With the rapid development of the Chinese mainland economy, Hong Kong has become the fastest growing international financial center in the Asia Pacific region. In recent years, companies have come to Hong Kong from different regions such as Europe, America and China for listing. In particular, the mainland state-owned and private enterprises are the pillars of Hong Kong stock market. Therefore, China's domestic economic development is closely related to the Hong Kong market, and its impact on the Hong Kong securities market is becoming more and more important.
In Hong Kong, the Hang Seng Index consists of 50 constituent stocks, accounting for about 60% of the market value of the Hong Kong main board. The main sectors of the index include finance, telecommunications, real estate and public utilities sectors, accounting for more than 46% of the total market turnover. In addition, there are other investment products such as warrants, CBBCs and so on.
Trading Hours
The Hong Kong stock market opens from Monday to Friday (except public holidays)
for the following trading hours:
Auction period
Pre- mkt opening hours 9:00 am to 9:30 am
Continuous trading session
Morning Market Session 9:30 am to 12:00 noon
Afternoon Market Session 1:00 pm to 4:00 pm
** On Christmas Eve, New Year's Eve or Lunar New Year's Eve, there will be no renewal of morning and afternoon trading. The Hong Kong Stock Exchange will prepare a closed day schedule on every year, which can be found on the "Stock Transaction Information" section of the HKEx website.
In addition, the settlement of Hong Kong stocks after the trading is carried out on the second working day after the trading day (T+2). The Hong Kong stock market allows stocks to be bought and sold on the same day. There is no price limitation in Hong Kong stock market.
Other investment products
Warrant
A warrant is a "right" and not a liability. On a predetermined maturity date, the relevant assets (such as stocks, currencies, indices, commodity futures, etc.) are subscribed or pledged at a predetermined strike price.
There are two types of warrants for trading in the securities market, namely "Company Warrants" and "Covered Warrants".
Callable Bull / Bear Contracts (CBBC)
The CBBC is a derivative product similar to a warrant, and also has the terms such as strike price, maturity date, and exchange rate. The CBBC is similar to futures trading. The financial cost of the CBBC is comparable to the cost paid by the investor to borrow money from the issuer to buy/sell the relevant assets and obtain leverage.
CBBCs have a mandatory recovery mechanism. When the relevant asset price hits the CBBC's recovery price, the CBBCs will be recovered. Investors do not need to top up, and their loss is limited at the initial investment amount of the CBBC.
