Hong Kong Exchange: what you should pay attention to

Гонконгская биржа: на что стоит обратить внимание

Hong Kong Exchange: what you should pay attention to

In the light of recent events, the management of SPb-Exchange has intensified its work to ensure access of its clients to the securities of issuers from the Hong Kong Exchange. We decided to make for our readers a small reference about the Hong Kong Stock Exchange.

When creating the material, sources were used, inaccessible to users from the Russian Federation. We hope, Do you know, what to do.

Important: status of Hong Kong

Гонконг был до 1997 года колонией Великобритании, и его отдали коммунистическому Китаю под честное слово не нарушать автономии этого города в составе Китая до 2047 of the year.

Therefore, in fact, Hong Kong is now a state within a state with a lot of differences from mainland China in legal and political terms..

By the way,, even before the coronavirus crisis, mainland Chinese citizens could not travel to Hong Kong without a visa, and in the Hong Kong Police Manual, dispersing protesters back in 2019, there were many British police chiefs. Many U.S. companies and agencies often report Hong Kong as a separate country..

Hong Kong is somewhat more like the UK, than on the PRC, including in the field of legislation. Therefore, the island is an important financial center.: differences in rules and regulations make the placement of shares on the Hong Kong Stock Exchange easier, than on the exchanges of mainland China.

Also important, that Hong Kong, through the efforts of British PR specialists, has gained fame as an investor-friendly place for many decades of British rule., so by inertia, even Chinese companies are trying to hold AN IPO in Hong Kong as much as possible.. In a sense, it's a blessing.: shanghai and shenzhen sites are already surpassing the Hong Kong stock exchange in terms of capitalization.


It is one of the three largest exchanges in China. At the time of writing, the market capitalization of all companies, traded on this site, is 38,562 трлн гонконгских долларов (HKD) — это примерно 4 трлн обычных долларов по курсу на 16.06.2022. For comparison: капитализация российского фондового рынка в долларах — 730,5 billion, а капитализация американского фондового рынка — чуть меньше 50 trillion.

Капитализация бирж мира по состоянию на март 2022 of the year, trillion dollars

NYSE, USA27,21
Shanghai Stock Exchange, China7,37
Euronext, Europe6,66
Japan Exchange Group, Japan6
Shenzhen Stock Exchange, China5,33
Hong Kong Exchanges, Hong Kong4,97
LSE Group, United Kingdom3,57
National Stock Exchange of India, India3,45
TMX Group, Canada3,41


How many companies

In May 2022 на бирже было 2,218 тысячи компаний. That's half as much., than in the USA, but much more, than in Russia.

What's out there?. Part of issuers, traded on the Hong Kong Stock Exchange, we are already familiar: their ADR receipts are traded on American exchanges and are available on the SPb-Exchange. This, for example, NetEase.

10 the largest issuers of the Hong Kong Stock Exchange, million Hong Kong dollars

TickerNameMarket capitalizationShare of the capitalization of the entire exchange
1700Tencent Holdings3 483 383,879,22%
29988Alibaba Group Holding, SW2 087 403,515,52%
3939China Construction Bank Corporation, H Shares1 404 037,153,71%
43690Meituan, W1 156 361,523,06%
5941China Mobile1 082 027,182,86%
65HSBC Holdings1 064 333,812,82%
71299AIA Group974 437,012,58%
89618JD.com, SW714 003,801,89%
99999NetEase, S588 060,991,56%
10883CNOOC554 521,401,47%

But, in my opinion, the most interesting issuers of this exchange are not on the "SPb-exchange":

  1. Tencent is a Chinese technology and media holding.
  2. AIA Group is a financial company.
  3. Xiaomi is a manufacturer of consumer electronics.
  4. China Mobile, a telecommunications giant.
  5. Meituan – a platform for online commerce.

The Hong Kong Exchange itself is also traded on the stock exchange - on its own platform.

Even Hong Kong has its own ETF, investing as in the indices of this exchange, as well as in Chinese and Asian indices of Western compilers, there are shares of some American companies such as Microsoft.


