Paper 7: Financial Markets

What this paper covers

This is a Practical Paper — what the SFC calls a Recognised Industry Qualification (RIQ). It tests industry knowledge, product structure and day-to-day practice.

Questions	60 multiple-choice
Time	90 minutes
Pass mark	70%
Delivery	Computer-based (CBE), in English or Traditional Chinese

Syllabus areas

• Financial systems and markets
• Factors affecting global financial markets
• Participants in the Hong Kong financial system
• Factors affecting the Hong Kong market
• Equity pricing
• Stock market: indices, exchange, bull/bear
• Privatisation of government-owned companies
• HK equity market: development, structure, participants, trading and settlement

A summary of the main areas. Chapter structure and question weighting follow the latest HKSI Institute study material.

Who needs this paper?

Licensed representatives for these regulated activities must pass it:

• Type 1: Dealing in securities (Recognised Industry Qualification)
• Type 2: Dealing in futures contracts (Recognised Industry Qualification)
• Type 4: Advising on securities (Recognised Industry Qualification)
• Type 5: Advising on futures contracts (Recognised Industry Qualification)
• Type 6: Advising on corporate finance (Recognised Industry Qualification)
• Type 8: Securities margin financing (Recognised Industry Qualification)
• Type 9: Asset management (Recognised Industry Qualification)
• Type 10: Providing credit rating services (Recognised Industry Qualification)
• Type 11: Dealing in / advising on OTC derivatives (Recognised Industry Qualification) — pending commencement of the new regime
• Type 12: Client clearing for OTC derivatives (Recognised Industry Qualification) — pending commencement of the new regime
• Type 13: Depositary services for relevant CIS (Recognised Industry Qualification)

Full RA mapping and exemption rules: the complete SFC LE guide.

How to study for it

Practical papers test process and scenario judgement, so memorising statute gets you only so far. Map each product or process onto a timeline — who does what, when, and owing what duty — then use practice questions to check you can locate the role and obligation quickly under time pressure.

At 60 questions in 90 minutes you have roughly 90 seconds per question — practise under timed conditions.