The following updates are examinable from 1 November 2020
TOPIC 1 – OVERVIEW OF SECURITIES INVESTMENTS
- Dates and data updated for the Main Board, GEM, the debt market, global securities market and Hong Kong market indices
- Material added relating to government initiatives and measures, including:
- Qualified Domestic Institutional Investors (QDIIs) and Qualified Foreign Institutional Investors (QFIIs) introduced in China in 2002
- QDIIs are local institutional investors (fund houses, banks, insurance companies and securities brokerages) in Mainland China who have been granted permission to invest in overseas financial markets
- QFIIs are foreign institutional investors who are allowed to invest in China A shares
- Investment by QFIIs and Northbound trading have a positive impact on the flow of funds into China
- In June 2020, the HKMA, the People’s Bank of China and the Monetary Authority of Macao jointly announced the launch of a cross-boundary wealth management connect pilot scheme (Wealth Management Connect) in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA)
- Qualified Domestic Institutional Investors (QDIIs) and Qualified Foreign Institutional Investors (QFIIs) introduced in China in 2002
TOPIC 2 – THE STOCK EXCHANGE OF HONG KONG: PRIMARY AND SECONDARY MARKETS
- Data updated relating to initial public offerings and prospectus publication
TOPIC 3 – PARTICIPANTS IN THE MARKETS
- Dates and data updated for the number of Exchange Participants in Hong Kong – 646 at 30 June 2020
TOPIC 4 – TYPES OF SECURITIES
- Dates and data updated for REITs, the Government Bond Programme and the Government Green Bond Programme
- New material relating to special features in the Hong Kong securities markets, including:
- Blue chips is a term used internationally to refer to the strongest, largest and most prestigious listed companies. Constituent stocks of the Hang Seng Index are considered as blue chips
- Red chips refer to companies incorporated outside the PRC, listed in Hong Kong with significant operations in the PRC (China Mobile, China Resources and Shanghai Industrial)
- H shares are shares of PRC incorporated companies listed on the SEHK (Sinopec, Bank of Communications, China Telecom and Tsingtao Brewery)
- US securities traded on SEHK: In 2000, a pilot programme for trading US securities was introduced to the Hong Kong stock market. The main characteristics of the securities in the pilot programme are:
- Listed on NASDAQ or NYSE Amex
- May include a number of exchange traded funds (ETFs)
- No Hong Kong public offering
- Not regulated as listings on SEHK’s Main Board or GEM
- Admitted on SEHK for trading only
- Traded under Hong Kong laws and SEHK rules
- Examples of pilot programme shares are: Cisco/Intel/Microsoft/Starbucks
TOPIC 5 – STOCK MARKET ADMINISTRATION
- Material updated relating to the Volatility Control Mechanism
TOPIC 6 –SECURITIES ANALYSIS
- No updates
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