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Hong Kong Exchanges and Clearing

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50-446: Hong Kong Exchanges and Clearing Limited ( HKEX ; Chinese : 香港交易及結算所有限公司 ) operates a range of equity, commodity, fixed income and currency markets through its wholly owned subsidiaries The Stock Exchange of Hong Kong Limited (SEHK), Hong Kong Futures Exchange Limited (HKFE) and London Metal Exchange (LME). As of August 2024, HKEX has a market capitalization of approximately US$ 4 trillion and 2,621 listed companies, making it

100-405: A broad range of products, including equity index, stock and interest rate. HKEX and its subsidiary companies, HKFE Clearing Corporation Limited and SEHK Options Clearing House Limited, operate rigorous risk management system which enables participants and their clients to meet their investment and hedging needs in a liquid and well-regulated market place. OTC Clearing Hong Kong Limited (OTC Clear)

150-509: A certain extent in South Korea , remain virtually identical to traditional characters, with variations between the two forms largely stylistic. There has historically been a debate on traditional and simplified Chinese characters . Because the simplifications are fairly systematic, it is possible to convert computer-encoded characters between the two sets, with the main issue being ambiguities in simplified representations resulting from

200-543: A consultation paper proposing changes to the Listing Rules "to address 18 substantive policy issues pertaining to corporate governance and initial listing criteria". On 28 November 2008, new rules were announced which included, inter alia , limitation of directors' trading in their companies' shares between the end of each semester until after publication of its results. The Listing Rule amendments were due to become effective on 1 January 2009. The previous blackout period

250-489: A positive role in the stock exchange's development as a shareholder. Analysts expect the government will continue to increase its stake, as HKEX is being prepared "for future integration and alliance with mainland exchanges". Another analyst was concerned about the independence of "independent chairman" Ronald Arculli, who also sits on the Executive Council . Between 11 January 2008 and 7 April 2008, HKEX launched

300-597: A proposal to the London Stock Exchange to merge the two companies in a cash and share deal worth £29.6 billion, or £31.6 billion ($ 39 billion) including debt. If the deal had gone through, the combined exchange would have been the world's third largest after the New York Stock Exchange and NASDAQ in terms of the total value of the companies on the exchanges. Computers were integrated on 2 April 1986, which has helped modernise

350-613: A standard set of Chinese character forms used to write Chinese languages . In Taiwan , the set of traditional characters is regulated by the Ministry of Education and standardized in the Standard Form of National Characters . These forms were predominant in written Chinese until the middle of the 20th century, when various countries that use Chinese characters began standardizing simplified sets of characters, often with characters that existed before as well-known variants of

400-869: Is 産 (also the accepted form in Japan and Korea), while in Hong Kong, Macau and Taiwan the accepted form is 產 (also the accepted form in Vietnamese chữ Nôm ). The PRC tends to print material intended for people in Hong Kong, Macau and Taiwan, and overseas Chinese in traditional characters. For example, versions of the People's Daily are printed in traditional characters, and both People's Daily and Xinhua have traditional character versions of their website available, using Big5 encoding. Mainland companies selling products in Hong Kong, Macau and Taiwan use traditional characters in order to communicate with consumers;

450-483: Is further interfering in the market to "cozy up to China's tightly controlled domestic exchanges". Financial commentator Jake van der Kamp noted the Financial Secretary 's conundrum: The government is faced with a conflict of interest , as its desire for an efficient marketplace is contrary to its desire as a shareholder, who would prefer to maximise returns. The government said that it wanted to play

500-697: Is the single largest shareholder in HKEX, and has the right to appoint six of the thirteen directors to the board. Reports of securities trading in Hong Kong date back to the mid-19th century. However, the first formal market, the Association of Stockbrokers in Hong Kong, was not established until 1891. The Association was renamed the Hong Kong Stock Exchange in 1914. A second exchange, the Hong Kong Stockbrokers' Association

550-455: Is within one month of publication, and was considered by HKEx to "fail to ensure that insiders do not abuse the market while in possession of unpublished price-sensitive information". In mid-December, legislators representing the functional constituencies , led by Abraham Razack , Chim Pui Chung and David Li , demanded that regulators postponed the execution of a prolonged blackout proposal. Razack said HKEx did not consult widely enough and

