With our base in the city and our team’s extensive knowledge of the Asia-Pacific region, GIS HK delivers execution, global clearing,  safe custody, and prime solutions to stockbrokers, proprietary trading firms, fund managers, hedge funds, family wealth offices and other professional investors. 

Working in some of the world’s most dynamic and fastest-moving markets, our services help to simplify transactions and cut through the regulatory clutter to deliver real benefits to our clients.

Despite growing interest in the Asia-Pacific region from investors outside of the region, there is still some confusion about how the Hong Kong Exchanges operates.

Here we’ll take a brief look at the Hong Kong Exchanges and Clearing Ltd (HKEX) and how it works.
 

What is HKEX?

Hong Kong Exchanges is one of the largest publicly traded holding companies, and it’s made up of some of the most significant market institutions in the world. It operates the Stock Exchange of Hong Kong, the Hong Kong Futures Exchange, the London Metal Exchange and four Hong Kong-based clearinghouses.

It’s one the largest and well-capitalised exchanges in the world with a market capitalisation of $43.3 trillion as of October 2020.
 

What services does it offer?

HKEX offers a range of prime services to companies, institutions and investors. These include listing, global clearing, trading, safe custody, reference prices, market data and connectivity. It also functions as a regulatory body, where it oversees the trading activities of companies listed in Hong Kong and anyone who participates in trading activities within its venue.
 

Joining HKEX

If an interested company would like to join the HKEX then it will need to meet three criteria. These are a profit test, a market cap and revenue test, or a market cap, revenue and cash flow test. The profit test demands that a company has a three-year aggregate profit of HK$500 million or more. 

To meet the market cap and revenue test they need to have a market cap of HK$4 billion or more. The market cap, revenue, and cash flow criteria stipulate that its most recent revenue figures must be HK$500 million or more, HK$2 billion or higher market cap, and a positive three-year aggregate cash flow of at least $100 million.
 

The history of HKEX and what it does

HKEX was created in the year 2000 in response to a greater emphasis being placed on comprehensive reform and oversight related to the stock and futures market in Hong Kong. It was formed when the Hong Kong Futures Exchange, Hong Kong Stock Exchange, and the Hong Kong Securities Clearing Company were merged. 

This merger was designed to help improve China’s competitiveness in the global market, as well as to establish Hong Kong as the primary financial centre for the Asia-Pacific region. HKEX focuses on three main markets; Stock Exchange of Hong Kong, Hong Kong Futures Exchange, and the London Metals Exchange. 

This positioning allows it to take advantage of two of the world’s most important financial hubs, London and Hong Kong.
 

GIS & HKEX

GIS HK  is an SFC regulated firm, located in the Central Business District of Hong Kong. We offer post-trade, safe custody, global clearing and prime services across multiple currencies and in equities, fixed income, government securities and options. 

From our office in central Hong Kong, we’re ideally placed to serve both institutional, corporate and individual investors.

If you’re interested in our global clearing and safe custody services, email us today at info@gishkltd.com or give us a ring at +852 3018 3009.