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Hang Seng
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HISTORY
The Hong Kong Stock Exchange (HKEx) is a stock exchange located in Hong Kong. It is Asia's
second largest stock exchange in terms of market capitalization behind the Tokyo Stock
Exchange, and the sixth largest in the world behind Euronext.
the Hong Kong Stock Exchange had 1,615 listed companies, 776 of which are from mainland
China, 737 from Hong Kong and 102 from abroad (e.g. Cambodia, Italy, Kazakhstan,
etc.) [2] Hong Kong Exchanges and Clearing is the holding company for the exchange.
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Mission and strategic Plan HKEx is the operator and frontline regulator of the central securities and derivatives
marketplace in Hong Kong. In this role, HKEx works closely with the Securities and
Futures Commission (SFC) to regulate listed issuers; administers listing, trading and
clearing rules; and provides services at the wholesale level to customers of the
exchanges and clearing houses, including issuers and intermediaries - namely
investment banks or sponsors, securities and derivatives brokers, custodian banks and
information vendors - who service the investor directly. The only exception to HKEx's
wholesale role is the Investor Participant Account Service, which is mainly a custody
service provided to retail investors as well as institutions.
As an infrastructure provider, HKEx is essentially an IT-based enterprise. HKEx provides
services along the core part of the securities and derivatives transaction chains. These
services comprise trading, clearing and settlement, depository and nominee services,
and information services.
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MAIN ACTORS Market actors include individual retail investors, mutual funds, banks, insurance
companies, hedge funds, and corporations.
********The individual actors in the financial markets can be broken down into three
main categories: investors, intermediaries, and issuers. Specifically, market actors include
individual retail investors, institutional investors such as mutual funds, banks, insurance
companies and hedge funds, and also publicly traded corporations trading in their own
shares. The value of a stock is derived from buying and selling decisions of these actors.
Some studies have suggested that institutional investors and corporations trading in their
own shares generally receive higher risk-adjusted returns than retail investors .
*****Pension funds are important shareholders of listed and private companies.
*****Insurance companies are generally classified as either mutual or proprietary
companies.
****A mutual fund is a type of professionally-managed collective investment vehicle that
pools money from many investors to purchase securities.
****An index fund or index tracker is a collective investment scheme (usually a mutual
fund or exchange-traded fund) that aims to replicate the movements of an index of a specific
financial market, or a set of rules of ownership that are held constant, regardless of market
conditions.
****An exchange-traded fund (ETF) is an investment fund traded on stock exchanges, much
like stocks.
*****A hedge fund is an fund that can undertake a wider range of investment and trading
activities than other funds. It is generally only open to certain types of investors specified by
regulators.
The Hang Seng Index is a free-float capitalization-weighted index of a selection of
companies from the Stock Exchange of Hong Kong. The components of the index are
divided into four subindices: Commerce and Industry, Finance, Utilities, and Properties.
The index was developed with a base level of 100 as of July 31, 1964.
Financing instrument
About the financial instrument in the Hong Kong Stock Exchange, we see several key features.
First, this is a binding, enforceable contract under the rule of law, protecting potential buyers. Second, there is the transfer of value between two parties, where a party can be a bank, insurance company, a government, a firm, or an individual. The future dates may be very specific (like a monthly mortgage payment) or may be quite uncertain and depend on certain events (like an insurance policy).
Amongst others :
***** Cash instruments (fr :produits optionel)
-share certificate or bond, used as means to acquire equity capital or loan capital.
*****Derivative instruments (fr: produits derives ferme)
*****-Commodities or securities contracted for delivery at a stated future date at a specified price. Such a contract (called futures contract) itself can also be traded.
**** -forward contract : Binding contract under which a commodity or financial instrument is bought or sold at the market price (spot price) as on today (date of making the contract), but is to be delivered on a stated future (forward) date in settlement of the contract. In contrast, a futures contract is only a formal promise. ----
-**** A swap is a derivative in which two counterparties exchange cash flows of one party's financial instrument for those of the other party's financial instrument. The benefits in question depend on the type of financial instruments involved. For example, in the case of a swap involving two bonds, the benefits in question can be the periodic interest (coupon) payments associated with such bonds. Specifically, two counterparties agree to exchange one stream of cash flows against another stream. These streams are called the legs of the swap. The swap agreement defines the dates when the cash flows are to be paid and the way they are accrued and calculated.
INDEX
HSI INDEX The Hang Seng Index is a free-float capitalization-weighted index of a selection of
companies from the Stock Exchange of Hong Kong. The components of the index are divided
into four subindices: Commerce and Industry, Finance, Utilities, and Properties. The index was
developed with a base level of 100 as of July 31, 1964.