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600-493: The Chinese Commercial News , World News , and United Daily News all use traditional characters, as do some Hong Kong–based magazines such as Yazhou Zhoukan . The Philippine Chinese Daily uses simplified characters. DVDs are usually subtitled using traditional characters, influenced by media from Taiwan as well as by the two countries sharing the same DVD region , 3. With most having immigrated to

650-994: The 8th largest stock exchange globally. HKEX was the 10th largest stock exchange in terms of IPO proceeds in the first quarter of 2024. The Group also operates four clearing houses in Hong Kong: Hong Kong Securities Clearing Company Limited (HKSCC), HKFE Clearing Corporation Limited (HKCC), the SEHK Options Clearing House Limited (SEOCH) and OTC Clearing Hong Kong Limited (OTC Clear). HKSCC, HKCC and SEOCH provide integrated clearing , settlement , depository and nominee activities to their participants, while OTC Clear provides OTC interest rate derivatives and non-deliverable forwards clearing and settlement services to its members. HKEX provides market data through its data dissemination entity, HKEX Information Services Limited The Hong Kong Government

700-557: The Kensiu language . London Metal Exchange The London Metal Exchange ( LME ) is a futures and forwards exchange in London , United Kingdom with the world's largest market in standardised forward contracts , futures contracts and options on base metals . The exchange also offers contracts on ferrous metals and precious metals . The company also allows for cash trading. It offers hedging , worldwide reference pricing, and

750-676: The London Metal Exchange (LME), the world's premier metal exchange since its founding in 1877, for GBP1.388 billion. The acquisition was completed in December 2012. HKEX is also the majority owner of the Qianhai Mercantile Exchange, a commodities trading platform in Mainland China which has yet to officially begin operations. The Qianhai Authority has given the green light to HKEX to set up

800-640: The Shanghainese -language character U+20C8E 𠲎 CJK UNIFIED IDEOGRAPH-20C8E —a composition of 伐 with the ⼝   'MOUTH' radical—used instead of the Standard Chinese 嗎 ; 吗 . Typefaces often use the initialism TC to signify the use of traditional Chinese characters, as well as SC for simplified Chinese characters . In addition, the Noto, Italy family of typefaces, for example, also provides separate fonts for

850-843: The Wall Street Journal reported that the CEO of the exchange at the time, Charles Li , while he was chairman of JP Morgan China from 2003 to 2009, recommended hiring the children and associates of Chinese officials, clients and potential future clients. At the time, JP Morgan was investigated by the US Securities and Exchange Commission and the US Department of Justice into possible violation of anti-bribery laws by improperly hiring relatives of Chinese officials, known as " princelings ", to win business. Traditional Chinese characters Traditional Chinese characters are

900-593: The Government spent HK$ 2.44 billion to buy 15.72 million shares in the company. The stake would be held by the Exchange Fund as a "strategic asset". The move has drawn widespread criticism in Hong Kong and abroad: governance advocate and board member David Webb said that the government was the second-largest single investor in the Hong Kong market after Beijing, with a portfolio of local equities estimated to be worth about HK$ 150 billion. He said

950-707: The LBMA. The LME launched an electronic platform called LME Select launched in February 2001. This was developed by a Swedish software house Cinnober. The platform is a FIX-based trading platform, and now handles a majority of the total LME business. LME Clear is the clearing house for the London Metal Exchange. Launched in 2014 it was designed and built in consultation with the market to provide cost-efficient, EMIR compliant clearing and settlement services, using cutting-edge technology. LME Clear has announced

1000-555: The People's Republic of China, traditional Chinese characters are standardised according to the Table of Comparison between Standard, Traditional and Variant Chinese Characters . Dictionaries published in mainland China generally show both simplified and their traditional counterparts. There are differences between the accepted traditional forms in mainland China and elsewhere, for example the accepted traditional form of 产 in mainland China

1050-587: The United States during the second half of the 19th century, Chinese Americans have long used traditional characters. When not providing both, US public notices and signs in Chinese are generally written in traditional characters, more often than in simplified characters. In the past, traditional Chinese was most often encoded on computers using the Big5 standard, which favored traditional characters. However,

