The Hong Kong Stock Exchange, as the name suggests, is the stock exchange of Hong Kong. With a market capitalization of over US $1.87 trillion the Hong Kong Stock Exchange ranks seventh in the world stock exchanges.
The Evolution of the Hong Kong Stock Exchange may be tracked under the following head:
Evolution of Hong Kong Stock Exchange:
The Association of Brokers was founded in 1891.
In 1914 the Association of brokers was renamed as the Hong Kong Stock Exchange
The Hong Kong Shareholders Association Ltd was established in 1978 for the sharing of information between the Hong Kong Stock Exchange and the other exchanges.
In 1986 the Hong Kong Stock Exchange merged with the other exchanges but continued to be known as the Hong Kong Stock Exchange. The other exchanges were Far East Exchange Limited, Kam Ngan Stock Exchange Limited and the Kowloon Stock Exchange Ltd. It also presented itself as the Stock Exchange of Hong Kong.
In 2000 the Hong Kong Exchanges and Clearing became the holding company of the Hong Kong Stock Exchange. The held the Hong Kong Futures Exchange established in 1976 and the Hong Kong Securities Clearing Company Ltd established in 1989.
Products of the Hong Kong Stock Exchange
The products offered by the Hong Kong Stock Exchange are issued by the securities and the derivatives market.
The following are the products of the Hong Kong Securities Market
- Equity: The equity securities are basically of two types that are issued by the Hong Kong Stock Exchange. They are ordinary and preference shares.
- Derivative Warrant Resource Center
The Derivative Warrant Resource Center confirms the information provided by the Derivative market. They are not responsible for any loss that may arise out of inaccuracy of information.
- Callable Bear or Bull Contracts
- Listed Equity Linked InstrumentsThe Listed Equity Linked Instruments are structured products that are issued by banks and other financial institutions. These products are tailored for retail and institutional investors who want to earn an interest rate higher than the rate of the ordinary time deposits. There are three types of ELIs that are traded in the Hong Kong Stock Exchange and they are Bull , Bear and Range.
- Exchange Traded Funds
- Unit Trust or Mutual Funds
- Bonds
- Pilot Program for trading US securities
The Callable Bear or Bull Contracts are structured products. This keeps track of the performances of the underlying asset. This does not require the investors to pay the full price that is required to purchase the actual asset. The investors who enter such a contract take either a bullish or a bearish position. These contracts have fixed expiry dates that are issued by a third party, generally an investment bank.
The derivative market products include the Risk Disclosure Statement, Equity Index Products, Equity Products, Fixed income and interest rate products.
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