ABSTRACT
Bonds were first listed on a Hong Kong stock exchange as early as the 1970s, but there was never a large number listed in either the 1970s or 1980s. As recently as January 1989 there were only nine bonds quoted on the Stock Exchange of Hong Kong (SEHK). The main participants in Hong Kong's bond market are issuers, underwriters, dealers (few bonds are brokered), and buyers. Other participants are the investment advisers who have to be registered with the Securities and Futures Commission (SFC) and the paying agents. Securities dealers in Hong Kong operate as corporations, individuals, partnerships, or directors of companies. They are regulated by the SFC and, as recognized dealers, must register with the SFC in accordance with Hong Kong's Securities Ordinance. During most of the postwar period the market for bonds and similar debt securities in Hong Kong has traditionally been less active as a source of finance than bank loans and equities.
