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Hong Kong Financial and Banking System

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Hong Kong Financial and Banking System
International Finance Assignment
2013

Hong Kong Financial and
Banking system

Table of content

p.
Hong Kong Bank System

History of Bank in Hong Kong
1
Bank activities
2
Concentration of bank system
2
Bank main activities
2
The Hong Kong Monetary Authority (HKMA)
3
Crisis facing
3
Risk measurement
4
Influence from global financial crisis
4
Hong Kong Financial Markets

Stock market
5
Trade organization
6
Blue Chip
7
Shares Percentages
7
The influence of global financial crisis
7
Reference
8

Hong Kong Bank System
Bank loan in a firm
Let’s take a look at the percentage of firm’s external finance from bank loan.
The list below shows a rough calculation of companies in 2013/2012 and in order of their SEHK stock code. And these companies are spectacular enough to present the loan percentage in current market as a reference.

0001 Cheung Kong (Holdings) Limited: 48099/342652=14%
0002 CLP Holdings: 66198/228756=29%
0003 The Hong Kong and China Gas Company Limited: 6135.8/84919.3=7%
0004 The Wharf (Holdings) Limited: 5330/336018=2%
0005 HSBC Holdings: N/A(Itself is a bank company)
0006 Power Assets Holdings Limited: 23626/63035=37%
0007 Hoifu Energy Group Limited: 9156/219041=4%
Mean of the result: 15.5%

The ways they pick to maintain a certain amount of finance includes loans, bank overdraft, shareholders’ funds, perpetual securities and bonds.
Part of companies doesn’t lend many loans, but some has a medium level of loans like 0002 and 0006. In consideration of their huge scale of capital, they may not need to ask bank for more cash flow for operation.
For general medium or small enterprise, bank loan could occupy a high percentage of their capital. As they find difficult to get funds by stock or bond, these two activities have a lot of requirements, it doesn’t suit for any size of company.
The remained way is bank, it may provide a certain amount of loans for them
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