Hong Kong Capital Market Exchange Ecosystem Market Size

Hong Kong Capital Market Analysis

The Hong Kong Capital Market Exchange Ecosystem Industry is expected to register a CAGR of 8% during the forecast period.

Trading other financial instruments, such as derivative contracts like options, different loans and other debt instruments, and commodity futures, can be done on the capital markets. Certain capital markets are directly accessible to the general public, while others are only accessible to major institutional investors. Private trading takes place at very fast speeds across secured computer networks, primarily between large institutions that engage in high-volume trading. A sizeable amount of the capital market trade volume comes from the stock and bond markets.

Primary and secondary markets make up the capital markets. Today's primary and secondary markets are primarily computer-based electronic marketplaces. The main marketplaces are where newly issued bonds and equities are exchanged. These are used by governments and businesses to raise capital; investors purchase directly from the issuer. Companies frequently issue both bonds and stock, whereas governments exclusively issue bonds.

These securities are known as IPOs or primary offerings. A firm that goes public sells its bonds and equities to institutional and large-scale investors, including sovereign wealth funds, mutual funds, hedge funds, and pension funds. Conversely, the markets where existing stocks and bonds are traded are known as the secondary markets. Here, a far greater range of assets is available. The secondary market is not involved with issuing corporations.