We’re launching an exciting new feature that will eventually give you all access to one of Asia’s fastest growing exchanges, and the opportunity to fast-track your financial freedom using lucrative Chinese markets.
The Hong Kong Stock Exchange (HKEX) is now being tested across our platform in a closed beta. For now, you’ll be able to view HKEX stocks, analyse them, and add them to your watchlists. In the new year, our developers are going to do a final sweep to make sure everything’s functioning as normal, and we’ll roll out the exciting new product to the entire SelfWealth community.
Many of you won’t be familiar with the HKEX, also known as the ‘SEHK’ (Stock Exchange of Hong Kong) if you’re looking for an easier acronym to pronounce, so we’re taking this opportunity to rattle off a few key points as to why we think it’s an important edition to your portfolio.
Why Should You Trade on The HKEX?
While it flies under the radar, the HKEX is the one of the largest exchanges in the world. It’s the sixth largest by market capitalisation, beating out the London stock Exchange and (eighth) and sitting just behind the Shanghai Exchange (third). For scale, the SEHK is roughly five times the market capitalisation of the ASX, which is 18th on the list. Currently, the SEHK weighs in at around $8.6 trillion AUD. Not too shabby.
What Stocks Are Available through the HKEX?
The HKEX is a combination of the SEHK, the London Metals Exchange, and Hong Kong Futures Exchange Limited, and has a range of products, securities, and commodities.
The top five stocks on the exchange, as of publish date (alongside their codes) are:
- TENCENT (700)
- BABA-SW (9988)
- MEITUAN (3690)
- JD-SW (9618)
- NTES-S (9999)
Not sure what any of those are? You may be familiar with Tencent, the world’s largest video game vendor and owner of WeChat, and BABA-SW which is Alibaba Group Holding Limited. You’ll also find luxury brands like Prada, and a slew of high profile electric vehicle manufacturers taking advantage of Chinese manufacturing capabilities to take a slice of Tesla’s market share.
How Many Stocks are on the HKEX?
There are over 2500 companies listed through the HKEX. You can also access a wide variety of other investment opportunities through funds.
How Fast is the HKEX Growing?
In April 2021, the HKEX reported its best ever quarter with a phenomenal 70 per cent jump. While this ties in with market growth during COVID, the HKEX also saw an 86 per cent increase in daily market turnover — a spike caused by increased offshore interest in Chinese funds.
The narrative of China as the world’s fastest growing economy — and mused as soon to become the world’s largest economy — rings true for HKEX. Growth is surging, and we’re hoping that providing the SelfWealth investing community with access will help diversify and expedite your wealth creation.