Hong Kong foreign exchange market is an international foreign exchange market developed since the 1970s.Since the abolition of foreign exchange control in Hong Kong in 1973, a large amount of international capital has flowed in, the number of financial institutions operating foreign exchange business has increased, and the foreign exchange market has become more and more active, becoming an international foreign exchange market.
The Hong Kong foreign exchange market is an invisible market with no fixed trading place. Traders conduct foreign exchange transactions through various modern communication facilities and computer networks.Hong Kong's geographical location and time zone conditions are similar to those of Singapore, and it is very convenient to trade with other international foreign exchange markets.
The participants in the Hong Kong foreign exchange market are mainly commercial banks and finance companies.There are three types of foreign exchange brokers in this market: local brokers, whose business is limited to Hong Kong;International brokers are brokers who expanded their business to other foreign exchange markets in Hong Kong after the 1970s;An international broker growing up locally in Hong Kong, that is, a Hong Kong broker whose business has expanded to other foreign exchange markets.
Market participants are divided into commercial banks, deposit companies andforeign exchange broker Three types.Commercial banks mainly refer to the HSBC Group and the foreign bank group composed of HSBC Bank and Hang Seng Bank.The vast majority of market transactions are conducted between banks, accounting for about 80% of all business in the market. As a unique financial entity, deposit companies have played a positive role in the development of the Hong Kong foreign exchange market.During the period of suspension of application for new bank license (1975-1978), deposit companies were an indirect way to set up banks in Hong Kong.There is one foreign exchange broker in the Hong Kong foreign exchange market. They are members of the Hong Kong Foreign Exchange Brokers Association. Their membership has made them recognized by the Hong Kong Association of Banks.The 166 licensed banks in Hong Kong are only allowed to trade with members of the Hong Kong Association of Foreign Exchange Brokers.Most transactions in this foreign exchange market are spot transactions, and forward transactions and swaps account for about 20%.
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Before the 1970s, Hong Kong's foreign exchange market was dominated by the exchange of Hong Kong dollars and British pounds.After the 1970s, with the internationalization of the market and the decoupling of the Hong Kong dollar from the British pound from the US dollar, the US dollar became the main foreign currency traded in the market.The transactions in the Hong Kong foreign exchange market can be divided into two categories: one is the exchange of Hong Kong dollars and foreign currencies, in which the exchange with US dollars is the main one.The other is the exchange of US dollars into other foreign currencies.
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Trading hours in the Hong Kong foreign exchange market
The time zones of Hong Kong and Singapore are very close, located in the middle of the European shopping malls and the American shopping malls, and are the hub shopping malls connecting the global shopping malls. The business volume is much smaller than that of European shopping malls and American shopping malls. However, since Hong Kong and Singapore are both free ports, the concentration of foreign exchange transactions is very high, and business is increasingly repeated.
