If a licensed person or registered institution is an Exchange Participant, its trading facilities can have direct access to HKEX's trading facilities. A list of Exchange Participants is available at “Participant Information” of “Find a Partner” under “PRODUCTS” of the HKEX website.

When selecting a securities or futures company, investor should compare services and fees of different companies.  Companies who provide in-depth research, investment advice or other value-added services may charge higher commissions than those which merely trade on behalf of clients. Some offer cash accounts only; others also manage discretionary accounts or margin accounts. Investors should weight their own investment and financial needs carefully before deciding on a securities or futures company and the type of accounts to be opened.

HKEX operates securities and derivatives markets that are open and free and welcomes the participation of investors from all over the world. However, overseas investors should comply with regulations governing overseas trading in their own countries or places of residence before trading in Hong Kong.

The SFC’s statutory regulatory objectives are:

• to maintain and promote the fairness, efficiency, competitiveness, transparency and orderliness of the securities and futures industry;
• to promote understanding by the public of the operation and functioning of the securities and futures industry;
• to provide protection for members of the public investing in or holding financial products;
• to minimise crime and misconduct in the securities and futures industry;
• to reduce systemic risks in the securities and futures industry; and
• to assist the Financial Secretary in maintaining the financial stability of Hong Kong by taking appropriate steps in relation to the securities and futures industry.

Regulation of takeovers, share repurchases and privatisations, which may involve investor conduct, is also the responsibility of the SFC.

Hong Kong Exchanges and Clearing Limited (HKEX) is the operator of Hong Kong’s central securities and derivatives marketplace and the front-line regulator of listed issuers (including listed companies). In this role, HKEX regulates 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 investors directly. Services provided by the exchanges and clearing houses include trading, clearing and settlement, depository and nominee services, and information services.

For more SFC and HKEX regulatory information, please visit the SFC website at www.sfc.hk and the “How We Regulate” section under "LISTING" of the HKEX website. 

HKEX’s regulatory functions in respect of listing are carried out by the Listing Department and the Listing Committee, which comprises largely independent members. Listing responsibilities are mainly of two types: (1) the formulation and administration of Listing Rules, which set out listing requirements for listing applicants and listed companies; and (2) the impartial enforcement of the Listing Rules. The Listing Rules adopts a disclosure-based regulatory approach for both initial public offerings, or IPOs, and listed securities, under which directors of a listed company are held responsible for the accuracy and completeness of all disclosure.

The Listing Department is the major contact for listing applicants and their advisers (namely sponsors and independent financial advisers). Information submitted by applicants to meet prospectus requirements in the Listing Rules and the Companies Ordinance is vetted by the Listing Department, which works with the Listing Committee to approve applications. HKEX is required under the dual filing regime to file applicant information with the SFC. The SFC has the right to reject an application.

HKEX is committed to closely monitoring Listing Rules compliance by listed companies and their directors. Measures include the monitoring of share price movements and media reports, and the vetting of important announcements and documents. Disciplinary actions will be considered against any listed company that violates the Listing Rules and/or its director(s). A listed company’s inaccurate or misleading disclosure that may give rise to a false market may constitute a criminal or civil offence. HKEX will refer these cases to law-enforcement agencies.

The SFC, as a statutory regulator, reviews the eligibility of sponsors and compliance advisers, continuously monitors their conduct and takes disciplinary actions against them if necessary. Under the Listing Rules, HKEX will only permit a firm which is a holder of the necessary SFC licences or appropriately registered by the SFC to work as a sponsor or compliance adviser. A sponsor must meet HKEX’s due diligence expectations when making a listing application for a company.

The Listing Rules and their latest updates are posted in the “Rules and Guidance” section under “LISTING ” of the HKEX website.

The two markets also differ in trading arrangements, for example:

There is no Extended Morning Session and Afternoon Session on the eves of Christmas, New Year and Lunar New Year.

DCASS stands for Derivatives Clearing and Settlement System which serves as a single clearing and settlement system for both the HKFE Clearing Corporation Limited (HKCC) and The SEHK Options Clearing House Limited (SEOCH).

DCASS shares the same platform and infrastructure with the derivatives trading system, HKATS.  HKATS and DCASS form the integrated trading and clearing system for the derivatives markets of HKEX.

Hang Seng Index (HSI) futures and options, H-shares Index (HHI) futures and options, Mini HSI (MHI) futures and options, Mini H-shares Index (MCH) futures and options, RMB currency futures, London Metal Mini Futures, Gold Futures, Iron Ore Futures, MSCI Asia ex Japan Index Futures and Total Return Index Futures (“TRI Futures”) are available for trading in AHT.