Hong Kong Stock Exchange (HKG) .HK

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James Chen
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James Chen, CMT is an expert trader, investment adviser, and global market strategist.

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Updated June 20, 2022
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Thomas Brock
Thomas Brock
Reviewed by Thomas Brock
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Thomas J. Brock is a CFA and CPA with more than 20 years of experience in various areas including investing, insurance portfolio management, finance and accounting, personal investment and financial planning advice, and development of educational materials about life insurance and annuities.
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Hans Daniel Jasperson
Fact checked by Hans Daniel Jasperson
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Hans Daniel Jasperson has over a decade of experience in public policy research, with an emphasis on workforce development, education, and economic justice. His research has been shared with members of the U.S. Congress, federal agencies, and policymakers in several states.
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What is the Hong Kong Stock Exchange (HKG) .HK

The Hong Kong Stock Exchange (HKG) .HK is a member of the HKEX Group and the leading venue for capital raising activity for Hong Kong and Mainland Chinese issuers. One of the world's largest securities markets by market capitalization, the Hong Kong Stock Exchange traces its origins to the founding of China's first formal securities market, the Association of Stockbrokers in Hong Kong, in 1891. A second market opened in 1921, and in 1947 the two merged to form the Hong Kong Stock Exchange. The exchange introduced automated ordering in 1993 and stock option trading in 1995.  It merged with the Hong Kong Futures Exchange and the Hong Kong Securities Clearing Company in 2000 to form Hong Kong Exchanges and Clearing Ltd., a publicly-traded company. Due to the dominance of electronic trading, the stock exchange closed down its physical trading floor in 2017.

BREAKING DOWN Hong Kong Stock Exchange (HKG) .HK

The Hong Kong Stock Exchange (HKG) .HK is one of the largest markets in Asia with over 2,500 listed companies of the end of Nov. 2020, up from 1,200 in 2008. The aggregate market capitalization of companies listed on the exchange was around HK$45.5 trillion as of Nov. 2020. The growth has been fueled by listings by Mainland Chinese companies ("H-shares" on the Hong Kong Stock Exchange) whose rapid development has gone hand-in-hand with the enormous economic rise of the country. The minimum market capitalization for a listing is currently HK$500 million and the minimum value of public float is HK$125 million. The exchange raised these minimum amounts in 2017 to strengthen trading liquidity for market participants and enhance the quality of the exchange's listed issuers.

Several of the top listed companies by market capitalization are banks and insurance companies from Mainland China, such as the Industrial and Commercial Bank of China, China Construction Bank, Bank of China, and Ping An Insurance. However, as of Nov. 2020, Tencent Holdings, the Chinese internet conglomerate, stands far above the crowd at the No. 1 position. (For related reading, see "How to Trade on the Hong Kong Stock Exchange")

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  1. Hong Kong Exchanges and Clearing Limited . "History of the Hong Kong Stock Market," Page 51. Accessed Nov. 17, 2020.

  2. Hong Kong Stock Exchanges and Clearing Limited. "History of the Hong Kong Stock Market," Page 58. Accessed Nov. 17, 2020.

  3. Hong Kong Stock Exchanges and Clearing Limited. "HKEx Stock Options: Introductory Guide to the Stock Options Corner," Page 2. Accessed Nov. 17, 2020.

  4. Hong Kong Exchanges and Clearing Limited. "History of HKEX and Its Market." Accessed Nov. 17, 2020.

  5. Hong Kong Exchanges and Clearing Limited. "HKEX Hosts Event to Mark End of Its Floor Trading." Accessed Nov. 17, 2020.

  6. Hong Kong Exchanges and Clearing Limited. "Hong Kong and Mainland Market Highlights." Accessed Nov. 17, 2020.

  7. Hong Kong Exchange and Clearing Limited. "Listing Rules, Interpretation and Guidance, Chapter 8." Accessed Nov. 17, 2020.

  8. Hong Kong Exchange and Clearing Limited. "List of Securities." Accessed Nov. 17, 2020.

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