Bonds listed on the SEHK are traded on the SEHK in the same way as other listed stocks and warrants where firms trade in an agency capacity and generally charge a commission for such transactions.
Q1 : How are bonds listed on the SEHK traded?
Q2 : How are bonds not listed on the SEHK traded?
Firms trading in bonds that are not listed or traded on any exchange typically trade in a principal capacity and quote their own bid/offer price, which often includes a mark-up/mark-down over the price obtained from the market or counterparty. In these cases, these firms should disclose the fact that they are trading as principal and would generally not charge a commission.
Last update: 14 Sep 2004