading with real money.