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1100-678: The afternoon session is from 1:00 pm to 4:00 pm. HKEX implemented a Closing Auction Session (CAS) in two phases on 25 July 2016 and 24 July 2017. The securities eligible for the CAS include all constituents of the Hang Seng Composite LargeCap, MidCap and SmallCap indices, H shares which have corresponding A shares listed on a mainland exchange and all exchange traded funds. It also includes some regulated short-selling orders. A Volatility Control Mechanism (VCM), which functions similarly to circuit breakers on US exchanges,

1150-580: The appointment of David Warren as Chairman effective July 20, 2023. David will succeed Marco Strimer, who will step down as chairman at the end of his term of office. In March 2022, LME was sued by Elliott Management , an American hedge fund. The hedge fund sued for $ 456 million, claiming that LME acted "unreasonably and irrationally" when it canceled nickel trades made on March 8, 2022. Jane Street Global Trading also sued LME for $ 15.3 million over its cancelled nickel trades in March. Both lawsuits were filed in

1200-853: The commodities platform in the special economic zone, but official crackdowns on spot trading platforms in Mainland China have caused a delay. After the New York Stock Exchange announced in November 2006 that it would open an office in Beijing to work with the Shanghai Stock Exchange , Hong Kong Exchanges and Clearing chairman Ronald Arculli dampened speculation, saying it has no immediate plans to acquire or merge with other exchanges, but would focus on "strengthening our competitiveness and reviewing our listing fees". In September 2019 Hong Kong Exchanges and Clearing made

1250-742: The commodity exchange were cotton futures, sugar futures, soybean futures and gold futures. The Hong Kong Commodity Exchange was renamed the Hong Kong Futures Exchange (HKFE) on 7 May 1985. HKFE launched on 6 May 1986 its flagship product, the HSI Futures, which is still its most popular futures product in HKEX's derivatives markets today. HKFE provides efficient and diversified markets for trading futures and options contracts by its more than 160 participant organisations, including many that are affiliated to international financial institutions. The derivatives market under HKEX trades

1300-481: The four exchanges led to the incorporation of SEHK, the Stock Exchange of Hong Kong Limited in 1980. The four exchanges ceased business on 27 March 1986 and the new exchange commenced trading through a computer-assisted system on 2 April 1986. Prior to the completion of the merger with HKFE in March 2000, the unified stock exchange had 570 participant organisations. Hong Kong Securities Clearing Company Limited

1350-493: The inverse is equally true as well. In digital media, many cultural phenomena imported from Hong Kong and Taiwan into mainland China, such as music videos, karaoke videos, subtitled movies, and subtitled dramas, use traditional Chinese characters. In Hong Kong and Macau , traditional characters were retained during the colonial period, while the mainland adopted simplified characters. Simplified characters are contemporaneously used to accommodate immigrants and tourists, often from

1400-725: The mainland. The increasing use of simplified characters has led to concern among residents regarding protecting what they see as their local heritage. Taiwan has never adopted simplified characters. The use of simplified characters in government documents and educational settings is discouraged by the government of Taiwan. Nevertheless, with sufficient context simplified characters are likely to be successfully read by those used to traditional characters, especially given some previous exposure. Many simplified characters were previously variants that had long been in some use, with systematic stroke simplifications used in folk handwriting since antiquity. Traditional characters were recognized as

1450-682: The majority of Chinese text in mainland China are simplified characters , there is no legislation prohibiting the use of traditional Chinese characters, and often traditional Chinese characters remain in use for stylistic and commercial purposes, such as in shopfront displays and advertising. Traditional Chinese characters remain ubiquitous on buildings that predate the promulgation of the current simplification scheme, such as former government buildings, religious buildings, educational institutions, and historical monuments. Traditional Chinese characters continue to be used for ceremonial, cultural, scholarly/academic research, and artistic/decorative purposes. In

1500-983: The merging of previously distinct character forms. Many Chinese online newspapers allow users to switch between these character sets. Traditional characters are known by different names throughout the Chinese-speaking world. The government of Taiwan officially refers to traditional Chinese characters as 正體字 ; 正体字 ; zhèngtǐzì ; 'orthodox characters'. This term is also used outside Taiwan to distinguish standard characters, including both simplified, and traditional, from other variants and idiomatic characters . Users of traditional characters elsewhere, as well as those using simplified characters, call traditional characters 繁體字 ; 繁体字 ; fántǐzì ; 'complex characters', 老字 ; lǎozì ; 'old characters', or 全體字 ; 全体字 ; quántǐzì ; 'full characters' to distinguish them from simplified characters. Some argue that since traditional characters are often

