Hong Kong Stock Exchange: Guide for Investors

The Hong Kong Stock Exchange is one of the most sought-after exchanges in the world. This allows us to say that investing on the Hong Kong Stock Exchange is a highly attractive activity. Since it brings together most Asian companies, it represents a very interesting market for many foreign investors. However, there are many points you strictly need to know if you want to operate on this Hong Kong market. This guide will therefore help you clear up all your uncertainties about the Hong Kong Stock Exchange.

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What Is the Hong Kong Stock Exchange?

The Hong Kong Stock Exchange, abbreviated as SEHK or HKSE, is the stock exchange of Hong Kong. The main regulatory body of the HKSE is the Securities and Futures Commission (SFC). The regulator’s main role is to enforce all legislation and protect investors. It therefore has the following four operational units:

Enforcement Division

This division of the HKEX trading hub focuses on investor protection. It helps maintain market integrity through surveillance and law enforcement.

Corporate Finance Division

This department oversees all listing and cash market trading procedures. It also monitors listing activities and supervises the administration of securities legislation, including the HKEX listing rules.

Market Supervision Division

This division controls and supervises clearing houses and stock market activities.

Intermediaries and Investment Products Division

It defines the approval conditions relating to the financial integrity of listed intermediaries.

The Future of the Hong Kong Stock Exchange in the Financial Market

The Hong Kong Stock Exchange, commonly known as the HKEX trading hub, has bright prospects.

In fact, it currently ranks in the top five stock markets in the world thanks to the following strengths:

• HKEX has a market capitalisation of 6.81 trillion dollars (i.e. 52.96 trillion HKD in the local currency).
• HKEX has a monthly trading volume of 182,000 billion dollars
• HKEX has an average daily trading volume of 6,067 billion dollars.
• The number of companies listed on the Hong Kong Stock Exchange has now risen to more than 2,500, which is higher than its mainland China counterparts.
• HKEX is one of the fastest-growing exchanges in the world, since in 2008 it had only 1,200 listed companies.

Companies and Firms on the Hong Kong Stock Exchange

You are certainly wondering who the players on the HKEX stock markets are, and which company has the largest market capitalisation?

We know you do not want to waste time carrying out advanced research among all the companies. That is why we have compiled below the main HKEX-listed companies with their market capitalisation:

• AIA with a market capitalisation of 6.764 trillion HKD
• Tencent Holdings with a market capitalisation of 4,114 billion HKD
• Industrial and commercial Bank of China with a market capitalisation of 2.878 trillion HKD
• China construction Bank with a market capitalisation of 2,167 billion HKD
• Bank of China with a market capitalisation of 1,803 billion HKD

Why Invest in Hong Kong Stocks?

• Two very important aspects show that you should invest in Hong Kong stocks. Firstly, it is true that most of the most popular American companies are not listed on the HKEX trading hub. For example, Gamestop and Nio.
• On the other hand, be aware that on this exchange there are very interesting markets with exciting stocks. Many popular stocks such as Alibaba (stock ticker NASDAQ: BABA), Xiaomi and Occitane are available on the market.
• Trading on HKEX gives access to the Chinese mainland market, which is not always open to foreign investors. Thanks to the Hong Kong stock market, you can start trading these Chinese stocks, as well as the best-known stocks of the Hong Kong Stock Exchange. This is also a key point in the difference between Hong Kong and China stocks.
• Secondly, the Hong Kong stock market is also known for being highly volatile most of the time. This is why it attracts many investors, especially those who use CFDs and ETFs. Not only that, but there are also binary options users looking to invest in the benchmark Hang Seng index.
• In short, by trading the latter you get the opportunity to access the largest listed companies in Asia.

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Hong Kong Stock Exchange – Which Are the Most Profitable Stocks?

According to our research, here are the four most profitable stocks on the Hong Kong Stock Exchange:

• Tencent: Tencent Holdings Limited is a Chinese group specialising in Internet and mobile services as well as online advertising. It is part of the Hang Seng (HSI), the stock market index of Hong Kong, with a market capitalisation of more than 664.50 billion dollars.
• ANT Financial: this is a Chinese investment company and the financial subsidiary of the Alibaba group. It provides cloud computing services to financial companies and payment services to consumers.
• com: this is a Chinese online commerce company. It specialises in selling various items such as home appliances, digital and communication products, etc. These sales are made through its website and its mobile apps.
• China Mobil or CMCC: this is an investment holding company mainly active in telecommunications and related businesses. CMCC is listed on the HKEX exchange and has been admitted as a constituent stock of the Hang Seng Index.

