• The Hong Kong Stock Exchange lists over 2,500 stocks from over 30 countries - most notably from Mainland China
• The exchange is owned and operated by Hong Kong Exchanges and Clearing (HKEX), which is listed on the exchange under the SEHK:388 ticker symbol
• The HKEX also owns the Hong Kong Futures Exchange and the London Metals Exchange
• The SEHK is home to some of the largest companies in the world, such as the Alibaba Group, Tencent Holdings, and HSBC Holdings
• The HKEX has a unique trading system called the "closing auction”, which occurs at the end of each trading day. During the closing auction, orders are matched at a single, market-determined price, which is used to calculate the daily closing price of each stock
• The SEHK launched its own blockchain-based platform in 2018, called HKEX Synapse, for managing securities settlement and other financial transactions
• The Hong Kong Stock Exchange works Monday through Friday from 9:30 am to 12:00 and from 12:00 to 4:00 pm
• Listing on the Hong Kong Stock Exchange is shown in numbers, as opposed to traditional ticker symbols

The Hong Kong Stock Exchange has a multi-layered approach when it comes to the listing requirements it upholds for applicant companies. Some of these requirements include:

Profit:

• Market capitalization of at least HKD 500 million (approx $64.18 million)
• Profit attributable to shareholders of at least HKD 80 million (approx $10.27 million) in the last three financial years, profits of at least HKD 35 million (approx $4.49 million) recorded in the most recent year and profits of at least HKD 45 million (approx $5.78 million) recorded in the prior two years 

Market capitalization/revenue:

• Market capitalization of at least HKD 4 billion (approx $513.5 million)
• Revenue of at least HKD 500 million (approx $64.2 million) for the latest audited financial year

Market capitalization/revenue/cash flow:

• Market capitalization of at least HKD 2 billion (approx $257.7 million)
• Revenue of at least HKD 500 million (approx $64.2 million)
• Positive cash flow from operations of at least HKD 100 million (approx $12.85 million) for the three prior years 

The company is also expected to have sufficient working capital for the next 12 months after the listing 

The Hong Kong Stock Exchange is a for-profit exchange that generates revenue through a few different sources, such as:

• Listing fees: Companies pay fees to the HKEX to list their shares on the exchange
• Trading fees: The HKEX charges fees for trading securities on its platform
• Clearing and settlement fees: The HKEX operates a clearing house to settle trades, and charges fees for this service
• Market data fees: The HKEX charges fees for providing market data to investors, including real-time and historical data
• Connectivity fees: The HKEX charges fees for providing connectivity to its trading platform through direct market access (DMA) and other channels
• Derivatives trading fees: The HKEX offers trading in a range of derivatives products, including futures and options, and charges fees for trading these products
• Market promotion fees: The HKEX charges fees for promoting its markets and products to investors
• Other fees and services: The HKEX generates revenue through various other fees and services, including IPO sponsor fees, research and analytics services, and training and education programs

SEHK Listing And Other Fees

The Hong Kong Stock Exchange charges a one-time and recurring listing fees for constituent companies, which can vary greatly based on the number of shares, industry, and the type of security being listed. The general listing fees for equities can be broken down as follows:

• Initial listing fees for new applicants that do not have prior listings on the exchange range from HKD 150,000 to HKD 650,000, based on the number of shares being listed
• New applicants are also obligated to pay the listing fee at the same time of the listing application
• An annual listing fee for equity securities, other than warrants, range from HKD 145,000 to HKD 1,188,000
• For issuers that have a nominal share value of less than $0.25, the annual listing fee will be calculated using a nominal $0.25 value
• If a constituent is delisted, they will be refunded the listing fee attributable up to the month when the delisting occurred
• For mutual funds and other open-ended investments, the initial listing fee is HKD 20,000 and the annual fee is HKD 15,000
• When an issuer makes a subsequent share issue that is less than 20% of their initial listing volume, they are subject to a one-time fee of HKD 4,000
• For subsequent issues of 20% or more, the issuer will have to pay between HKD 25,000 to HKD 240,000, based on the number of shares being issued

For secondary listings:

• Initial listing fee of 25%, or a minimum of HKD 150,000
• Annual listing fee of 25%
• All other primary listing fees also apply to secondary listings 

The Hang Seng Index is the primary index of the Hong Kong Stock Exchange and is closely tracked by institutional investors. The index is made up of 73 of the largest companies listed on the SEHK.

What Is The Hang Seng Index?

The Hangs Seng Index is a market capitalization-weighted index that tracks 73 of the largest companies listed on the Hong Kong Stock Exchange. The index was first published in 1969 and is managed by Hang Seng Indexes Company Limited - a subsidiary of the HKEX. 

The index is calculated using a free float-adjusted market cap-weighted methodology, which means that larger companies have an outsized impact on the performance of the index. 

The HSI, as well as most of the global economy, endured a tough year in 2022 but has rebounded significantly since the start of 2023.

Hang Seng Index Weighting By Sector & Largest Members

Sector weighting on the Hang Seng Index, or HSI, is distributed thusly:

According to the table, the financial and information technology sectors account for over 60% of the weight of the HSI, which makes it one of the most concentrated indexes in the world and provides a clear picture of what purpose the SEHK serves within Hong Kong and Mainland China.

As for individual constituents, here’s how the 10 largest HSI members are weighted:

The Hang Seng China Enterprises Index, or HSCEI, is a stock market index that tracks the performance of the 50 largest Chinese companies listed on the Hong Kong Stock Exchange.

What Is The Hang Seng China Enterprises Index?

Similarly to the HSI, the HSCEI is also weighted based on a free float-adjusted market cap methodology, which means that the largest members will have a bigger impact on the performance of the index. The 50 members of the index are some of the largest corporations in Mainland China and include H-shares and red chip companies from the country. 

HSCEI Weighting By Sector

The weight allocation by market sector within the HSCEI members can be broken down as follows:

Much like the HSI, the HSCEI is also dominated by the financial and information technology sectors. It is also worth noting that there are no constituents from the materials sector. 

• The Hong Kong Stock Exchange is one of the largest securities exchanges in Asia
• The exchange is home to over 2,500 companies, a large number of which are from Mainland China
• The Hang Seng Index is the most important equity index on the exchange, which tracks 73 of the largest companies listed on the SEHK
• The exchange works Monday through Friday from 9:30 am to 12:00 and from 12:00 to 4:00 pm
• The HKEX upholds stringent listing requirements for companies who want to list there. However, the fees charged by the exchange are relatively low
• The HSCEI index is home to the largest Chinese companies listed on the exchange