1550-677: The official script in Singapore until 1969, when the government officially adopted Simplified characters. Traditional characters still are widely used in contexts such as in baby and corporation names, advertisements, decorations, official documents and in newspapers. The Chinese Filipino community continues to be one of the most conservative in Southeast Asia regarding simplification. Although major public universities teach in simplified characters, many well-established Chinese schools still use traditional characters. Publications such as

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1600-575: The option of physical delivery to settle contracts. It was purchased by Hong Kong Exchanges and Clearing in 2012. Trading times are 11:40 to 17:00 GMT . The LME is the last exchange in Europe where open-outcry trading takes place. The ring was temporarily closed in March 2020 due to the COVID-19 pandemic . In January 2021, LME proposed closing the ring, Europe's last open-outcry trading floor, and moving permanently to an electronic system. However,

1650-700: The original standard forms, they should not be called 'complex'. Conversely, there is a common objection to the description of traditional characters as 'standard', due to them not being used by a large population of Chinese speakers. Additionally, as the process of Chinese character creation often made many characters more elaborate over time, there is sometimes a hesitation to characterize them as 'traditional'. Some people refer to traditional characters as 'proper characters' ( 正字 ; zhèngzì or 正寫 ; zhèngxiě ) and to simplified characters as 簡筆字 ; 简笔字 ; jiǎnbǐzì ; 'simplified-stroke characters' or 減筆字 ; 减笔字 ; jiǎnbǐzì ; 'reduced-stroke characters', as

1700-833: The predominant forms. Simplified characters as codified by the People's Republic of China are predominantly used in mainland China , Malaysia, and Singapore. "Traditional" as such is a retronym applied to non-simplified character sets in the wake of widespread use of simplified characters. Traditional characters are commonly used in Taiwan , Hong Kong , and Macau , as well as in most overseas Chinese communities outside of Southeast Asia. As for non-Chinese languages written using Chinese characters, Japanese kanji include many simplified characters known as shinjitai standardized after World War II, sometimes distinct from their simplified Chinese counterparts . Korean hanja , still used to

1750-504: The process was a "black- box operation" that did not reflect industry opinion; David Webb said that the campaign was due to some well-connected tycoons and company directors' rearguard action to derail the rule change. On 30 December 2008, the Listing Committee said it would not withdraw the new rule because it would "have a long-term benefit on the market. However it postponed the rules' introduction by three months." In 2015,

1800-542: The purchase violated the government's stated principle of "big market, small government", adding that it increased uncertainty and sends a very negative signal to the market as a whole; the Civic Party criticised the Government for damaging public confidence in the capital market, and interfering with the stock exchange's independence; a Wall Street Journal editorial said that the Hong Kong Government

1850-572: The ring reopened in September of the same year after resistance from members. In addition to the 9 companies that have exclusive rights to trade in the ring, around 100 companies are involved in the LME in total. The LME used, however, to provide trade matching and clearing services to the London bullion market and distributes gold, silver, and gold IRS ( interest rate swaps ) forward rates on behalf of

1900-453: The second trading day following the transaction. The company also offers nominee service. In April 2002, HKEX launched a study to consider the delisting of " penny stocks " to improve market efficiency. Its 25 July 2002 proposal to cancel listings of companies trading below HK$ 0.50 for 30 straight days hit penny stocks hard. Seventeen companies' shares lost more than 30 per cent of their value, and about HK$ 6 billion in market capitalisation

1950-458: The system. In 1993 the exchange launched the " Automatic Order Matching and Execution System " (AMS) that was replaced by the third generation system (AMS/3) in October 2000. Systems as such were added to meet the increased popularity of online stock trading. HKEX's morning session runs from 09:00 am to 12:00 pm; the extended morning session is from 12:00 pm until 1:00 pm and

2000-636: The traditional character set used in Taiwan ( TC ) and the set used in Hong Kong ( HK ). Most Chinese-language webpages now use Unicode for their text. The World Wide Web Consortium (W3C) recommends the use of the language tag zh-Hant to specify webpage content written with traditional characters. In the Japanese writing system , kyujitai are traditional forms, which were simplified to create shinjitai for standardized Japanese use following World War II. Kyūjitai are mostly congruent with

