Stock Exchange of Hong Kong, abbreviated SEHK, is one of the largest stock exchanges in Asia. The exchange allows local and foreign investors to trade shares in companies in Hong Kong and other parts of China. The buying and selling of shares on the Stock Exchange of Hong Kong has been wholly electronic since 1993. Hong Kong Exchanges and Clearing Limited (HKEx) owns the Stock Exchange of Hong Kong. HKEx also controls the Hong Kong Futures Exchange and the Hong Kong Securities Clearing Company.
Hong Kong has a history of stock exchange trading, dating back to 1891, when Hong Kong was controlled by the United Kingdom. During the 1970’s, there were four Hong Kong-based stock exchanges: the Hong Kong Stock Exchange, the Far East Exchange, the Kam Ngan Stock Exchange, and the Kowloon Stock Exchange. In 1980, these exchanges agreed to form a unified exchange, the Stock Exchange of Hong Kong. Trading on the Stock Exchange of Hong Kong began on April 2, 1986.
The Hong Kong Futures Exchange, established in 1976, provides a market for the trading of financial futures and options contracts. The Hong Kong Securities Company provides a central _clearing system—_that is, a system for the settling of accounts and the exchange of checks and bills.
In 1997, the United Kingdom transferred control of Hong Kong to China. The two countries agreed, however, that Hong Kong would maintain its free-enterprise economy. The Stock Exchange of Hong Kong continued its operations, unaffected by the transfer.
