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 2,100 listed companies as of the end of 2017, up from 1,200 in 2008. The aggregate market capitalization of companies listed on the exchange was around HK$34 trillion at the end of 2017. 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.

The top listed companies by market capitalization are almost all 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, Tencent Holdings, the Chinese internet conglomerate, stands far above the crowd at the No. 1 position.

  1. Red Chip

    A red-chip company is one that is based in Mainland China but ...
  2. HKD (Hong Kong Dollars)

    The Hong Kong dollar (HKD) is accepted in both Hong Kong and ...
  3. Special Administrative Region - ...

    A Special Administrative Region is a relatively autonomous region ...
  4. Cross-Listing

    Cross-listing is the listing of a company's common shares on ...
  5. Shanghai Stock Exchange

    The Shanghai Stock Exchange is the largest stock exchange in ...
  6. Dim Sum Bond

    Dim sum bond is a bond denominated in Chinese renminbi and issued ...
Related Articles
  1. Trading

    The Hong Kong Dollar: What Every Forex Trader Needs To Know

    Find out everything you need to know about the eighth most traded currency in forex.
  2. Investing

    How To Trade the Hong Kong Stock Exchange through ETFs (ETFC, EWH)

    The Hong Kong Stock Exchange is the eighth largest in the world and easily accessible through ETFs.
  3. Insights

    What You Should Know About Hong Kong SAR

    You might know that Hong Kong is both a bastion of capitalism separate from (but also administered by) socialist China. How did it get that way?
  4. Trading

    China's Top Trading Partners

    A slowdown in China, the largest trading nation in the world, will have significant impacts on major trading partners: the U.S., Hong Kong, and Japan.
  5. Investing

    Alibaba's Ma Wants to Make Hong Kong a Cashless Society

    Jack Ma wants to help Hong Kong turn into a cashless society via help from Alipay.
  6. Insurance

    The 5 Biggest Chinese Insurance Companies

    Read about the top Chinese insurance companies by market capitalization, and learn a little about their positions in the marketplace.
  7. Insights

    The World's Leading Financial Cities

    Find out the cities that are the most predominant hubs of global financial activity.
  8. Financial Advisor

    The 6 Biggest Chinese Energy Companies (SNP, 1088.HK)

    Read about the six companies atop the Chinese energy industry as measured by consolidated revenue, and learn more about their energy operations.
  9. Insurance

    Top IPO Nations

    We'll look at which countries lead the world in IPOs and how that correlates with their economic health.
  1. Why is Hong Kong considered a tax haven?

    Discover why Hong Kong is one of the world's leading tax havens. Low taxation on high-net-worth individuals and corporations ... Read Answer >>
  2. What are all of the securities markets in the U.S.A?

    Securities can be bought and sold via a number of exchanges in the US. Learn about the major and somewhat lesser-known U.S. ... Read Answer >>
  3. Move from an OTC to a major exchange

    In order to move a company from over-the-counter market to a major exchange, a number of conditions must be met to being ... Read Answer >>
Trading Center