Top 5 Best Stocks on the Hong Kong Stock Exchange

Here are the five best stocks on the Hong Kong Stock Exchange:

1. Alibaba (Buy Alibaba shares)
2. Xiaomi
3. com Inc
4. Kuaishou
5. Occitane

Alibaba Share Price in Real Time – BABA Chart

What Is the Hong Kong Stock Market Index?

Every stock market should have its own indices, and here we list those of HKEX.

Hang Seng Index: the main index of the HKEX stock market is the Hang Seng Index, made up of 50 companies listed on the exchange. These companies represent about 58% of the total market capitalisation of the Hong Kong Stock Exchange. It is a capitalisation-weighted index, which means its components are weighted according to the total market value of their shares outstanding.

Other Indices

There are a few other indices of interest relating to the HKEX trading hub:

• FTSE China 50 Index – These are the top 50 H, P and Red chip stocks of the Hong Kong Stock Exchange (HKEX).
• FTSE China A-H 50 Index – These are the 50 main A shares and H shares of the Hong Kong, Shanghai and Shenzhen exchanges.
• Hang Seng China Enterprises Index – These are the top 50 H shares of the Hong Kong Stock Exchange
• Hang Seng China-Affiliated Corporations Index – These are the top 25 leading stocks of the Hong Kong Stock Exchange.

HK Stock Market Hours: Opening and Closing

The Hong Kong Stock Exchange has its own trading hours, like any financial market in the world. As for its opening, it operates from Monday to Friday, from 10:00 to 12:30 in the morning and from 14:30 to 16:00 in the afternoon (local time).

In Paris time, its opening hours correspond to 03:00 to 05:30 and 07:30 to 09:00 respectively. As for its closing, it closes every weekend, i.e. on Saturdays and Sundays.

For more clarity, please find the details of these times in the following table:

Besides that, the market has a few occasional closures due to Asian public holidays during the current year. Think for example of Buddha’s Birthday, the Dragon Boat Festival, the Tuen Ng Festival and Special Administrative Region Establishment Day.

More precisely, the dates on which these public holidays fall vary each year since they are based on the lunar calendar.

Conclusion – Is Now the Ideal Time to Invest in the Hong Kong Stock Exchange?

• Following its recent price fall, the investment opportunity on HKEX should not be missed right now. The Hang Seng index of Hong Kong stocks is back at its levels from April 2020. This means that today is a good time to invest in the Hong Kong Stock Exchange.
• HKEX is a booming exchange, and even most large investors have been tempted to try the experience.
• Besides, the Chinese market is showing a strength that makes investors dream, despite the pandemic. In this case, the latest IMF economic forecasts point to a very interesting recovery in Chinese growth. More precisely, China is expected to record positive GDP growth for the year 2025. It should also return to its pre-Covid growth level this year 2026.
• In contrast, other major economies such as Europe and the United States continue to suffer the negative impact linked to the Covid-19 recovery. The main emerging countries such as India and Brazil are also heavily affected by the health crisis. The IMF therefore points to positive inflows into the Chinese markets in the long term, in particular the Hong Kong Stock Exchange.
• In short, you should nevertheless understand the risks your capital may face if you want to get started with this investment. Keep in mind that investing can both earn you more and lose your capital at the same time. The final answer to these questions is therefore up to you, depending on your means and your appetite for risk.

Read also: The Complete Guide to Investing in the Hang Seng

Diversifiez votre patrimoineInvestissez dans l’artDes tableaux originaux, pièces uniques signées par l’artiste. Un actif tangible, loin des écrans et des cotations.Voir les tableaux →

Other Stocks Listed on the Hong Kong Stock Exchange

• Tencent (Buy Tencent shares)
• Evergrande (Buy Evergrande shares)

This article is for educational purposes only and does not constitute investment advice. The investments mentioned carry a risk of capital loss.