Hong Kong Exchanges and Clearing Limited (HKEx)
The Financial Secretary announced in his 1999 Budget speech that Hong Kong’s securities and futures markets would undergo comprehensive Reform to enhance Hong Kong's competitiveness and meet the challenges brought about by market globalization.
According to the reform plan, the Stock Exchange of Hong Kong Limited (the Stock Exchange) and the Hong Kong Futures Exchange Limited (the Hong Kong Futures Exchange) will be demutualized and merged with the Hong Kong Securities Clearing Company Limited (Hong Kong Clearing Company). Owned by a single holding company, Hong Kong Exchanges and Clearing.
In the financial services industry and financial market, strong institutions have been integrating in recent years to actively cater to the needs of various market participants.
HKEx is the holding company of The Stock Exchange of Hong Kong Limited, Hong Kong Futures Exchange Limited and Hong Kong Securities Clearing Company Limited. These market institutions have been committed to leading Hong Kong's financial services industry to break through geographical boundaries and transform it into an important player in today's global market. Hong Kong Exchanges and Clearing Limited has combined their experience and wisdom into one.
With the demutualization of the securities and futures exchanges and the merger with the relevant clearing companies, the Hong Kong Stock Exchange was listed in June 2000. As a listed company that is accountable to its shareholders, HKEx is actively seizing opportunities emerging in Asia and around the world to develop business. HKEx will be market-based and manage the markets dominated by various businesses.
HKEX has an efficient commercial operation structure. Its business is divided according to functions, forming business departments that focus on business and take commercial considerations as the mainstay. The management and board members of HKEX Direct management. The Board of Directors of HKEx is the highest decision-making body and formulates relevant policies on major strategic and operational matters.
HKEX provides a wide range of pre-trade and post-trade investment services. Its business departments include the Trading Market Department, Settlement Department, Business Development Department, Information Services Department and Information Technology Department, all of which are committed to providing value-added services to investors, market intermediaries and listed companies.
Regulation and Disclosure
As financial markets around the world move toward globalization and the old boundaries between markets and market participants become increasingly blurred, Hong Kong Exchanges and Clearing has infused regulatory rules into flexibility and actively support the creation of new products and services.
HKEx will be committed to fulfilling its mandate to ensure fair and orderly market operations and prudent risk management. At all times, HKEx will act in the public interest, especially in the interest of the investing public.
The integrated structure of the Hong Kong Exchange, coupled with the effective supervision of the Hong Kong Securities and Futures Commission, has made the operation of the Hong Kong market more perfect. Our market's ability to maintain a good reputation and continue to achieve great success depends on fair and effective enforcement of regulations by regulators.
Our supervision is flexible and responsive, and can provide the market with multi-faceted support to keep pace with world development trends and the needs of investors around the world; and appropriately coordinate with innovative financial products and services , emerging industries and changes in international financial market practices.
Today, the regulatory mechanism of the fund-raising market has gradually shifted from the traditional one based on review by regulatory agencies to one based on disclosure. The regulatory approach aims to ensure full and fair disclosure of all material facts so that investors can make well-informed investment decisions.
Prospects and Outlook
The Hong Kong Exchange is the most effective channel for mainland Chinese companies to raise international funds. The partnership and mutual cooperation between Hong Kong and other securities markets are therefore more important to mainland China. significance, and the investment of equity capital is even more important for promoting economic modernization and market liberalization.
The establishment of the Hong Kong Exchange is a strong demonstration of Hong Kong’s commitment to maintaining its leading position in the international financial market. Looking at the development trends of financial markets in Asia and around the world, it is clear that the development potential of Hong Kong Exchange is unlimited.
The reintegrated market structure, backed by huge resources, will ensure that Hong Kong maintains its position as the most important market, providing major hedging and risk management facilities to market users, while also providing funds to promote the development of China . At the same time, driven by the spirit of continuous advancement, Hong Kong will develop into a major international market with high capital circulation and low transaction costs.
Building on the solid foundation that has been established, HKEX and Hong Kong’s enterprising and strong financial community will work together to achieve their commitment to developing into a major international financial institution.
The three companies completed the merger on March 6, 2000, and the Hong Kong Stock Exchange was listed on the Stock Exchange by introduction on June 27, 2000.
Securities Market
Securities trading in Hong Kong first appeared in the mid-19th century. However, it was not until the establishment of the Hong Kong Brokers Association in 1891 that Hong Kong had a formal securities trading market. The association was renamed the Hong Kong Brokers Association in 1914.
The second exchange in Hong Kong - the Hong Kong Stock Exchange of Commerce was incorporated in 1921. The two merged to form the Hong Kong Stock Exchange in 1947, and worked together to rebuild the Hong Kong stock market after World War II.
Since then, Hong Kong's rapid economic development has led to the establishment of three other exchanges - the Far East Exchange in 1969; the Gold and Silver Stock Exchange in 1971; and the Kowloon Stock Exchange in 1972.
Under the pressure of strengthening market supervision and merging the four exchanges, the Stock Exchange of Hong Kong Limited was incorporated in 1980. The era of the Four Exchanges came to an end on March 27, 1986, and the new exchange began operations on April 2, 1986, using a computer-assisted trading system for securities trading. Before the merger was completed in March 2000, the Stock Exchange had 570 member companies.
Derivatives Market
Hong Kong Futures Exchange Limited was established in 1976 and is the main derivatives exchange in the Asia-Pacific region. The Futures Exchange provides an efficient and diversified market that allows investors to trade futures and options contracts through more than 130 exchange participants, many of which are affiliates of international financial institutions.
The derivatives market under the Hong Kong Exchange provides a trading market for various futures and options products. These derivatives include stock index, stock and interest rate futures and options products. HKEx and its subsidiaries Hong Kong Futures Clearing Limited and The Stock Exchange Options Clearing House Limited implement a rigorous risk management system to enable exchange participants and their customers to trade in a highly liquid and well-regulated market. , conduct investing and hedging activities.
Stock Settlement
Hong Kong Securities Clearing Company Limited was incorporated in 1989, and its central clearing and settlement system was put into service in 1992, becoming the central clearinghouse for all clearing system participants. Close the opponent.
CCDC operates based on illiquid stocks deposited in a central depository. The settlement of shares is completed in the form of continuous net settlement through electronic deposits or debits from the share accounts of CCASS participants. All share transactions between CCASS participants need to be settled on the second trading day (T+2) after the transaction is completed.
Hong Kong Clearing also provides agent services.