The Hong Kong Stock Exchange is a trading platform on which stocks and other securities of Asian companies are quoted. These are mainly securities of Chinese, Hong Kong, Thai, Filipino, Japanese and American companies. In total, securities of 25 countries are traded on the stock exchange. The main office of the exchange in Hong Kong is located, which gave it its name.
Who can place securities on the 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 accepted on the Hong Kong stock exchange and are added to the stock exchange's register of securities. In order for the shares of a company to be taken into consideration 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 should be at least 2.2 million US dollars and at least 3.7 million - two years before the placement.
The company must provide the exchange with its financial statements prepared in accordance with the Hong Kong Accounting Rules and International Financial Reporting Standards (IFRS). There are also requirements for the audit conducted at the enterprise. The audit should be conducted either by Hong Kong audit firms or those recommended by the management of the Hong Kong Exchange.
Preliminary check
Before adding a company to the register, the exchange management directs specialists to verify 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 the assessment of accounting for compliance with financial statements adopted by the Hong Kong exchange standards. Only after this the shares are added to the register of securities and put up for sale. Shares are offered at a price determined by the board of directors of the enterprise, after which the market sets quotes on the Hong Kong stock exchange.
Such tight control may be inconvenient for companies issuing shares, but it is beneficial for investors. They can be sure that they are investing in successful operating enterprises.
Who has the right to make transactions on the exchange
Trading operations can be performed by traders and brokers at the direction of their customers. Dealers can also work on the Hong Kong stock exchange. Dealers are players who have enough money to start independent trading.
Trading on the exchange is available to everyone who has enough funds for an initial deposit on a deposit, the amount of which depends on the chosen broker. Most often, this amount is from two to five thousand US dollars. In most cases, brokers provide their clients with special software for trading. The fee for transactions on the Hong Kong exchange, as well as the rules of trade, are approximately the same as on the London or New York stock exchanges.
Where can I find out about market conditions
Information on what securities and at what price are listed on the Hong Kong exchange at a certain moment can be found directly on the website or in the terminal program window for trading on the exchange provided by the broker. You can also find out about the state of trading at the moment by phone with a broker. But it’s better to get information either on the official website or in the window of the trading platform.
A daily news feed from the Hong Kong exchange is maintained and updated on the site. In addition to prices and company names, users are also available information on the latest news, factors influencing the price level.
Traders who want to work on the exchange are also provided with training materials. Unfortunately, all information is provided in English and Chinese. But even if the trader does not know English, it does not matter, you can use special applications and automatic translation extensions.
Information in Russian about trading on the Hong Kong Stock Exchange can be found on the FINAM website. This is one of the few brokerage firms that provides its customers with access to international markets, including Hong Kong. And although the company is mercilessly criticized for high commissions, there are no analogues to it in the Russian market of brokerage services yet.
How is trading on the exchange
Trading on the Hong Kong Stock Exchange begins at 5 a.m. Moscow time and ends at 12 p.m. It takes place from Monday to Friday. On Friday, the stock exchange closes 2 hours earlier.
The Asian securities market, although it is 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 sites, time is not particularly valued here. The Hong Kong exchange does not always open at the same time. That is, it can open a little earlier or later. Otherwise, trading on it is no different from trading on other stock markets.
In order to start, a trader needs to register with a brokerage company. For Russians, access to the East Asian market is possible from the FINAM official website. First you need to install the appropriate application. FINAM offers the MMA Web 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 not only gives traders access to the exchange, it contains basic market analysis tools.
Hong Kong Rating Agencies
The rating of the exchange is made by Hang Seng on the basis of shares of 34 companies, which make up 65% of the total turnover of funds in the market. Using these indicators, the agency compiles the Hong Kong Stock Exchange Index. The index is the average value obtained from the study of 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 in 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 stock exchange?
It should distinguish between the international currency market and this exchange. Foreign exchange market - an international currency market on which banknotes of different countries are quoted. The fact that you can buy a Hong Kong dollar there does not make this exchange Hong Kong. Here's how it goes.
On the Hong Kong Stock Exchange, you can purchase stocks and other securities in US or Hong Kong dollars. There are other platforms for cryptocurrency trading in this country - specialized exchanges on the Internet. Cryptocurrency is not used on the Hong Kong exchange.
Where in Hong Kong can you 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. In addition to bitcoins, the following is traded on this exchange:
- Ziash.
- Ripple
- Factom.
- Ethereum and others.
On BitMex, speculators can access financial leverage - a credit wing in the amount of 1: 1 to 1: 100. Although in China itself it is allowed to trade authorized bikes and other cryptocurrencies only with specialized financial organizations, there is a certain freedom in Hong Kong with this. The only limitation can be the fact that the rate of bitcoin and many other cryptocurrencies has grown significantly in recent years, and therefore it has become more difficult to acquire.