When investors use the Hong Kong Stock Connect account for trading, they use the RMB capital account, while when buying Hong Kong stocks, they need Hong Kong dollars. At this time, investors need to exchange RMB for Hong Kong dollars first, and then use these Hong Kong dollars to buy Hong Kong stocks. When investors sell, the shares will be converted into Hong Kong dollars, and then the Hong Kong dollars will be converted into RMB through institutions and credited to your capital account. Every transaction, investors need to go through an exchange process. Therefore, when trading with investors in Hong Kong Stock Connect, there will be exchange risk in exchange rate. There is also a situation where investors buy and sell in the opposite direction to the market price, resulting in stock price fluctuations and losses.
I. Components
The main component of Hong Kong's securities market is the stock market, which is divided into the main board market and the Growth Enterprise Market. By the end of 2000, the combined market value of the main board and the Growth Enterprise Market reached HK$ 4,862 billion, ranking 1 1 among the major stock exchanges in the world and second in Asia.
Second, derivative varieties
1. There are many kinds of derivatives in the Hong Kong market, which can be mainly divided into five categories: stock index derivatives, stock derivatives, foreign exchange derivatives, interest rate derivatives and warrants.
2. Almost all funds incorporated in Hong Kong are open-end funds. For investors, they can get their money back at any time, which has good liquidity and is particularly attractive to overseas investors. According to the classification of the Hong Kong Monetary Authority, the bond market in Hong Kong can be divided into two categories: the RMB bond market issued and traded in Hong Kong and the foreign currency bond market. Among them, exchange fund bonds and bond issuance plan bonds are the most representative in the Hong Kong dollar bond market, and long bonds are the most representative in the foreign currency bond market.
Relying on the rapid development of the mainland economy, Hong Kong has become the fastest-growing international financial center in Asia. The scale of HKEx has expanded rapidly, and its ranking in global exchanges has been continuously improved.
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