The difference between SEHK and HKEX

Mondo Finance Updated on 2024-01-30

The Stock Exchange and the Hong Kong Stock Exchange are the two major financial institutions in Hong Kong, which are responsible for managing and operating the ** market. Although they are all Hong Kong's top exchanges, there are some obvious differences in terms of historical background, organizational structure, market size, listing standards and business scope.

1. Historical background

1.Stock Exchange: Founded in 1891, the Stock Exchange is one of the world's first largest exchanges. It originated in the British colonial period as a pre-handover institution for Hong Kong.

Long history: With a history of more than 100 years, the Stock Exchange has witnessed the development and transformation of Hong Kong's financial market.

British Colonial Legacy: The establishment of the Stock Exchange is linked to the financial system during the British colonial period, reflecting Hong Kong's origins as an international financial centre.

2.Hong Kong Stock Exchange: The Hong Kong Stock Exchange was established in 2000 by the merger of the Stock Exchange, ** Exchange and Clearing House. It is the first exchange after the establishment of the Hong Kong Special Administrative Region.

Merger: The Hong Kong Stock Exchange was formed through the merger of three institutions after the establishment of the Hong Kong Special Administrative Region, marking a new stage of integration and development of Hong Kong's financial market.

Modern Financial System: The establishment of the Hong Kong Stock Exchange reflects Hong Kong's modern needs and development direction as an international financial center.

2. Organizational structure

1.Stock Exchange: The Stock Exchange is a not-for-profit corporate limited liability regime consisting of a group of members. Members are elected to the Board of Directors and are headed by the Chairman.

Membership system: The Stock Exchange adopts a membership system, and members enjoy specific trading privileges and benefits.

Non-profit organisations: As a not-for-profit organisation, the Exchange's business objectives are primarily concerned with fairness and transparency in market operations and regulation.

2.HKEX: The HKEX is a listed company whose shares are listed on the Hong Kong Stock Exchange. The Company has a Board of Directors and management, which is headed by the Chief Executive Officer.

Listed companies: The Hong Kong Stock Exchange itself is a listed company and is regulated and constrained by shareholders and investors.

Capital market operation: HKEX combines capital market operation with commercial operation to pursue economic benefits and market competitiveness.

Third, the market size

1.Stock Exchange: The Stock Exchange is one of the largest exchanges in the world, with many domestic and foreign companies listed.

Abundant listing resources: The Stock Exchange has attracted many listing applications from domestic and foreign companies, providing abundant listing resources and opportunities.

Diversified markets: The Stock Exchange's market covers listed companies of different industries and sizes, and has a high degree of market diversity.

2.Hong Kong Stock Exchange: The Hong Kong Stock Exchange is also one of the world's most important financial markets.

High profitability: The overall profitability of companies listed on the Hong Kong Stock Exchange is relatively high, which is favored by investors.

Stable market development: As an international financial center, the Hong Kong Stock Exchange has a relatively stable market development, which has attracted the attention of many investors.

4. Listing Standards

1.SEHK: SEHK has high requirements for listed companies, including market capitalisation, liquidity, financial status and corporate governance. At the same time, the Stock Exchange also offers different listing sectors, such as the Main Board, Growth Enterprise Market and Market Trading**.

High threshold: The Stock Exchange has a high threshold for listed companies, requiring companies to have a certain scale, good financial position and an effective corporate governance structure.

Diversified Listing Sectors: The Stock Exchange offers a variety of listing sectors to meet the development needs of different enterprises.

2.HKEX: The HKEX also has strict listing criteria, but it is more open to start-ups and emerging industries than the SEHK, offering more opportunities. In addition, the Hong Kong Stock Exchange also has a number of listed sectors, such as the Main Board, ChiNext Board, Bond Market and Commodity Market.

Higher openness: The HKEX has relatively relaxed listing requirements for start-ups and emerging industries, encouraging innovation, entrepreneurship and industrial development.

Diversified capital markets: The Hong Kong Stock Exchange offers a variety of listing sectors to meet the needs of different types of businesses and investors.

5. Business scope

1.SEHK: The main business of SEHK is ** trading, but also provides trading services for derivatives, bonds and other financial products such as **.

Diversified financial products: SEHK provides a variety of financial products trading services to meet the different needs of investors.

Focus on the market: While the Exchange also trades in other financial products, its primary focus remains on the market.

2.HKEX: In addition to ** trading, HKEX also provides derivatives trading, bond markets, commodity markets, and clearing and clearing services.

Comprehensive financial services: HKEX offers a comprehensive range of financial products and services, including multiple markets, including derivatives, bonds and commodities.

Integrated operation: HKEX has realized the integrated operation of the financial market through clearing and clearing services.

6. International influence

1.Stock Exchange: As one of the largest markets in Asia, the Stock Exchange has a large international influence and has attracted many domestic and foreign investors and listed companies.

Asian Financial Centre: As one of the most important financial centres in Asia, the Stock Exchange has an important influence on the financial market and economic development in the region.

International capital flows: The Stock Exchange has attracted the attention of a large number of domestic and foreign investors, facilitating international capital flows.

2.HKEX: HKEX also plays an important role in the international financial market, especially as a bridge and link between Chinese mainland and global investors.

Docking window for China's capital market: The Hong Kong Stock Exchange provides a convenient channel for Chinese mainland enterprises to list in Hong Kong, promoting the internationalization of China's capital market.

Global Investors' Choice: The Hong Kong Stock Exchange has attracted the attention of many global investors and has become an important channel for them to participate in the Chinese market.

Summary:

As the two major financial institutions in Hong Kong, the Stock Exchange and the Hong Kong Stock Exchange have obvious differences in terms of historical background, organizational structure, market size, listing standards and business scope. The Stock Exchange has a long history, emphasizing non-profit organizations and membership systems, and has high requirements for listed companiesThe Hong Kong Stock Exchange, on the other hand, is a listed company that is more open to start-ups and emerging industries, and provides diversified financial services.

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