Hong Kong Stock Exchange (HKG) .HK
Contents
Exploring the Hong Kong Stock Exchange (HKG) .HK: A Comprehensive Guide
A Brief History of the Hong Kong Stock Exchange
The Hong Kong Stock Exchange (HKG) .HK, a pivotal component of the HKEX Group, has served as a prominent platform for capital raising activities for both Hong Kong and Mainland Chinese companies. With roots dating back to the establishment of China's inaugural formal securities market in 1891, the exchange has evolved significantly over the decades. It saw the introduction of automated ordering in 1993, followed by stock option trading in 1995. In 2000, the Hong Kong Stock Exchange merged with the Hong Kong Futures Exchange and the Hong Kong Securities Clearing Company to form the publicly-traded entity known as Hong Kong Exchanges and Clearing Ltd. Despite its historical significance, the exchange ceased physical trading floor operations in 2017, transitioning primarily to electronic trading mechanisms.
The Significance of the Hong Kong Stock Exchange (HKG) .HK
As one of the largest markets in Asia, the Hong Kong Stock Exchange boasts an impressive roster of over 2,500 listed companies as of November 2020, a notable increase from 1,200 in 2008. The aggregate market capitalization of these listed entities surpassed HK$45.5 trillion by the same period. This exponential growth has been largely fueled by the surge in listings by Mainland Chinese companies, commonly referred to as 'H-shares.' These listings have been instrumental in paralleling the remarkable economic ascent of China. To maintain the integrity of the exchange, the Hong Kong Stock Exchange implemented minimum market capitalization and public float requirements in 2017, setting the bar at HK$500 million and HK$125 million, respectively.
Key Players and Market Dynamics
The Hong Kong Stock Exchange is home to several prominent players in the financial landscape, with banking and insurance giants from Mainland China featuring prominently. Notable entities include Industrial and Commercial Bank of China, China Construction Bank, Bank of China, and Ping An Insurance. However, standing tall among them is Tencent Holdings, the Chinese internet juggernaut, occupying the top spot in terms of market capitalization as of November 2020.