Hong Kong Stock Exchange (HKG) .HK

Hong Kong Stock Exchange (HKG / SEHK): Overview

The Hong Kong Stock Exchange (often referred to by its market code .HK or SEHK) is Hong Kong’s primary securities exchange and one of the world’s largest markets by market capitalization. It operates as a subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), a publicly traded holding company that also owns the Hong Kong Futures Exchange and the Hong Kong Securities Clearing Company.

What the exchange lists

The exchange offers a broad range of securities:
* Equities (including Hong Kong and mainland China issuers)
* Debt securities
* Derivatives and options
* Exchange-traded products (ETPs) and ETFs
* Real estate investment trusts (REITs)
* Warrants

Many of the largest listings are major Chinese banks, insurers and large conglomerates—Tencent Holdings is one of the highest market-cap companies on the exchange.

Market size and listings

As of January 2024:
* HKEX’s combined market capitalization was about $3.97 trillion.
* There were roughly 2,609 listed entities on HKEX platforms, including about 2,428 domestic and 181 foreign companies.

In January 2024 India’s market capitalization briefly surpassed Hong Kong’s, making Hong Kong the world’s fifth-largest market at that time.

Trading hours

Standard securities trading (local time):
* Pre-opening session: 9:00 a.m. – 9:30 a.m.
* Regular trading: 9:30 a.m. – 4:00 p.m.
* Short close-out auction window: usually immediately after 4:00 p.m.

Derivatives:
* Typically trade from about 9:15 a.m. to 4:30 p.m., with some contracts taking a noon break.
* Extended after-hours derivative trading may run into the evening and early morning for certain products.

The exchange is closed on major Hong Kong public holidays.

Special considerations

H-shares and mainland listings
* Many mainland Chinese companies list in Hong Kong as H-shares, using the exchange as a primary route to raise international capital.
* Hong Kong remains a leading venue for companies from both Hong Kong and mainland China seeking access to global investors.

Listing thresholds
* Since 2017 the exchange has required minimums to strengthen liquidity and issuer quality: a minimum market capitalization for listing of HK$500 million and a minimum public float value of HK$125 million.

Brief history

• 1891: Formal securities trading begins with the Stockbrokers’ Association of Hong Kong.
• 1914: Name changed to the Hong Kong Stock Exchange.
• 1947: Merger with the Hong Kong Stockbrokers’ Association restores operations under the Hong Kong Stock Exchange name.
• 1993: Introduction of automated order systems.
• 1995: Options trading begins.
• 2000: The Hong Kong Stock Exchange merges with the Hong Kong Futures Exchange and the Hong Kong Securities Clearing Company to form HKEX, a publicly traded holding company.
• 2017: The physical trading floor is closed as electronic trading becomes dominant.

How to invest in Hong Kong securities

Options for international and domestic investors:
* Buy ETFs or mutual funds that hold Hong Kong securities.
* Invest in American Depositary Receipts (ADRs) of Hong Kong companies listed on U.S. exchanges.
* Purchase shares directly on the Hong Kong Stock Exchange through a brokerage that offers international trading.
* Use index funds tied to Hong Kong or broader Asia indices.

If you are a foreign investor interested in direct trading, contact your brokerage to confirm whether you can open an account with international access and to understand currency, tax and regulatory considerations.

Quick FAQs

Q: Who owns the Hong Kong Stock Exchange?
A: The exchange is owned and operated by Hong Kong Exchanges and Clearing Limited (HKEX), a publicly traded holding company.

Q: Can foreign investors trade on the exchange?
A: Yes. Many international brokers provide access to Hong Kong markets. Requirements vary, so check with your broker.

Q: What is an H-share?
A: An H-share is a share of a company incorporated in mainland China and listed on the Hong Kong Stock Exchange, denominated in Hong Kong dollars and subject to Hong Kong listing rules.

Conclusion

The Hong Kong Stock Exchange is a central hub for capital raising and trading in Asia, especially for companies from Hong Kong and mainland China. Its diverse product set, significant market capitalization, and global investor access make it a key venue for both regional and international market activity.