Hong Kong Futures Exchange
| Type | Futures exchange |
|---|---|
| Location | Central, Hong Kong |
| Owner | Hong Kong Exchanges and Clearing |
Hong Kong Futures Exchange (HKFE) is a futures exchange in Hong Kong. Established in 1976, it offered a variety of options and futures contracts, linked to stock market indices, stocks, short-term interest rates, and foreign exchange. HKFE is a subsidiary of Hong Kong Exchanges and Clearing Limited.
History
[edit]The HKFE went bankrupt in 1987 during the October 1987 global stock market crash when Sino Group chairman Robert Ng, who had been speculating in futures through two Panamanian-registered companies, suffered paper losses of HK$1 billion, but then refused to pay, claiming to be protected by the limited liability of the companies through which he had traded.[1] Trading was also halted on the Hong Kong Stock Exchange for four days.[2] An investigation by the Commercial Crime Bureau of the Royal Hong Kong Police revealed that Ng had avoided required margin calls through collusion with one of his brokers.[1] However, in the end, no charges were laid against Ng because the colonial government of Hong Kong felt that prosecuting him would pose a risk to overall market stability.[3] Instead, a deal was worked out which saw Ng repay HK$500 million, with Hong Kong taxpayers providing the rest of the funds needed by the Exchange through a government bailout.[2]
On 6 March 2000, a new parent company Hong Kong Exchanges and Clearing for the HKFE, the Stock Exchange of Hong Kong Limited, and Hong Kong Securities Clearing was formed.[clarification needed]
See also
[edit]References
[edit]Notes
[edit]- ^ a b Studwell 2007, p. 116
- ^ a b "Remembrance of Things Past: Hong Kong's market collapse of 20 years ago is worth recalling during the present turmoil", Asia Sentinel, 2007-10-23, archived from the original on 2010-01-04, retrieved 2009-06-05
- ^ Studwell 2007, p. 117
Sources
[edit]- Studwell, Joe (2007), Asian Godfathers: Money and Power in Hong Kong and Southeast Asia, Atlantic Monthly Press, ISBN 9780871139689
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