Hong Kong Exchanges and Clearing Limited (HKEx)

What Is Hong Kong Exchanges and Clearing Limited (HKEx)?

Hong Kong Exchanges and Clearing Limited (HKEx) is a public holding company that is one of the biggest market administrators in the world. Its auxiliaries incorporate the Stock Exchange of Hong Kong and the Hong Kong Futures Exchange. HKEx additionally oversees four clearing houses in Hong Kong and the London Metal Exchange (LME), making it an important institution in the global financial markets.

Grasping Hong Kong Exchanges and Clearing Limited (HKEx)

Hong Kong Exchanges and Clearing Limited (HKEx) was made in 2000, as the consequence of a greater accentuation on complete reform and oversight connected with stock and futures markets in Hong Kong.

HKEx was formed through the merger of the Hong Kong Stock Exchange, the Hong Kong Futures Exchange, and the Hong Kong Securities Clearing Company. The merger was intended to increase China's seriousness in the global market.

Today, the corporate structure centers around three fundamental markets that are integrated to form a complementary gathering. These core markets, which incorporate two of the company's original parts, are the Stock Exchange of Hong Kong, the Hong Kong Futures Exchange, and the London Metal Exchange (LME). This current cosmetics permits the HKEx to position itself in a manner to exploit two of the world's leading financial centers, Hong Kong and London.

As of October 2020, it has a market cap of $43.3 trillion with 2,524 listed companies.

Elements of Hong Kong Exchanges and Clearing Limited (HKEx)

The company is a global platform for raising capital for issuers situated in Hong Kong, all through China, and around the world. Its principal services incorporate listing, trading, clearing, market data, reference prices, and availability.

HKEx works four clearing houses: SEHK Options Clearing House Limited (SEOCH), OTC Clearing Hong Kong Limited (OTC Clear), Hong Kong Securities Clearing Company (HKSCC), and HKFE Clearing Corporation Limited (HKCC).

HKEx likewise fills in as a directing body, supervising the trading activities of companies listed in Hong Kong and the people who take part in trading activities inside its setting. The company prides itself on keeping an efficient and firmly controlled marketplace for investors.

Listing on Hong Kong Exchanges and Clearing Limited (HKEx)

HKEx trades in stocks, bonds, warrants, REITs, mutual funds, exchange-traded funds (ETFs), and equity-linked instruments. To be traded on HKEx's primary board, a company must fulfill one of three tests: a profit test, a market cap and revenue test, or a market cap, revenue, and cash flow test.

The profit test requires a company to have a three-year aggregate profit of HK$50 at least million and a market cap of HK$500 at least million.

The market cap and revenue test requires a company's most recent revenue figures to be HK$500 at least million and to have a market cap of HK$4 at least billion.

The market cap, revenue, and cash flow test specifies that a company must have its most recent revenue figures be HK$500 at least million, a market cap of HK$2 billion or higher, and a positive three-year aggregate cash flow of HK$100 at least million.

Different requirements incorporate a closely involved individual to have management continuity of three years, at least 300 shareholders, and semi-annual financial reporting, among different requirements.

Features

HKEx is one of the biggest and very much capitalized market administrators in the world with a market cap of $43.3 trillion as of October 2020.
HKEx works the Stock Exchange of Hong Kong, the Hong Kong Futures Exchange, the London Metal Exchange, and four clearing houses in Hong Kong.
To be remembered for Hong Kong Exchanges and Clearing Limited's (Hkex's) fundamental board, an intrigued company must breeze through one of three assessments: a profit test, a market cap and revenue test, or a market cap, revenue, and cash flow test.
HKEx likewise fills in as a directing body, supervising the trading activities of companies listed in Hong Kong and the people who partake in trading activities inside its scene.
The primary services of HKEx incorporate listing, trading, clearing, market data, reference prices, and availability.
Hong Kong Exchanges and Clearing Limited (HKEx) is a public holding company that is made out of probably the biggest market institutions in the world.