What is Hong Kong Exchanges and Clearing Limited (HKEx)
Hong Kong Exchanges and Clearing Limited (HKEx) is a publicly-traded holding company that promotes itself as one of the biggest market operations in the world.
BREAKING DOWN 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 comprehsnive reform and oversight related to stock and futures markets in Hong Kong. HKEx was formed through 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 in the global market.
Today, the corporate structure focuses on three main markets, that are integrated to form a complementary grouping. These core markets, which include two of the company’s original components, are The Stock Exchange of Hong Kong, the Hong Kong Futures Exchange, and the London Metal Exchange. This current makeup allows the HKEx to position itself in a way to take advantage of two of the world’s leading financial hubs, Hong Kong and London.
The company is a global platform for raising capital for issuers based in Hong Kong, throughout China and around the world.
Hong Kong Exchanges and Clearing Limited (HKEx) History and Makeup
Hong Kong has long served as an important center of financial and business activities both in that region and around the world. The first formal market was established in Hong Kong in 1891, although securities trading in the region were reported long before that time. A second exchange was formed a few years later, and the two joined together in 1947 to form the Hong Kong Stock Exchange.
HKEx also serves as a regulating body, overseeing the trading activities of companies listed in Hong Kong and those who participate in trading activities within its venue. The company prides itself on maintaining a well-organized and tightly-regulated marketplace for investors.
HKEx trades in stocks, bonds, warrants, REITs, mutual funds, ETFs and equity-linked instruments. To be traded on HKEx's main board, a company must have a trading record of at least three consecutive years, a profit of at least HK$20 million in the most recent year and HK$30 million over the last two years, an expected market capitalization of at least HK$100 million, and at least 25 percent of its securities held by the public.
HKEx also has a number of subsidiary units, including OTC Clearing Hong Kong Limited (OTC Clear), which was established in 2012 and which serves as a clearinghouse for OTC derivatives in Hong Kong.