HKEX is a parent entity for which of the following wholly owned subsidiaries?

• A. SEHK; HKFE; Associated clearing houses
• B. SEHK only
• C. HKFE only
• D. None of the above

Answer: (A)

Understanding HKEX’s corporate structure shows that it acts as the holding company for both the securities and derivatives markets and the clearing facilities that support them. HKEX wholly owns The Stock Exchange of Hong Kong Limited (the securities market) and The Hong Kong Futures Exchange Limited (the derivatives market), and it also owns the clearing entities that service both markets. These clearing houses operate under HKEX to clear and settle trades, providing the necessary risk management for both markets. Because HKEX is the parent of all three—SEHK, HKFE, and the associated clearing houses—the statement that HKEX is the parent for these subsidiaries is correct. The other options would imply ownership of only one market or none, which doesn’t reflect HKEX’s integrated structure.