In today's highly competitive financial market, obtaining a Hong Kong Stock Exchange (HKEX) license is the dream of many financial institutions and practitioners. So, what conditions can enable you to successfully embark on this dream? Let's uncover the application conditions for the Hong Kong Stock Exchange license and explore the key to success.

 1. Understand the Hong Kong Stock Exchange

First of all, in order to successfully apply for a license for the Hong Kong Stock Exchange, it is crucial to understand the background and operation mechanism of the exchange. As one of the largest securities markets in Asia, HKEX's regulatory requirements and industry standards are quite rigorous and professional. Only by deeply understanding the operating model of HKEX can we better adapt to its regulatory requirements and lay the foundation for a successful application for a license.

 2. Meet regulatory requirements

Institutions or individuals applying for HKEX licenses must meet strict regulatory requirements. This includes but is not limited to sufficient capital strength, a sound internal risk control system, and a strong sense of compliance. For example, applicants need to have a certain net worth, a sound internal risk control system, and a compliance team to ensure that business operations meet regulatory standards.

 3. Professional team and management

In addition to meeting capital and risk control requirements, HKEX also attaches great importance to the applicant's management team. A stable, professional and experienced management team is a key factor in successfully applying for a license. These leaders need to demonstrate a deep understanding of the market, excellent leadership and keen risk awareness to ensure the sound operation of the institution.

 4. Transparency and compliance

In the financial industry, transparency and compliance are crucial. Applicants need to demonstrate transparency and compliance in their business operations to ensure that the interests of investors are effectively protected. Only by passing compliance audits, transparency assessments, and establishing a sound internal audit and compliance mechanism can they win the trust of regulators and successfully obtain the HKEX license.

 5. Technology and innovation capabilities

With the rapid development of financial technology, HKEX has also attached increasing importance to the technology and innovation capabilities of applicants. Having advanced trading technology, risk management systems and innovative financial products will greatly increase the chances of successful applications. Therefore, applicants need to continue to invest in technology and innovation, and demonstrate their advantages and foresight in these areas.

 Conclusion

In summary, applying for a Hong Kong Stock Exchange license is not an easy task. Applicants are required to have capital strength, internal risk control system, professional team, transparency and compliance, as well as technology and innovation capabilities. Only by fully understanding the operating mechanism of HKEX, strictly complying with regulatory requirements, and constantly improving one's own strength, can one stand out in the fierce financial market, successfully obtain a HKEX license, and open a new chapter in the financial industry. I hope that everyone who aspires to apply for a HKEX license can move forward courageously on this road full of challenges and opportunities and ultimately achieve their dream goals.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

The Hong Kong government is planning to introduce a licensing system for virtual asset service providers in the Legislative Council that is currently underway. This means that those who want to operate virtual asset exchanges must apply for a license from the Hong Kong Securities and Futures Commission. The Hong Kong government stated that this system will take effect on June 1, 2023. The reason is to give the virtual asset service industry sufficient time to complete the application for a license according to the relevant system. However, it is very necessary to understand the application conditions for the Hong Kong Stock Exchange license before submitting an application. The following Coin Circle editor will introduce this issue in detail for all investors. 

 What are the application conditions for the Hong Kong Stock Exchange license? 

The application conditions for the Hong Kong Stock Exchange license are the content that must be prepared before applying. As a world-renowned financial center and a strictly regulated exchange, the application conditions for the Hong Kong Stock Exchange license have the following requirements: 

VASP license applicants must prove that they have sufficient financial resources (minimum amount not yet specified). In the initial stage of the licensing system (duration not specified), licensed VASPs can only provide services to professional investors: 

1. Individual professional investors must hold an investment portfolio of more than HK$8 million (or equivalent foreign currency). 

2. Trust corporations must hold total assets of more than HK$40 million (or equivalent foreign currency). 

3. The corporation or partnership must hold an investment portfolio of more than HK$8 million (or equivalent foreign currency) or total assets of more than HK$40 million (or equivalent foreign currency).

Under the Securities and Futures Ordinance (SFO), the requirements for responsible officers of VASPs are the same as those for responsible officers of licensed companies, and require:

1. At least one responsible officer must be an executive director of the VASP applicant.

2. If the VASP applicant has more than one executive director, they must all be appointed as responsible officers.

3. At least one responsible officer must ordinarily reside in Hong Kong.

4. There must always be at least one responsible officer supervising the business of the VASP service.

Note: Hong Kong registered companies with a place of business in Hong Kong and non-Hong Kong companies registered under the Companies Ordinance will be eligible for a VASP license. Enterprises without independent legal personality (such as partnerships and sole proprietorships), individuals and overseas companies not registered in Hong Kong will not be able to obtain a VASP license.

 What is the use of the Hong Kong Stock Exchange license?

Obtaining a license from the Hong Kong Stock Exchange means being authorized to conduct exchange business on the Hong Kong Stock Exchange. As the main exchange and market infrastructure provider in Hong Kong, the Hong Kong Stock Exchange will be eligible to conduct exchange business on the Hong Kong Stock Exchange after obtaining the Hong Kong Stock Exchange license, including the trading and listing of financial products such as stocks, derivatives, and bonds.

The Hong Kong Stock Exchange is a well-known financial market, and its license will bring higher credibility and reputation to the enterprise, which will help attract cooperation from investors, institutions and listed companies, and strengthen the trust of market participants. As a license holder of the Hong Kong Stock Exchange, it can expand its business scope and provide a wider range of trading and market services, which may include introducing new products, providing more trading tools and services to meet the needs of different investors.

As an international exchange, the Hong Kong Stock Exchange has a wide network of international transactions and investors. Obtaining its license will enable cooperation and transactions with investors and institutions from all over the world, expand market coverage, and obtain a license from the Hong Kong Stock Exchange. Businesses will be regulated and protected by the financial regulators of the Hong Kong Special Administrative Region, which will help ensure that users' exchange business meets regulatory requirements and standards, and provide transparency, compliance and investor protection.

All of the above is the full answer to the question of what are the application conditions for the Hong Kong Stock Exchange license by the editor of the Coin Circle. At present, the industry generally has doubts about the relationship between the existing No. 1 and No. 7 licenses and the VASP license. Therefore, the SFC clearly requires in the consultation document that trading platforms should apply for No. 1, No. 7 licenses and VASP licenses at the same time to obtain dual licensing. It should be noted that obtaining a license from the Hong Kong Stock Exchange is a process that undergoes strict review and supervision, requiring applicants to meet certain conditions and requirements. In addition, after holding a license, it is necessary to comply with relevant laws and regulations and the regulations of the exchange to ensure the compliance and robustness of the business.