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      Market Overview

      Hong Kong has one of the world's most active and liquid securities markets. There is neither control over capital movement nor capital gains or dividend income tax. Trading services of the securities industry are provided by investment banks, commercial banks, finance companies and securities brokerage companies. Investment banks are the principal underwriters for initial public offerings (IPO). Hong Kong's highly liberal and liquid securities market has attracted many international investment banks and securities houses to build their presence here, eyeing the IPO and securities businesses. In the secondary market, local retail customers are served mainly by local brokers and banks, whereas institutional buyers are principally served by the international brokers and investment banks. Being the most liquid overseas market for mainland enterprises, Hong Kong is an important center for raising capital for companies on the Chinese mainland.

      About HKEX

      HKEX Group is a leading financial market operator in the world. From our home in the financial hub of Hong Kong and an additional base in London, they provide world-class facilities for trading and clearing securities and derivatives in Equities, Commodities, Fixed Income and Currency.


      Uniquely positioned at the intersection of Chinese and international capital flows, Hong Kong has long been Connecting China with the World. With the accelerated opening-up of China’s capital markets, HKEX continues to be a pioneer at the forefront of this historic transition, which they believe will Reshape the Global Market Landscape.

      Overview
      • Hang Seng Index (“HSI”)
      • Red Chips Stocks
      • Hang Seng China Enterprises Index

        Hang Seng Indexes Company Limited("Hang Seng Indexes"), a wholly-owned subsidiary of Hang Seng Bank, manages and compiles the Hang Seng Family of Indexes. It is responsible for compiling, publishing and managing the Hang Seng Index and a range of other stock indexes, such as Hang Seng China Enterprises Index, Hang Seng China AH Index Series, Hang Seng China H-Financials Index, Hang Seng Composite Index Series, Hang Seng China A Industry Top Index, Hang Seng Corporate Sustainability Index Series and Hang Seng Total Return Index Series.


        HSI


        The HSI was launched on 24 November 1969. When the Hang Seng Index was first published, its base of 100 points was set equivalent to the stocks' total value as of the market close on July 31, 1964.


        Selection criteria for the HSI constituent stocks


        HSI constituent stocks are selected with the use of extensive analysis, together with external consultation. Must be among those that comprise top 90% of the total turnover on the Stock Exchange of Hong Kong Limited "SEHK".

        Red chips stocks


        Red chips stocks are the stocks of mainland China companies incorporated outside mainland China and listed in Hong Kong. These businesses are based in mainland China and controlled, either directly or indirectly, by the central, provincial or municipal governments of the People's Republic of China but listed in Hong Kong to allow overseas investment in the companies.


        The term was coined by Hong Kong economist Alex Tang in 1992 and is a play on term blue chip stocks with the word "red" representing the People's Republic of China and the Chinese Communist Party.

        Hang Seng China Enterprises Index


        Hang Seng China Enterprises Index is a stock market index of The Stock Exchange of Hong Kong for H share only. H share is a class of ordinary share of the mainland China incorporated company that only traded outside the mainland China; all of these companies were majority owned by the central or regional Chinese government. In contrast, civilian-run enterprises of the mainland China listed their companies in Hong Kong using "foreign"-incorporated holding companies as P chip (either Bermuda, the Cayman Islands or Hong Kong); those using the same method but majority owned by the central or regional Chinese government, was known as red chip; red chip had their own separated index.