Hong Kong Stock Market

Hong Kong Exchanges and Clearing Limited (HKEx) is the market operator of the securities trading and clearing systems. It consists of a Main Board and the Growth Enterprise Market (GEM) board for stock trading. In addition to stocks, HKEx’s cash market also provides the trading for derivative warrants, exchange-traded funds (ETFs), real estate investment trusts (REITs), equity-linked investments, callable bull/bear contracts (CBBCs) and debt securities. HKEx also operates a very active derivativesmarket, which includes the trading of index futures, stocks futures, index options and stock options. HKEx is regulated by the Securities and Futures Commission.

Q1. How do I place buy and sell orders?
  • You can phone your brokerage’s trading line or visit the brokerage.
  • Some firms also offer on-line trading services, which allow orders to be routed into an exchange’s trading system in real time. But if the brokerage’s on-line service is an email-based system, you will only be using the email to place orders that are manually fed into the trading system, so the usual processing delays and human error may apply.
  • Whichever method you use, it’s important you give accurate instructions. You must clearly give the stock name or stock code, the exact number of shares or the number of board lots you wish to trade, the type of order, and the price level you want.
  • The type of order determines when and how your order will be executed. If you want price protection, you can use a limit order: this means the transaction takes place at a price equal to or better than the price you specify. If you want your order to be executed immediately, you can place a market order: in this case, the transaction will be executed at the best price available at the time your order reaches the market. Remember that this is what Carl did, and his problem was that he could not control the order price.

Ask the person you are dealing with to repeat your instructions to make sure there’s no misunderstanding.

Q2. How long does it take for an order to be executed?
Q3. How are trades executed during different trading sessions?
Q4. What transaction costs will I pay?
Q5. What are the rules for brokerages' handling of clients' orders?
Q6. What is capital re-organization?
Q7. What should you do in a takeover?
Q8. What will be the implications for shareholders/investors if listed companies repurchase their own shares?