2050-985: The traditional characters in Chinese, save for minor stylistic variation. Characters that are not included in the jōyō kanji list are generally recommended to be printed in their traditional forms, with a few exceptions. Additionally, there are kokuji , which are kanji wholly created in Japan, rather than originally being borrowed from China. In the Korean writing system , hanja —replaced almost entirely by hangul in South Korea and totally replaced in North Korea —are mostly identical with their traditional counterparts, save minor stylistic variations. As with Japanese, there are autochthonous hanja, known as gukja . Traditional Chinese characters are also used by non-Chinese ethnic groups. The Maniq people living in Thailand and Malaysia use Chinese characters to write

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2100-518: The ubiquitous Unicode standard gives equal weight to simplified and traditional Chinese characters, and has become by far the most popular encoding for Chinese-language text. There are various input method editors (IMEs) available for the input of Chinese characters . Many characters, often dialectical variants, are encoded in Unicode but cannot be inputted using certain IMEs, with one example being

2150-519: The voting ordinary shares of OTC Clear. OTC Clear started offering OTC derivatives clearing services in November 2013. OTC Clear created OCASS, the OTC Clearing and Settlement System, for OTC Derivatives clearing and became the central counterparty for all clearing members. OTC Clear is currently providing clearing and settlement services interest rate swaps and non-deliverable forward products. In June 2012, HKEX announced its cash offer to acquire

2200-587: The words for simplified and reduced are homophonous in Standard Chinese , both pronounced as jiǎn . The modern shapes of traditional Chinese characters first appeared with the emergence of the clerical script during the Han dynasty c.  200 BCE , with the sets of forms and norms more or less stable since the Southern and Northern dynasties period c.  the 5th century . Although

2250-505: Was implemented in two phases on 22 August 2016 and 16 January 2017. Major securities products include equity securities, depositary receipts, debt securities, unit trusts/mutual funds (i.e. ETFs and REITs) and structured products. Derivative products include index and stock futures and options, interest rate and fixed income products and gold futures. In September 2007, the government revealed that it had increased its stake in HKEX from 4.41 percent to 5.88 percent. According to market sources,

2300-559: Was incorporated as a subsidiary of HKEX in May 2012 for the purpose of acting as the clearing house for OTC derivatives in Hong Kong. Subsequently, HKEX, under the founding member programme, invited 12 financial institutions as founding members of OTC Clear, who in total hold 25 per cent of issued share capital in OTC Clear (in the form of non-voting ordinary shares) while HKEX holds the remaining 75 per cent. HKEX continues to hold 100 per cent of

2350-697: Was incorporated in 1921. The two exchanges merged to form the Hong Kong Stock Exchange in 1947 and re-establish the stock market after the Second World War. Rapid growth of the Hong Kong economy led to the establishment of three other exchanges – the Far East Exchange in 1969; the Kam Ngan Stock Exchange in 1971; and the Kowloon Stock Exchange in 1972. Pressure to strengthen market regulation and to unify

2400-522: Was incorporated in 1989. It created CCASS , the central clearing and settlement system, which started operating in 1992 and became the central counterparty for all CCASS participants. The clearing operation is based on the immobilisation of share certificates in a central depository. Share settlement is on a continuous net settlement basis by electronic book entry to participants' stock accounts in CCASS. Transactions between CCASS participants are settled on T+2,

2450-584: Was released which found HKEX Chief Executive Kwong Ki-chi guilty of administrative mistakes and said he "should be held responsible on behalf of the HKEX for any major policy shortcomings in the preparation and release of the consultation paper". Established in 1976, the Hong Kong Commodity Exchange (the predecessor of Hong Kong Futures Exchange Limited) is a derivatives leader in the Asia-Pacific region. The main products traded on

2500-461: Was wiped off 105 listed companies. Activist David Webb said that HKEX's desire to delist stemmed from these companies generating very little revenue for the exchange but taking up a disproportionate amount of staff resources. Webb decried the conflict of interest between its role as operator and regulator, and called on the regulatory role to be passed to the SFC . On 10 September 2002, a government report

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