Hong Kong Stock Exchange was established at the end of the 19th century. The Hong Kong Stock Exchange is placed at position number 8 in the world. The total securities market capitalization of the Hong Kong Stock Exchange is presently equals to HK$ 8,260.3 billion, which is approximately US$ 1,063.9 trillion. The total market turnover of the Hong Kong Stock Exchange in the year 2005 was equal to HK$ 4,520.4 billion. There are a total of 4338 stocks that are listed on the Stock Exchange of Hong Kong.
The turnover of the Hong Kong Stock Exchange has increased considerably over the past one year by 14%. The main contributors of the market turnover are the local retail investors and the institutional investors. They contribute 56% of the total turnover. The leading derivatives market of the Hong Kong Stock Exchange is in the region of Asia Pacific. The daily turnover at the Asia Pacific market of the Stock Exchange in Hong Kong is equal to 103.332 contracts every day. In the year 2004, the daily turnover in the Asia Pacific region has increased by 30%.
The Stock Exchange Hong Kong Limited, Hong Kong Securities Clearing Company Limited and Hong Kong Futures Exchange Limited merged together under the Hong Kong Stock Exchange in the year 2000. In June 2000, the Hong Kong Exchange or the HKEx numbered its shares on the Stock Exchange.
The entire system of trading at the Hong Kong Stock Exchange is an order-driven one and there are two platforms of trading. These two platforms are the Growth Enterprise Market (GEM) and the Main Board. Both the platforms have different set of requirements. The Growth Enterprise Market has a separate venue for the purpose of fund raising for the high risk, high growth companies. The Main Board provides the market for the capital growth of the established companies, which are able to meet the requirements for profit.
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The Trading Terminal, Broker Supplied System ('BSS'), Multi-Workstation System ('MWS') and the Order Routing System ('ORS') are the four companies with the help of which the Hong Kong Exchange developed a trading system in the year 2000. The trading system was known as AMS/3. The investors can place their requests electronically due to the help by the ORS. Although most of the trading takes place via the Trading Hall, the exchange participants can also trade from their respective office. The off-floor terminals have promoted this kind of trading process of Hong Kong Stock Exchange.
The association of brokers was established in the year 1891. The association of the brokers was later renamed as the Hong Kong Stock Exchange in the year 1914. The year 1978 witnessed the establishment of the Hong Kong Shareholders Association Limited for the purpose of sharing information between other exchanges and the Hong Kong Stock Exchange. In the year 1986, the merging of the Hong Kong Stock Exchange took place, with other exchanges. Even after merging with Kam Ngan Stock Exchange Limited, the Kowloon Stock Exchange Ltd and Far East Exchange Limited, the exchange retained its name.
The Hong Kong Futures Exchange was established in the year 1976 while the Hong Kong Securities Clearing Company Limited was established in the year 1989. The Hong Kong Exchanges and Clearing took possession of the Hong Kong Stock Exchange in the year 2000.
The products of the Hong Kong Securities Market are listed below:
Equity - The equity Hong Kong securities usually consist of two types. Both of these securities are published by the Hong Kong Stock Exchange and are preference and ordinary shares.
Derivative Warrant Resource Center
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