This Day In Market History: Hong Kong Stock Exchange Is Born

Each day, Benzinga takes a look back at a notable market-related moment that occurred on this date.

What Happened?

On this day in 1914, the Association of Stockbrokers in Hong Kong was officially renamed the Hong Kong Stock Exchange.

Where Was The Market?

The S&P 500 was trading at 8.48.

What Else Was Going On In The World?

In 1914, the first ever successful blood transfusion was performed in Brussels. Austria-Hungary declared war on Serbia following the assassination of Archduke Franz Ferdinand, officially beginning World War I. A car cost about $500 and a house cost around $3,500.

Hong Kong’s Financial Epicenter

Securities trading in Hong Kong goes as far back as 1866, but the market didn't become officially organized until the Association of Stockbrokers in Hong Kong was established in 1891. In February 1914, the name was officially changed to the Hong Kong Stock Exchange, which has grown over the decades to become Asia’s third largest exchange behind only the Tokyo Stock Exchange and the Shanghai Stock Exchange.

Over the years, the Hong Kong Exchange merged with a number of other exchanges, always maintaining its name. The exchange first introduced electronic trading in 1986 and completely closed its trading floor in 2017, transitioning to 100 percent electronic trading.

Today, the Hong Kong Stock Exchange lists nearly 2,000 companies and is the sixth largest stock exchange by market cap in the entire world. Its three largest primary listings by market cap are Tencent Holdings Ltd TCEHY, Industrial and Commercial Bank of China and China Construction Bank Corporation.

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