Hong Kong Exchanges and Clearing Limited

Abstract

Hong Kong Exchanges and Clearing Limited (“HKEx”) is a listed company, regulating all the core stocks and derivative marketplace in Hong Kong. This project focused on HKEx’s strategic alternatives towards Shanghai Stock Exchange’s (“SSE”) rise in recent years. HKEx and SSE are the core parts in respective finance industries. Debates over the sibling rivalry between them have increased year after year. Therefore, the target of this project is to analyze the competitive landscape HKEx faced, describe the strategic alternatives HKEx may have, and provide solution that can address this situation and support HKEx’s further development. The project is divided into 2 parts, case study and case analysis. The first part included A Case and B Case. A Case described the background of HKEx, SSE as well as China’s capital market. Then it introduced HKEx’s planning about accepting mainland accounting standards, make new listing rules to mineral and exploration companies, and developing RMB products. B Case presented the new competitive landscape and HKEx’s strategic plan 2010-2012, followed by HKEx’s preparations for RMB products. For the second part, first I described its external and internal environment with five-force model and SWOT analysis. Then strategic alternatives were introduced. I made recommendations to HKEx with judgments at last.