There are four main indices of the Hong Kong Stock Exchange, which investors can focus on. The Chinese themselves call Hong Kong "Hong Kong". Therefore, the official indices are called in the Chinese manner Hang Seng.

Hang Seng Index (HSI) - Main Index of the Hong Kong Stock Exchange, including 66 the largest and most liquid issuers.

Industry components of HSI

Percentage in the indexNumber of issuers
Consumer goods8,94%10
Property and construction8,05%12
Housing and communal services3,86%5
Materials (edit)0,00%

Hang Seng Composite Index (HSCI) - Another representative index of the Hong Kong Stock Exchange, covering 95% market capitalization of the largest companies of the exchange. In total there 516 companies. Unlike HSI, not only large-cap companies are represented here, but also with small and medium.

Industry components of HSCI

Percentage in the indexNumber of issuers
Consumer goods10,46%94
Property and construction9,21%99
Housing and communal services5,03%75
Materials (edit)1,42%23

Hang Seng China Enterprises Index (HSCEI) - Hong Kong Exchange Companies Index originally from mainland China. Total in it 50 companies.

Industry components of HSCEI

Percentage in the indexNumber of issuers
Consumer goods9,39%6
Property and construction5,26%6
Housing and communal services4,24%4
Materials (edit)0,00%

Hang Seng TECH Index (HSTECH) is an index from 30 of the largest technology companies, traded on the Hong Kong Stock Exchange. By the way,, there aren't just pure IT issuers, but also companies from other sectors, indirectly related to the technology sector: for example, manufacturer of electric cars Li Auto.

HSTECH Industry Components

Percentage in the indexNumber of issuers
Consumer goods6,82%2
Property and construction5,55%3
Housing and communal services1,26%1
Materials (edit)0,00%

There are also smaller sectoral indices, consisting of industry issuers HSCI and HSI. Hong Kong ETFs are largely focused on these indices.


Now the plot is developing with the construction of a vertical of power in Hong Kong, similar to, what already exists in mainland China, And, Consequently, squeezing political and legal freedoms.

Purely economic risks for companies, listed on the Hong Kong Stock Exchange, so far seem very insignificant. Coronacrisis disruptions in business activity are a much more serious problem. Hong Kong business is not yet suffering from political reforms. Maybe, in the future, the exodus of companies from the island will begin due to political changes, but it's too early to tell..

A much more significant problem may be the non-recognition of these changes by the international community and the imposition of Hong Kong-related sanctions on China.. May well get to that point., that U.S. and European regulators will terrorize companies with residence permits in Hong Kong on the grounds that, that "Beijing violates hong kong's special status agreements, and therefore placing your shares there and doing business is unacceptable.".


Hong Kong is perceived by many in the PRC and beyond as China's window to the world and a key financial center..

In light of this, it is very possible, that the exodus of Chinese companies from U.S. exchanges could lead to the filling of the Hong Kong Exchange with new issuers and investors..

Also in favor of the Hong Kong Stock Exchange is the creation of the "GreatEr Bay" zone., which will contribute to the integration of a number of economically developed areas of the PRC, включая Гонконг с общим населением свыше 86 million people, – directly or indirectly, this can also contribute to the inflow of money and companies to the Hong Kong stock exchange. Probably, upon reaching maturity, the most promising companies in this mega-agglomeration will choose the Hong Kong exchange.

It is also worth considering the disproportionately large role of Hong Kong in domestic chinese politics.: the placement of shares of a Chinese state-owned company in Hong Kong greatly increases the chances of the heads of these enterprises for political advancement.. It seems to me, even in the case of China's increasing isolation, this factor will play to the benefit of the Hong Kong Stock Exchange..


Russian stock market is a dreary swamp, in which nothing happens. That's why, of course, opening russian investors' access to new shares is a plus in itself.

Will hope, that the opening of access to the Hong Kong Stock Exchange will take place this year and that access will be as complete as possible - with all shares and ETFs. And then we can start doing reviews of companies like Tencent..