Financial Knowledge Base

• Hong Kong Stock Exchange (HKEX) dark pool trading involves numerous proprietary terms, with most being recognizable but some still unfamiliar.

Prompt: As a Chinese person, when seeing English financial news and information about actions of US listed companies, why are mergers and acquisitions written like this: NAOV reverse stock split: 1 for 10? Is this a unique English grammar that doesn’t conform to Chinese grammatical habits? Based on this, please explain the meaning of the stock split.

The practice of “the same contract code, for transactions in the same direction, commission is only charged once” is commonly referred to as “Commission Aggregation / Combined Commission” within the securities industry. This is not a hard-and-fast regulation by the Hong Kong Exchange or regulatory bodies, but rather a business convention formed through market competition and brokers’ efforts to optimize customer experience.

To truly understand the significant differences between traditional stocks and digital currencies in terms of trading and settlement, we need to deeply grasp the core “components” and “rules” that make up each ecosystem. We can view them as two entirely different games: one a rigorous, multi-party collaborative “professional league,” and the other a code-as-law, open-to-all “open world.”

In today’s era of the global digital wave, we’ve become accustomed to instant transfers and near-instant payments. Therefore, many people are confused: why, after clicking “sell” on a stock, does my funds not immediately clear in full and become available, but instead takes one or two business days? This is precisely a crucial and historically significant concept within traditional stock trading – settlement.

prompt: Why does traditional stock trading require the concept of settlement?

Unlike traditional stock markets with defined opening and closing times, the digital currency market has attracted the attention of global investors due to its 7x24-hour continuous trading feature. This characteristic has also raised a core question: how are digital currencies cleared and settled in a world without a “market close” concept? Does it completely overturn these concepts in traditional finance? The answer is that digital currencies not only have clearing and settlement, but the way they are implemented and their system design are key to supporting all-day trading.

Driven by the tide of technological innovation, RWA (Real World Assets) and Web3 have become hot topics in the financial industry. Traditional financial institutions – once regarded as conservative and stable giants – are now actively embracing these emerging concepts, vigorously promoting the development of RWA and DeFi (Decentralized Finance). However, behind this technology-driven transformation lies a core question worth pondering: Are these dazzling new concepts truly disruptive innovation, or simply giving traditional financial businesses a “new look”?

We use an easy-to-understand analogy to explain the relationship between digital currency “mining” and “accounting,” as well as why Bitcoin and Ethereum have different supply caps.