Securities | SGSL 

Equity securities, generally referred to as shares, comprise ordinary shares and preference shares.

Ordinary shares and preferred shares are equity shares issued by the company to shareholders. Ordinary or common shareholders (i.e. holders of ordinary shares), being owners of the company, have voting rights and receive dividends at the discretion of the company. However, the payment of dividends is not mandatory even if a company records a profit in the year.

Preferred shareholders are entitled to a preferential distribution out of profits prior to any distribution to the ordinary shareholders. Preferred shareholders have no voting rights and receive fixed dividends (i.e. the dividend does not increase even if the company's profit increases). Preferred shareholders also have a claim on corporate assets, in the event of liquidation, which ranks ahead of ordinary shareholders, but behind that of the company's creditors. Participating preference shareholders may receive additional dividends if the profits are sufficient. Meanwhile, cumulative preference shares carry forward the right to profits to following years, if there are insufficient profits to pay the holders in any one year.

Hong Kong Stock Trading Hours Stock transactions are conducted from Monday to Friday (except for Public Holidays), trading hours as follow:

Full Day Trading Half Day Trading
Auction Session Pre-opening Session 9:00 a.m. - 9:30 a.m.
Continuous Trading Session Morning Session 9:30 a.m. - 12:00 noon
Extended Morning Session 12:00 noon - 1:00 p.m. Not applicable
Afternoon Session 1:00 p.m. - 4:00 p.m. Not applicable
Auction Session Closing Auction Session 4:00 p.m. to a random closing
between 4:08 p.m. and 4:10 p.m.
12:00 noon to a random closing
between 12:08 p.m. and 12:10 p.m.
Full Day Trading
Auction Session
Pre-opening Session
9:00 a.m. - 9:30 a.m.
Continuous Trading Session
Morning Session
9:30 a.m. - 12:00 noon

Extended Morning Session
12:00 noon - 1:00 p.m.

Afternoon Session
1:00 p.m. - 4:00 p.m.
Auction Session
Closing Auction Session
4:00 p.m. to a random closing between 4:08 p.m. and 4:10 p.m.
Half Day Trading
Auction Session
Pre-opening Session
9:00 a.m. - 9:30 a.m.
Continuous Trading Session
Morning Session
9:30 a.m. - 12:00 noon

Extended Morning Session
Not applicable

Afternoon Session
Not applicable
Auction Session
12:00 noon to a random closing between 12:08 p.m. and 12:10 p.m.

Note: There is no Extended Morning Session and Afternoon Session on the eves of Christmas, New Year and Lunar New Year.  There will be no Extended Morning Session if there is no Morning Session.

Pre-opening Session

The maximum order size for automatch stocks is 3,000 board lots.  The maximum number of outstanding orders per broker ID has been removed while the number of orders in each price queue has been increased to 20,000 effective 29 January 2007.  Orders are accumulated over a certain period of time and matched at a pre-defined order matching period. Orders are matched in order type, price and time priority (at-auction orders carry a higher matching priority), at the final Indicative Equilibrium Price ("IEP").  The Pre-opening Session was introduced in March 2002.

Continuous Trading Session

The maximum order size for automatch stocks is 3,000 board lots.  The maximum number of outstanding orders per broker ID has been removed while the number of orders in each price queue has been increased to 20,000 effective 29 January 2007.  Orders are continuously executed in strict price and time priority.  An order entered into the system at an earlier time must be executed in full before an order at the same price entered at a later time is executed.

Closing Auction Session

The Closing Auction Session (CAS) is applicable to selected securities and consists of four periods: the Reference Price fixing period, order input period, no-cancellation period, and random closing period.

During the Reference Price fixing period, a Reference Price, which sets the allowable upper and lower price limits of the closing auction session (±5 per cent from the Reference Price), is calculated for each security that will have a Closing Auction Session.

During the order input period, at-auction orders and at-auction limit orders within the ±5 per cent price limit can be entered, amended or cancelled.

During the no-cancellation period, prices of new at-auction limit orders must be between the lowest ask and highest bid of the order book, and no orders can be amended or cancelled.

During the random closing period, the order rules from the no-cancellation period apply and the market closes randomly within two minutes.  After the random closing period, orders for all CAS securities are matched at the final IEP.  In cases where final IEP cannot be established during the CAS, the Reference Price will be treated as the final IEP for order matching and will become the closing price of the CAS security.  Order matching is based on order type, price and then time priority (at-auction orders carry a higher matching priority).