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Hong Kong Exchanges and Clearing soars to become world’s largest exchange operator by market cap
- Hong Kong’s tech stocks shoot up on news of Ant listing plan, new Hang Seng Tech Index
- HKEX, the city’s exchange operator, surges 9.8 per cent – the most in five years
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Hong Kong’s stocks were on fire Tuesday, with the exchange operator’s shares surging to make it the world’s largest exchange operator by market capitalisation, following Ant Group’s plan to list in the city and Shanghai.
Alibaba Group Holding, to which Ant Group is affiliated, and exchange operator Hong Kong Exchanges and Clearing (HKEX) paced the gain after index compiler Hang Seng Indexes Co. announced plans to launch a gauge to track the biggest hi-tech stocks trading in the city next week. HKEX shot up 9.8 per cent for the biggest gain in five years, with trading volumes 63 per cent above the 20-day average. It closed at a record high of HK$380, bringing its year-to-date gain to 50 per cent.
HKEX is now valued at US$62 billion, while the London Stock Exchange, which rejected the HKEX’s overtures to buy it a year ago, is smaller, in fourth place.
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The Hang Seng Index added 2.3 per cent, or 577.67 points, to 25,635.66 at the close for its biggest gain since July 6.
China’s Shanghai Composite Index rose 0.2 per cent, extending a 3.1 per cent rally for the previous day. Stocks have been on a huge run-up on the mainland, prompting some concern they are overheated and bringing back memories of the 2015 stocks meltdown that wiped out US$5 trillion in market capitalisation.
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