The full name of the Hong Kong Stock Exchange is Hong Kong Exchanges and Clearing Limited. Hong Kong Stock Exchange (HKEx for short) is a holding company listed in China and Hong Kong, and is one of the major exchanges in the world.
Institutional function
Inventory delivery:
Hong Kong Exchanges and Clearing Limited (3) Hong Kong Securities Clearing Company Limited was incorporated on 1989, and its central clearing and settlement system was put into service on 1992, becoming the central clearing counterparty of all clearing system participants.
The operation of central clearing is based on illiquid stocks deposited in the central depository. The share settlement is completed by continuous net settlement, through the share accounts of participants in the central clearing and settlement system, and by electronic deposit and deduction. All share transactions between participants in the central clearing system need to be settled on the second trading day (T+2) after the transaction. Hong Kong Clearing also provides agency services.
Settlement and delivery
The settlement and delivery procedures of various products of HKEx are handled by Hong Kong Clearing House, Options Clearing Company and Futures Clearing Company respectively. Among them, the Hong Kong Clearing House is responsible for the settlement and settlement of qualified securities traded on the main board of the Stock Exchange and the Growth Enterprise Market.
Continuous net settlement system
Hong Kong adopts a continuous netting system. Under the continuous net settlement system, each CCASS participant who buys or sells securities from other CCASS participants will use rolling offset to offset the remaining net purchases or net sales of shares as the settlement standard. Transactions paired or declared by exchange participants through the automatic matching system must be settled with the central settlement system before 3: 45 pm on the second trading day after each trading day (T day), which is generally called the "T+2" daily settlement system (i.e. transaction/trading day plus two trading days).