Paper 7 Exam Study Guide (2026)
Everything the HKSI LE Paper 7: Financial Markets tests, topic by topic: what each section covers, the facts that come up most, and how to study it. Pair it with the free 15-question practice test.
The exam at a glance
| Questions | 60 multiple-choice questions |
|---|---|
| Time | 90 minutes |
| Passing score | 70% |
| Format | Closed book, computer-based |
| Certifying body | Hong Kong Securities and Investment Institute (HKSI Institute) |
| Test provider | HKSI Institute computer-based test centre in Hong Kong, or Prometric centres outside Hong Kong |
Mind map: the whole exam on one screen
Read the complete Paper 7 study notes for “Economics and the Hong Kong Economy”
Our first full set of comprehensive notes, about 10 minutes of reading: Measuring the economy · The business cycle · Policy in Hong Kong, a worked exam example, the traps examiners use and a one-minute recap. Create a free account to read it and see how premium notes work before you decide.
1. Economics and the Hong Kong Economy
Key economic ideas and indicators.
Key facts
- GDP measures total output.
- Inflation erodes purchasing power; real return ≈ nominal − inflation.
- The business cycle: expansion, peak, contraction, trough.
- Fiscal policy is government taxing and spending.
- Hong Kong is a small, open, service-based economy.
Flashcards
Exam tip: In Hong Kong, interest rates follow US rates because of the linked exchange rate.
2. Hong Kong's Financial System and Monetary Framework
The linked rate, the HKMA and the main financial regulators.
Key facts
- The HKD is linked to the USD within HK$7.75 to HK$7.85.
- The HKMA manages the Exchange Fund and supervises banks.
- The SFC regulates securities and futures; the IA regulates insurance; the MPFA regulates MPF.
- Banks are authorized institutions: licensed banks, restricted licence banks, deposit-taking companies.
- The Deposit Protection Scheme protects eligible deposits.
Flashcards
Exam tip: Know which regulator covers which sector: SFC, HKMA, IA, MPFA.
3. Equity Markets
Hong Kong's stock market structure.
Key facts
- SEHK has the Main Board and GEM.
- H shares: Mainland-incorporated; red chips: incorporated outside the Mainland but Mainland-controlled.
- Trades settle T+2 through CCASS.
- Stock Connect links Hong Kong with Shanghai and Shenzhen.
- Major indices include the Hang Seng Index.
Flashcards
Exam tip: H shares vs red chips: check where the company is incorporated.
Test yourself on these topics
Take the free 15-question Paper 7 test, then save your results to unlock your Readiness Score and the mistakes bank.
4. Debt Markets
Bonds and how they are priced.
Key facts
- Bond prices move inversely to yields.
- Longer maturities mean more interest-rate sensitivity.
Flashcards
Exam tip: A bond at a premium has a coupon above the market yield.
5. Derivatives and Investment Funds
Futures, options and collective investment schemes.
Key facts
- Futures are standardized, exchange-traded and cleared daily.
- Options give the buyer a right; writers take obligations.
Flashcards
Exam tip: Option buyer = right; writer = obligation.
6. Risk, Return and Investment Analysis
Measuring returns and risk.
Key facts
- Holding period return = (end − start + income) ÷ start.
- Systematic risk can't be diversified; unsystematic can.
Flashcards
Exam tip: Add income (dividends, coupons) to the price change in return calculations.
How to pass
- 60 questions in 90 minutes is 90 seconds each. Calculation questions (yields, returns) take longer, so move quickly through definitions.
- Know the Linked Exchange Rate System: HK$7.75 to HK$7.85 per US dollar, run by the HKMA through the Exchange Fund.
- Learn the differences between Main Board and GEM listings, and between H shares, red chips and other Mainland-related shares.
- You need 70%: 42 out of 60.
Frequently asked questions
How long should I study for the Paper 7 exam?
Most working candidates need 4 to 8 weeks at 45 to 60 minutes a day. Book your exam once your Readiness Score has stayed at 80 or higher for about a week.
Can I take the Paper 7 exam online?
Yes. Paper 7 can be taken at the HKSI Institute's computer-based test centre in Hong Kong or, for candidates outside Hong Kong, at a Prometric centre (higher fee). Format: closed book, computer-based. Check the HKSI Institute's current candidate information for the rules.
What score do I need to pass the Paper 7 exam?
70%. The exam has 60 multiple-choice questions and a time limit of 90 minutes.
What are the most tested topics?
The outline covers economics and the hong kong economy, hong kong's financial system and monetary framework, equity markets, debt markets, derivatives and investment funds, risk, return and investment analysis. Use the free practice test to see which ones you need most.
The premium Paper 7 study path
Premium Paper 7 prep is studied one topic at a time. Each step starts with that topic's key notes and flashcard deck, then its own question sets of 25, so you master one topic before you move to the next. When every topic is strong, the 6 full mock exams show you're ready.
Your step-by-step study path
- 1Economics and the Hong Kong Economy10 key notes, 135 flashcards, then 500 practice questions in 20 sets of 25Notes free with an account
- 2Hong Kong's Financial System and Monetary Framework10 key notes, 135 flashcards, then 500 practice questions in 20 sets of 25Premium
- 3Equity Markets10 key notes, 135 flashcards, then 500 practice questions in 20 sets of 25Premium
- 4Debt Markets10 key notes, 135 flashcards, then 500 practice questions in 20 sets of 25Premium
- 5Derivatives and Investment Funds10 key notes, 130 flashcards, then 500 practice questions in 20 sets of 25Premium
- 6Risk, Return and Investment Analysis10 key notes, 130 flashcards, then 500 practice questions in 20 sets of 25Premium
- Final step: 6 full mock exams60 questions each, timed like test day. Pass them, then book your exam.Premium
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- 3,000 practice questions + 6 full mock exams per exam
- 800 flashcards + 60 key notes per exam, by topic, plus mind maps
- Spaced repetition + mistakes bank
- Readiness Score & detailed reports
- Video lessons as they release
- Content updates during your access
- 5 bonuses: key numbers sheet, formula sheet, study planner and more
- Pass Guarantee: complete the prep, pass or 100% back
Renews once a year until you cancel. We email you before each renewal. Cancel any time from your account; you keep access until the end of the year you've paid for.
Summarized from the HKSI Institute's official candidate information and the rules cited, checked October 2026. Confirm current requirements with Hong Kong Securities and Investment Institute (HKSI Institute).