Sophisticated Regulations, Fair Legal System: Hong Kong SFC imposes regulations and monitorings on listed companies and on share markets. Hong Kong Exchange has stringent requirements on getting listed, together with the independent legal system and protection to share holders and investors, Hong Kong is well known in the world as a fair, just and transparent capital market.
Higher Investment Reward: China market is not completely open, added to the control on foreign exchange, there is discount between the companies listed as the A shares and H shares, which makes investing in H shares more attractive.
E-settlement system: Hong Kong Exchange Central Clearing and Settlement System uses Continuous Net Settlement system, which elevates the original T+2 settlement to the effect of T+0, thus enhances the flexibility of the capital, allowing the investors to profit in short term investment opportunities.
Product Diversification: Hong Kong SFC monitors a variety of investment products, including stocks, derivatives, callable bull and bear contracts, equity linked notes, exchange traded funds and bonds. Hong Kong is the most active exchange market in derivatives, measure in accordance with transaction volume. Through Qualified Foreign Institutional Investment, a number of Exchange Traded Funds which traces the China A stock performance are not traded in Hong Kong market. With the help of derivatives of these ETFs, such as CBBC, investors are not able to hedge the risk for the investments in A share markets. |
