Hong Kong stock exchange: stock market information

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The Hong Kong Stock Exchange is a trading platform that lists stocks and other securities of Asian companies. Basically, these are securities of Chinese, Hong Kong, Thai, Filipino, Japanese and American companies. In total, securities of 25 countries are traded on the stock exchange. The head office of the exchange is located in Hong Kong, which gave it such a name.

Who can place securities on the stock exchange

Not all companies can get the opportunity to place their shares and contracts (options, futures, etc.), but only those that comply with the rules adopted on the Hong Kong stock exchange and are added to the securities register of the stock exchange. In order for the shares of a company to be considered and added to the index, it must have certain characteristics. One of the important conditions is the company's revenue. For the reporting year, it must be at least 2.2 million US dollars and at least 3.7 million - two years before the placement.

A company must provide the stock exchange with its financial statements prepared in accordance with Hong Kong accounting rules and International Financial Reporting Standards (IFRS). There are also requirements foraudit conducted at the enterprise. The audit must be carried out either by Hong Kong accounting firms or by those recommended by the management of the Hong Kong stock exchange.

Preview

Before adding a company to the register, the management of the exchange sends specialists to check the operation of the enterprise. This is not an audit in the classical sense. Specialists help the company in the preparation of documents, check the financial documentation of the enterprise. Only after checking and analyzing the work of the company obtained during the inspection and study, a decision is made whether or not to put the shares of this company on the market.

Verification is carried out very carefully. It includes not only the study of documents, but also an assessment of accounting for compliance with financial statements adopted on the Hong Kong stock exchange. Only after that the shares are added to the securities register and put up for sale. Shares are listed at a price determined by the company's board of directors, after which the market sets the price on the Hong Kong stock exchange.

Such tight control may be inconvenient for companies that issued shares, but it is beneficial for investors. They can be sure that they are investing in existing successful businesses.

Who has the right to make transactions on the stock exchange

Trading operations can be performed by traders and brokers at the behest of their clients. Dealers can also work on the Hong Kong stock exchange. Dealers are players who have enough funds to start trading on their own.

Trading on the stock exchange is available to anyone who has enough funds for an initial deposit on a deposit, the amount of which depends on the chosen broker. Most often, this amount ranges from two to five thousand US dollars. In most cases, brokers provide their clients with special software for trading. Commission for transactions on the Hong Kong exchange, as well as trading rules, are approximately the same as on the London or New York exchange.

Where you can find market information

Information about what securities and at what price at a certain moment are quoted on the Hong Kong stock exchange, you can find out directly on the site, or in the window of the terminal program for trading on the stock exchange, provided by the broker. You can also find out about the state of trading at the moment by calling the broker. But it is better to get information either on the official website or in the trading platform window.

The website maintains and updates an information feed from the Hong Kong stock exchange daily. In addition to prices and company names, users also have access to information about the latest news, factors affecting the price level.

For traders who want to work on the exchange, educational materials are also provided. Unfortunately, all information is provided in English and Chinese. But even if a trader does not know English, it does not matter, you can use special applications and automatic translation extensions.

Information in Russian about the auctionon the Hong Kong Stock Exchange can be found on the FINAM website. This is one of the few brokerage firms that provides its clients with access to international markets, including Hong Kong. And although the company is mercilessly criticized for high commissions, it has no analogues on the Russian brokerage market yet.

How trading works on the stock exchange

Trading on the Hong Kong stock exchange starts at 5 am Moscow time and ends at 12 noon. It takes place from Monday to Friday. On Friday, the exchange closes 2 hours earlier.

The Asian securities market, although considered one of the most reliable, has some specific features, which are mainly due to the culture and mentality of the inhabitants of the East. Unlike European venues, time is not particularly valued here. The Hong Kong Stock Exchange does not always open at the same time. That is, it may open a little earlier or later. Otherwise, trading on it is no different from trading on other stock markets.

To get started, a trader needs to register with a brokerage company. For Russians, access to the East Asian market is possible from the official website of FINAM. First you need to install the appropriate application. FINAM offers the MMA Web online platform for trading on the Hong Kong stock exchange. The program does not need to be installed on the computer. It is enough to register on the site and open an account. This online application gives traders not only access to the exchange, it contains the main toolsmarket analysis.

Hong Kong rating agencies

The rating of the exchange is compiled by the Hang Seng agency based on the shares of 34 companies, which make up 65% of the total turnover on the market. Using these indicators, the agency forms the index of the Hong Kong Stock Exchange. The index is an average value obtained as a result of studying the market capitalization. It gives an idea of the size of the market and the direction of its development.

The indices used on the Hong Kong Stock Exchange were first developed by banker Stanley Kwan and introduced by HSI Services Limited in 1969. They can be evaluated as the main indicator of the activity of the entire exchange, and not of a single company. Since securities of different countries are traded on the stock exchange, these indices do not reflect the state of the Hong Kong economy. They are valuable on the scale of the global economy. The news that the index has decreased or increased affects other markets, including those operating in other countries.

Do they sell cryptocurrency on the Hong Kong exchange

It is necessary to distinguish between the international currency market and this stock exchange. The foreign exchange market is an international currency market where banknotes of different countries are quoted. The fact that you can buy Hong Kong dollars there does not make this exchange Hong Kong. Here's how it works.

On the Hong Kong stock exchange, you can buy shares and other securities for US or Hong Kong dollars. For cryptocurrency trading in this country, there are otherplatforms - specialized exchanges on the Internet. Cryptocurrency is not used on the Hong Kong exchange.

Where in Hong Kong you can trade cryptocurrency

Cryptocurrency is traded on a special exchange. One of the most famous Hong Kong bitcoin exchanges is Bitfinex. It is the largest: more than 60% of all bitcoins sold in Hong Kong are traded on this exchange. Another, but smaller, cryptocurrency exchange is BitMex. On this exchange, in addition to bitcoins, they trade:

• Ziash.
• Ripple.
• Factom.
• Ethereum and others.

On BitMex, financial leverage is available to speculators - a credit wing ranging from 1:1 to 1:100. Although in China itself only specialized financial institutions with permission are allowed to trade bitcoins and other cryptocurrencies, in Hong Kong there is a certain freedom with this. The only limitation may be the fact that the price of bitcoin and many other cryptocurrencies has increased greatly in recent years, and therefore it has become more difficult to purchase.