What Is Hong Kong Exchanges and Clearing Limited (HKEx)?
Hong Kong Exchanges and Clearing Limited (HKEx) is a publicly-traded retaining company that is without doubt one of the largest market operators on the planet. Its subsidiaries include the Stock Exchange of Hong Kong and the Hong Kong Futures Exchange. HKEx moreover manages 4 clearing houses in Hong Kong and the London Metal Exchange (LME), making it the most important status quo inside the world financial markets.
Key Takeaways
- Hong Kong Exchanges and Clearing Limited (HKEx) is a publicly-traded retaining company that is composed of some of the largest market institutions on the planet.
- HKEx operates the Stock Exchange of Hong Kong, the Hong Kong Futures Exchange, the London Metal Exchange, and four clearing houses in Hong Kong.
- HKEx is without doubt one of the largest and well-capitalized market operators on the planet with a market cap of $43.3 trillion as of October 2020.
- The primary services and products and merchandise of HKEx include tick list, purchasing and promoting, clearing, market data, reference prices, and connectivity.
- HKEx moreover serves as a regulating body, overseeing the purchasing and promoting movements of companies listed in Hong Kong and people who participate in purchasing and promoting movements within its venue.
- To be built-in on Hong Kong Exchanges and Clearing Limited’s (HKEx’s) main board, an company will have to cross one in every of 3 tests: a get advantages test, a market cap and income test, or a market cap, income, and cash go with the flow test.
Working out Hong Kong Exchanges and Clearing Limited (HKEx)
Hong Kong Exchanges and Clearing Limited (HKEx) was created in 2000, as the result of a greater emphasis on entire reform and oversight related to stock and futures markets in Hong Kong.
HKEx was formed for the duration of the merger of the Hong Kong Stock Exchange, the Hong Kong Futures Exchange, and the Hong Kong Securities Clearing Company. The merger was designed to increase China’s competitiveness inside the world market.
Nowadays, the corporate development makes a speciality of 3 main markets which could be integrated to form a complementary grouping. The ones core markets, which include two of the company’s original portions, are the Stock Exchange of Hong Kong, the Hong Kong Futures Exchange, and the London Metal Exchange (LME). This provide makeup lets in the HKEx to position itself in a way to benefit from two of the sphere’s major financial hubs, Hong Kong and London.
As of October 2020, it has a market cap of $43.3 trillion with 2,524 listed firms.
Functions of Hong Kong Exchanges and Clearing Limited (HKEx)
The company is an international platform for raising capital for issuers based totally in Hong Kong, in all places China, and around the globe. Its main services and products and merchandise include tick list, purchasing and promoting, clearing, market data, reference prices, and connectivity.
HKEx operates 4 clearing houses: SEHK Alternatives Clearing Area Limited (SEOCH), OTC Clearing Hong Kong Limited (OTC Clear), Hong Kong Securities Clearing Company (HKSCC), and HKFE Clearing Corporate Limited (HKCC).
HKEx moreover serves as a regulating body, overseeing the purchasing and promoting movements of companies listed in Hong Kong and people who participate in purchasing and promoting movements within its venue. The company prides itself on maintaining a well-organized and tightly-regulated marketplace for consumers.
Report on Hong Kong Exchanges and Clearing Limited (HKEx)
HKEx trades in stocks, bonds, warrants, REITs, mutual funds, exchange-traded funds (ETFs), and equity-linked gear. To be traded on HKEx’s main board, a company will have to satisfy one in every of 3 tests: a get advantages test, a market cap and income test, or a market cap, income, and cash go with the flow test.
The ease test calls for a corporation to have a three-year mixture advantage of HK$50 million or additional and a market cap of HK$500 million or additional.
{The marketplace} cap and income test calls for a corporation’s latest income figures to be HK$500 million or additional and to have a market cap of HK$4 billion or additional.
{The marketplace} cap, income, and cash go with the flow test stipulates that a company will have to have its latest income figures be HK$500 million or additional, a market cap of HK$2 billion or higher, and a good three-year mixture cash go with the flow of HK$100 million or additional.
Other prerequisites include an birthday party to have keep an eye on continuity of three years, a minimum of 300 shareholders, and semi-annual financial reporting, among other prerequisites.
