Overview of the Hong Kong Stock Exchange (SEHK)
The Hong Kong Stock Exchange (SEHK) is a leading global marketplace for the buying and selling of financial instruments, including shares, bonds, and other securities. Established in 1947, it is one of the largest and most significant stock exchanges in Asia and the world. It provides a regulated and dynamic environment for investors and traders and plays a critical role in the financial ecosystem of Hong Kong.
Key Components:
- Established: 1947
- Location: Hong Kong
- Main Index: Hang Seng Index
- Trading Hours: Mon-Fri, 9:30 AM - 4:00 PM (HKT)
Examples:
- Company Listing on SEHK: Companies such as Tencent Holdings (Ticker: 0700) are listed on SEHK, making their shares available for trading to the public.
- Hang Seng Index: Acts as a barometer of the market, reflecting the performance of the largest and most liquid companies listed on SEHK.
- Initial Public Offerings (IPO): Leading global companies often choose SEHK for their IPOs to capitalize on the access to both regional and international investors.
Frequently Asked Questions (FAQ)
What is the Hong Kong Stock Exchange (SEHK)?
The SEHK is a major stock exchange in Hong Kong where securities, including stocks and bonds, are bought and sold.
What is the Hang Seng Index?
The Hang Seng Index is the leading market indicator for SEHK, representing the largest companies in terms of market capitalization listed on the exchange.
How can foreign investors trade on SEHK?
Foreign investors can trade on SEHK through brokerage firms that have access to the exchange. There are also mutual funds and Exchange-Traded Funds (ETFs) that focus on Hong Kong-listed securities.
What types of securities are traded on SEHK?
SEHK offers a platform for trading a variety of securities including equities, bonds, funds, and derivatives.
Is SEHK linked with other major stock exchanges?
Yes, SEHK is part of the Stock Connect programs with mainland Chinese exchanges (Shanghai and Shenzhen), facilitating cross-border trading.
Related Terms and Definitions
Stock Exchange:
A marketplace for buying and selling securities where the prices are regulated by supply and demand within a controlled environment.
Initial Public Offering (IPO):
The process through which a private company offers shares to the public for the first time to raise capital.
Equity:
A type of security representing ownership in a corporation, commonly referred to as stock.
Bond:
A fixed-income instrument representing a loan made by an investor to a borrower, typically corporate or governmental.
Online Resources
Suggested Books for Further Studies
- “Investment Banking in China” by K. Thomas Liaw
- “The Handbook of China’s Financial System” by Marlene Amstad, Guofeng Sun, and Wei Xiong
- “Asia’s Next Giant: South Korea and Late Industrialization” by Alice H. Amsden
Accounting Basics: “Hong Kong Stock Exchange” Fundamentals Quiz
Thank you for exploring the Hong Kong Stock Exchange with us and testing your knowledge through this detailed learning session. Keep advancing your understanding of the financial markets!
