This book explains the structure and outline of Hong Kong's equity markets, and examines Hong Kong's rising prominence (ranked sixth largest in the world) and importance as a financial centre in the region. It details the workings of the equity market system, covering the basics of all the major derivatives, and gives a brief overview of its other regional contemporary markets. Hong Kong's equity market has changed beyond all recognition over the last decade. The rise of China and East Asia has fuelled tremendous growth in this market. In the last two years alone, the market capitalisation of stocks traded in The Stock exchange of Hong Kong (SEHK) has grown by almost 100%. This growth, reflecting both the appreciation of existing stock values and a flood
of new listing, is expected to continue as the PRC develops in to a world economic power. The rising volumes of trading and recent flurry of 'H' share listings and other PRC-backed stocks, is also indicative of the PRC's commitment to establish Hong Kong as the centre of its financial system. Hong Kong's mantle as the financial
Readership: Professional and university students of finance and economics.
Paul McGuinness, Associate Professor, Department of Finance, Chinese University of Hong Kong