What is HKEx?
Hong Kong Exchanges and Clearing Limited (HKEx) is a global market operator and publicly listed holding business. Its subsidiaries include the Hong Kong Stock Exchange and the Futures Exchange. HKEx oversees four Hong Kong clearing houses and the London Metal Exchange (LME), making it a significant worldwide financial organization.
Learning about Hong Kong Exchanges and Clearing Limited (HKEx)
Created in 2000, Hong Kong Exchanges and Clearing Limited (HKEx) focuses on reforming and overseeing stock and futures markets in Hong Kong.
The Hong Kong Stock Exchange, Futures Exchange, and Securities Clearing Company merged to become HKEx. The combination aimed to boost China’s global competitiveness.
The company now focuses on three complementary markets. The Stock Exchange of Hong Kong, the Hong Kong Futures Exchange, and the London Metal Exchange are the company’s primary marketplaces. This structure allows HKEx to capitalize on Hong Kong and London, two of the world’s largest financial centers.
As of October 2020, the market valuation was $43.3 trillion, with 2,524 listed businesses.
HKEx’s functions
The business helps Hong Kong, China, and global issuers raise financing. Its primary services include listing, trading, clearing, market data, reference prices, and connection.
HKEx has four clearing houses: SEHK Options Clearing House Limited (SEOCH), OTC Clearing Hong Kong Limited (OTC Clear), HKSCC, and HKFE Clearing Corporation Limited.
HKEx regulates Hong Kong-listed firms and their traders. The corporation takes pleasure in its well-organized and controlled investment market.
Hong Kong Exchanges and Clearing Limited’s (HKEx) listing
HKEx deals in stocks, bonds, warrants, REITs, mutual funds, ETFs, and equity-linked securities. To trade on HKEx’s main board, companies must pass one of three tests: profit, market cap, and revenue, or market cap, revenue, and cash flow.
Profit test companies must have a three-year aggregate profit of HK$50 million and a market valuation of HK$500 million.
A company’s latest sales must be HK$500 million, and its market valuation must be HK$4 billion to pass the test.
The market cap, revenue, and cash flow test requires a firm to have HK$500 million in recent revenue, HK$2 billion in market cap, and HK$100 million in positive three-year aggregate cash flow.
In addition, interested parties must have three years of management continuity, 300 shareholders, and semi-annual financial reporting.
Conclusion
- Hong Kong Exchanges and Clearing Limited (HKEx) is a public holding corporation with some of the world’s leading market institutions.
- HKEx runs the Stock Exchange, the Hong Kong Futures Exchange, the London Metal Exchange, and four Hong Kong clearing houses.
- HKEx is one of the world’s largest and most well-capitalized market operators, with $43.3 trillion in assets as of October 2020.
- Listing, trading, clearing, market data, reference pricing, and connection are HKEx’s primary services.
- HKEx regulates Hong Kong-listed firms and their traders.
- Hong Kong Exchanges and Clearing Limited’s (HKEx) main board requires companies to pass a profit, market cap, revenue, or cash flow test.
