People’s Republic of China–Hong Kong Special Administrative Region: Financial Sector Assessment Program-Technical Note-Regulation and Supervision of Secondary Markets
IMF Staff Country Reports, June 15, 2021
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- People’s Republic of China–Hong Kong Special Administrative Region: Financial Sector Assessment Program-Technical Note-Regulation and Supervision of Secondary Markets
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Bibliographic details
- Published: June 15, 2021
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513573267.002
Summary findings
- Hong Kong SAR has become an equity trading hub catering to domestic and foreign investors, including increasingly to investors from Mainland China.
- Most trading is conducted on markets operated by recognized exchange companies.
- Limited domestic trading occurs via automated trading services (ATS) providers in the form of alternative liquidity pools.
- The introduction of Stock Connect in 2014 enabled:
- investors from Hong Kong (including domestic and foreign) to directly invest in the Shanghai and later Shenzhen markets; and
- investors from the Mainland to directly access the Hong Kong market.
- Trading via Stock Connect has seen a steady rise over the last few years, increasing linkages between Hong Kong SAR and the Mainland.
- Mainland companies currently account for over 60 per cent of market capitalization of the equities traded on the Stock Exchange of Hong Kong (SEHK).
Market structure and participants
- Primary trading venues: markets operated by recognized exchange companies.
- Alternative trading: automated trading services (ATS) providers operating alternative liquidity pools.
- Cross-border connectivity: Stock Connect (launched 2014) linking Hong Kong, Shanghai, and Shenzhen markets.
Key statistics and publication metadata
- Publication date: June 15, 2021
- Pages: 37
- Volume: 2021
- Issue: 115
- Series: Country Report No. 2021/115
- DOI: https://doi.org/10.5089/9781513573267.002
- Stock No: 1HKGEA2021003
- ISBN: 9781513573267
- ISSN: 1934-7685
Subject tags and keywords (as listed)
- Subjects: Financial institutions; Financial markets; Financial Sector Assessment Program; Financial sector policy and analysis; International organization; International trade; Monetary policy; Securities; Stock markets; Stocks; Trade systems
- Keywords: ATS provider; China securities regulatory commission; Financial Sector Assessment Program; Global; Hong Kong exchange; market risk monitoring; People's Republic of China-Hong Kong Special Administrative Region; Securities; Stock markets; Stocks; Trade systems
International Monetary Fund. Monetary and Capital Markets Department "People’s Republic of China–Hong Kong Special Administrative Region: Financial Sector Assessment Program-Technical Note-Regulation and Supervision of Secondary Markets", IMF Staff Country Reports 2021, 115 (2021).
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