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Market Passport

Hong Kong

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Market information

Supporting you

Key market information

  • Local currency

    Hong Kong
    Dollar (HKD)

  • 2017 GDP

    USD
    342bn

  • Time zone

    GMT
    +8 hours

  • Numbering
    system

    ISIN

  • Main stock
    exchange index

    Hang Seng

Key market figures

Market capitalisation USD 4,351bn
Number of listed companies 2,118
2017 value of share trading USD 2,079bn
Number of ETFs listed 133
2017 value of bonds trading USD 7.74bn
Number of bonds listed 1,047
Number of futures contracts traded in 2017 0.11m
Number of options contracts traded in 2017 103m

Local market infrastructures

  Equities Corporate bonds Government bonds Derivatives
Trading SEHK OTC via CMU OTC via CMU SEKH/HKFE
Clearing HKSCC n/a n/a SEOCH/HKCC
Settlement and custody HKSCC CMU CMU HKSCC
Cash leg HKICL HKMA HKMA n/a

Local market authorities and regulators

  • The Hong Kong Monetary Authority (HKMA) acts as the central bank and the regulator of banks
  • The Securities and Futures Commission (SFC) acts as the securities and derivatives regulator

Market practices (ALL TIMES ARE LOCAL)

SECURITIES
Settlement cycles
Equities T+2
Bonds Varies
Cash Varies
Cut-off times
Equities 3.45pm
Bonds 4.00pm
Cash 6.00pm
 
Omnibus account/securities Yes
Omnibus account/cash Yes
Pre-matching Yes
Irrevocable pre-matching No
Short selling Yes (some eligible securities)
Cash settlement/DVP Yes
Securities lending Yes
Foreign ownership limits No
Derivatives
Settlement Cash and physical
Trading cut-off Depends on individual products
Clearing cut-off 6.45pm
Tradable currencies HKD/USD/CNY
Account structure members Segregated and omnibus
Account structure non-members Segregated and omnibus
Give-up Yes
Give-up cut-off T+2
Adjustable ITM (In The Money minimum) Yes
Intra-day margin call Yes
Risk algorithm SPAN
Tolerance limits

Nominal limit of 10 units of the relevant settlement currency of the trade: HKD 10, USD 10, CNY 10.

Examples of market penalties

See buy-in practice below.

Buy-in practice

A compulsory buy-in is conducted against the failing party on the morning of T+3 with the failing party being responsible for buy-in costs and any incidental expenses, as well as a buy-in penalty of 0.5% imposed by HKSCC.

BNP Paribas customers benefit from free access to more detailed market information on our NeoLink webportal. Click here to access the Market Profiles or contact your relationship manager.

Supporting you

BNP Paribas Securities Services in Hong Kong

We are the largest General Clearing Participant (GCP) for equities in the Hong Kong market, working closely with HKEx to maintain our position as the premier service provider to banks and broker dealers.

Our main services

Core

We offer local clearing and custody to domestic and foreign institutions. Our core services include settlement, on-exchange clearing, safekeeping, corporate actions, proxy services, cash and collateral management.

Market-specific

  • Innovative solutions to access the mainland Chinese market
  • Local clearing solutions for both Hong Kong equities and Stock Connect Northbound trading, supporting the optional Stock Connect real-time delivery versus payment (DVP) model
  • Multi-Approved Partner Broker (MAP) Model, an integrated Stock Connect (Northbound) solution utilising partner brokers to internalise the settlement of transactions between the account of the investor and their broker
  • Live since July 2017, one of the foreign banks providing Bond Connect settlement and custody solutions
  • Broker-dealer outsourcing services

What makes us different

  • Proactive involvement to enhance local market infrastructure (NextGen programme) and the Connect programmes
  • The largest General Clearing Participant in the Hong Kong equities markets
  • Bespoke services to automate Bond Connect operating flows
  • Innovative, responsive technology responding to market changes and the individual needs of our clients

Selected market recognition

  • Global Investor Sub-Custody Survey(2017): Ranked first for Hong Kong – unweighted
  • The Asset Awards (2017): Best Sub-custodian, Broker-Dealers APAC

A sound partner

The BNP Paribas Securities Services Hong Kong branch was established in 2008, now clearing approximately 15% of the Hong Kong equities market. The service delivered by its 120 Hong Kong-based staff leverages the support of our regional centre of excellence in Chennai.

Contact

For more information, please contact your relationship manager or
Angely Yip, Head of Sales and Relationship Management, North Asia
angely.yip@asia.bnpparibas.com

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