Money & Finance › Markets of the world › China's stock markets: the Shanghai and Shenzhen exchanges
Hong Kong Exchanges (HKEX) and the Hang Seng index
Since 1891; Hang Seng 1969· Institution or agency
Fact, law or dataA rule, statute, definition or measured number.
Hong Kong's exchange group and its Hang Seng index, the main gateway between mainland Chinese companies and global investors.
See it on the Money & Finance map →How it works
Hong Kong's first formal exchange opened in 1891; four rival exchanges merged in 1986, and HKEX formed in 2000. The Hang Seng index, launched in 1969, tracks giants such as Tencent, Alibaba, HSBC and AIA, and mainland firms now dominate listings. Since 2014 Stock Connect links have let mainland and foreign investors trade each other's shares. HKEX bought the London Metal Exchange in 2012. In 2025 it raised about $35 billion in IPOs, the world's most, led by battery maker CATL.
Why it matters
It is how global money reaches Chinese companies and how mainland money reaches overseas stocks, so it is a daily gauge of foreign sentiment on China.
Facts, rules and data
HKEX annual reports and market statistics, Hang Seng Indexes data, Stock Connect daily flow figures, and LSEG, Dealogic and KPMG IPO league tables.
Debates and risks
Whether US–China tensions and the 2020 national security law erode Hong Kong's role, or mainland listings keep it central to Chinese finance.
Connections (4)
▸China's stock markets: the Shanghai and Shenzhen exchanges connect to foreign investors through Hong Kong Exchanges (HKEX) and the Hang Seng indexFact, law or data
The connection
China limits money flowing in and out, so Hong Kong serves as the doorway. Since November 2014 Stock Connect has let foreigners buy Shanghai and later Shenzhen shares through Hong Kong brokers ('northbound') and mainland investors buy Hong Kong shares ('southbound'). The money moves in a closed loop and returns to its home market when sold.
When and why
Shanghai–Hong Kong Connect opened November 17, 2014; Shenzhen joined on December 5, 2016; Bond Connect followed in July 2017.
How we know
HKEX publishes daily Stock Connect turnover and holdings; China's CSRC and Hong Kong's SFC issued joint announcements launching each link.
Debates and risks
Whether Beijing will open its capital account further or keep this managed doorway, and how much US–China tensions limit its use.
▸Hong Kong Exchanges (HKEX) and the Hang Seng index has owned since 2012 London Metal Exchange and the 2022 nickel squeezeFact, law or data
The connection
Hong Kong Exchanges and Clearing bought the LME in December 2012 for about £1.39 billion, betting that China, which uses about half the world's industrial metals, would want to trade and price them through a Hong Kong–owned exchange. HKEX later opened a commodities platform in Shenzhen (2018), and in 2025 the LME added Hong Kong as a delivery location.
When and why
Announced June 2012 and completed December 2012; HKEX chief executive Charles Li led the purchase.
How we know
HKEX and LME announcements, UK regulatory approval of the deal, and HKEX annual reports listing the LME as a subsidiary.
Debates and risks
Whether the price paid off for HKEX shareholders, and whether Chinese ownership shaped the 2022 nickel decision, as some critics suggested; the LME denies it.
▸Hong Kong Exchanges (HKEX) and the Hang Seng index is a top global venue for Initial public offerings (IPOs)Fact, law or data
The connection
Hong Kong lets mainland firms sell shares to global investors in a free-flowing currency. After 2018 rule changes allowed pre-profit biotech firms and dual-class shares, listings grew. In 2025 HKEX raised about $35 billion from IPOs, more than any exchange, including CATL's roughly $5 billion offering.
When and why
Hong Kong, notably 2019 (Alibaba's secondary listing) and 2025, when many A-share companies added Hong Kong listings.
How we know
HKEX year-end statistics and LSEG, Dealogic and KPMG league tables, which differ slightly on totals.
Debates and risks
Whether the IPO boom lasts, given its dependence on mainland companies and Beijing's approval of overseas listings.
▸China's property crisis and Evergrande's collapse (2021–) led to Evergrande's 2025 delisting from Hong Kong Exchanges (HKEX) and the Hang Seng indexFact, law or data
The connection
Evergrande listed in Hong Kong in 2009. A Hong Kong court ordered it liquidated on January 29, 2024, and its shares were suspended that day. HKEX rules allow delisting after 18 months of suspension, so the listing was cancelled on August 25, 2025.
When and why
Hong Kong, 2024–25; court-appointed liquidators from Alvarez & Marsal.
How we know
HKEX announcements, company filings and court records.
Debates and risks
How much creditors will recover; by mid-2025 liquidators had sold only about $255 million of assets.