What is the relationship between HKEX and SEHK?

• A. SEHK is the exchange controller of HKEX
• B. They are completely independent
• C. SEHK is a subsidiary of the SFC
• D. HKEX is the exchange controller of SEHK and its holding company

Answer: (D)

Think of the structure as a parent and its subsidiary. HKEX is the holding company that owns SEHK, so SEHK operates as a subsidiary within the HKEX group. This means HKEX sets the overall strategy, governance, and controls SEHK’s operations, while SEHK runs the Stock Exchange of Hong Kong Limited as part of the HKEX family. The regulator in Hong Kong is the SFC, not the exchange controller, so the key point is that HKEX exercises control over SEHK as its holding company.