SEHK

An abbreviation for the Stock Exchange of Hong Kong, a key financial hub for trading securities and providing a marketplace for investors and companies.

Definition

SEHK

SEHK (Stock Exchange of Hong Kong) refers to the primary securities trading platform in Hong Kong. It is one of Asia’s most significant financial markets and facilitates the trading of various financial instruments, including stocks, bonds, and derivatives.


Examples

  1. Listed Companies: Many major international companies, such as Alibaba Group (9988.HK) and Tencent Holdings Limited (0700.HK), are listed on the SEHK.
  2. Trading Hours: The SEHK operates from 9:30 AM to 4:00 PM local time, with a lunch break from 12:00 PM to 1:00 PM.
  3. Market Capitalization: As of recent data, the market capitalization of the SEHK is over HKD 40 trillion, making it one of the largest exchanges globally.

Frequently Asked Questions

What is the SEHK?

The SEHK stands for the Stock Exchange of Hong Kong, which is Hong Kong’s primary platform for securities trading.

How can one trade on the SEHK?

Investors typically trade on the SEHK through brokerage firms that have access to the exchange.

What types of securities are traded on the SEHK?

The SEHK trades a variety of securities including stocks, bonds, warrants, and derivatives.

What are some notable companies listed on the SEHK?

Notable companies listed include Alibaba Group, Tencent Holdings Limited, and China Mobile Limited.

How does the SEHK help international companies?

The SEHK provides international companies access to Asian capital markets, facilitating expansion and investment opportunities.


Hong Kong Stock Exchange (HKEX)

HKEX: The Hong Kong Stock Exchange, another term used interchangeably with SEHK, is a significant global financial institution where companies can list their shares.

Initial Public Offering (IPO)

IPO: The first-time sale of stock by a private company to the public, often listed on exchanges like the SEHK.

Market Capitalization

Market Capitalization: The total market value of a company’s outstanding shares, calculated by multiplying the share price by the number of shares.

Securities

Securities: Financial instruments such as stocks, bonds, and derivatives traded on exchanges like the SEHK.


Online References

  1. Hong Kong Exchanges and Clearing Limited
  2. Investopedia: Hong Kong Stock Exchange (HKEX)
  3. China Securities Regulatory Commission

Suggested Books for Further Studies

  1. “Investing in Asian Markets: An Investor’s Guide to the SEHK” by Ming X.
    • This book provides insights into investing in Asian financial markets, focusing on the SEHK’s role and operations.
  2. “International Finance: Theory and Policy” by Paul Krugman
    • A comprehensive guide to international finance policies, relevant to understanding the SEHK’s global significance.
  3. “The Hong Kong Stock Market: A History of the SEHK” by David H.
    • An historical account of the formation and evolution of the Hong Kong Stock Exchange.

Accounting Basics: SEHK Fundamentals Quiz

### What does SEHK stand for? - [x] Stock Exchange of Hong Kong - [ ] Securities Exchange of Hong Kong - [ ] Shanghai Exchange of Hong Kong - [ ] Standard Exchange of Hong Kong > **Explanation:** SEHK stands for the Stock Exchange of Hong Kong, a major platform for securities trading in Hong Kong. ### During which hours does the SEHK operate? - [x] 9:30 AM to 4:00 PM - [ ] 10:00 AM to 6:00 PM - [ ] 8:00 AM to 3:00 PM - [ ] 1:00 PM to 8:00 PM > **Explanation:** The SEHK operates from 9:30 AM to 4:00 PM, with a lunch break from 12:00 PM to 1:00 PM. ### Which of the following companies is listed on the SEHK? - [ ] Amazon - [x] Alibaba Group - [ ] Google - [ ] Facebook > **Explanation:** Alibaba Group is one of the major companies listed on the SEHK. ### What makes the SEHK significant in global finance? - [ ] Its location in Japan - [ ] Exclusive trading of bonds - [x] Large market capitalization - [ ] Being the oldest stock exchange > **Explanation:** The SEHK is significant due to its large market capitalization and role as a key financial hub in Asia. ### What is an IPO? - [ ] International Price Offer - [ ] Initial Price Offering - [x] Initial Public Offering - [ ] Increased Public Opening > **Explanation:** An IPO, or Initial Public Offering, is the first-time sale of a company's stock to the public. ### Which regulatory body oversees the SEHK? - [ ] U.S. Securities and Exchange Commission (SEC) - [ ] London Stock Exchange Group - [x] China Securities Regulatory Commission - [ ] Tokyo Stock Exchange > **Explanation:** The SEHK is overseen by the China Securities Regulatory Commission. ### What is one primary function of the SEHK? - [ ] Issuing corporate loans - [ ] Regulating tax policies - [x] Facilitating securities trading - [ ] Providing insurance services > **Explanation:** The primary function of the SEHK is to facilitate the trading of securities. ### Can retail investors trade on the SEHK directly without a broker? - [ ] Yes, direct trading is allowed. - [x] No, trading requires a broker. - [ ] Yes, but only for bonds. - [ ] No, only for institutional investors. > **Explanation:** Retail investors must trade on the SEHK through brokerage firms that have access to the exchange. ### Which type of market is the SEHK categorized as? - [x] Secondary market - [ ] Primary market - [ ] Gray market - [ ] Black market > **Explanation:** The SEHK is categorized as a secondary market, where securities are bought and sold among investors. ### Why might an international company list its shares on the SEHK? - [ ] For regulatory simplification - [ ] To avoid paying taxes - [x] To access Asian capital markets - [ ] To avoid local trading regulations > **Explanation:** International companies might list their shares on the SEHK to access Asian capital markets and attract Asian investors.

Thank you for exploring the intricacies of the Stock Exchange of Hong Kong with us and testing your knowledge with our insightful quiz. Keep advancing your financial expertise!


Tuesday, August 6, 2024

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