7.2 Development of the Stock Market and Banking

Securities transactions in Hong Kong have existed for more than a century.

Besides the original Stock Exchange of Hong Kong, three more institutions, namely the Far East Exchange, Kam Ngan Stock Exchange and Kowloon Stock Exchange, emerged in the boom years 1969-72, all being unified into the Stock Exchange of Hong Kong Ltd. in 1986.

Over the years, various other forms of investment such as trading in gold and silver, HIS futures and HIS options also swiftly developed.

Crises in the 1960s including bank runs, rocked the very foundations of the financial system.

In response, the Government restricted the issue of bank licences in 1965 and introduced the Deposit-taking Companies Ordinance in 1976 to tighten up the system.

Credit : History Museum of HK.