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Core papers · Last updated October 2026

HKSI LE Paper 7: Financial Markets: free practice test

The markets paper taken with Paper 1 by most representatives. It covers economics, Hong Kong's financial and monetary system, equity and debt markets, derivatives, funds, and basic investment risk and return.

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About the Paper 7 exam

The markets paper taken with Paper 1 by most representatives. It covers economics, Hong Kong's financial and monetary system, equity and debt markets, derivatives, funds, and basic investment risk and return.

What's on the exam

Paper 7
Economics and the Hong Kong Economy
5 key facts
Hong Kong's Financial System and Monetary Framework
5 key facts
Equity Markets
5 key facts
Debt Markets
5 key facts
Derivatives and Investment Funds
5 key facts
Risk, Return and Investment Analysis
5 key facts

Each branch is a topic in the official outline. Members see every key fact on the full mind map. Read the free study guide →

How to pass the Paper 7 exam

  • 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.

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Create a free account after the test: your score by topic, a mistakes bank, the complete study notes for the first topic, flashcards and the HKSI Key Numbers Sheet.

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What's in the premium Paper 7 prep

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.

3,000practice questions, every answer explained
6full-length mock exams, 60 questions each, timed
800flashcards with spaced repetition, sorted by topic
60comprehensive key notes across 6 topics

Your step-by-step study path

  1. 1
    Economics and the Hong Kong Economy10 key notes, 135 flashcards, then 500 practice questions in 20 sets of 25
    Notes free with an account
  2. 2
    Hong Kong's Financial System and Monetary Framework10 key notes, 135 flashcards, then 500 practice questions in 20 sets of 25
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  3. 3
    Equity Markets10 key notes, 135 flashcards, then 500 practice questions in 20 sets of 25
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  4. 4
    Debt Markets10 key notes, 135 flashcards, then 500 practice questions in 20 sets of 25
    Premium
  5. 5
    Derivatives and Investment Funds10 key notes, 130 flashcards, then 500 practice questions in 20 sets of 25
    Premium
  6. 6
    Risk, Return and Investment Analysis10 key notes, 130 flashcards, then 500 practice questions in 20 sets of 25
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  7. Final step: 6 full mock exams60 questions each, timed like test day. Pass them, then book your exam.
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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.

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Study tools included

3,000 practice questions

3,000 exam-style questions per exam, organized topic by topic in sets of 25. Every answer explained, with the rule it comes from.

6 full mock exams

6 full-length timed mock exams per exam, with real question counts and time limits, so test day feels like practice day.

Exam Readiness Score

One 0 to 100 number that tells you when you're ready to book. Reach 80 and you're covered by our Pass Guarantee.

800 flashcards + spaced repetition

800 flashcards per exam, in a deck for each topic, that come back right before you'd forget them. Five minutes a day keeps every number fresh.

60 comprehensive key notes

60 key notes per exam, split across its topics and each explained in full: the concepts, worked exam examples, the traps examiners use and a quick recap. Your first set is free with an account.

Mind maps

See the whole exam on one screen: every topic and the facts under it.

Sample questions with answers

These are the questions in the free test above, with answers. Try the test first. You'll learn more by getting some wrong.

1. Gross Domestic Product (GDP) measures:
Answer: The total value of goods and services produced in an economy over a period. GDP is the market value of all final goods and services produced within an economy in a period, usually a quarter or a year.
2. When inflation is 3% and a deposit pays 2% a year, the depositor's real return is approximately:
Answer: -1%. Real return ≈ nominal return − inflation = 2% − 3% = −1%. The deposit loses purchasing power.
3. Under the Linked Exchange Rate System, the HKMA undertakes to keep the Hong Kong dollar within the range of:
Answer: HK$7.75 to HK$7.85 per US$. The HKMA's Convertibility Undertakings are at HK$7.75 (strong side) and HK$7.85 (weak side) per US dollar.
4. Which body is Hong Kong's central banking institution, responsible for currency stability and banking supervision?
Answer: The Hong Kong Monetary Authority (HKMA). The HKMA maintains currency stability under the linked rate, manages the Exchange Fund and supervises authorized institutions (banks).
5. The Mandatory Provident Fund (MPF) scheme is regulated mainly by the:
Answer: Mandatory Provident Fund Schemes Authority. The MPFA regulates MPF schemes and trustees. The SFC authorizes MPF pooled investment funds, and the HKMA and IA supervise intermediaries in their sectors.
6. Shares of companies incorporated in Mainland China and listed in Hong Kong are called:
Answer: H shares. H shares are issued by Mainland-incorporated companies and listed in Hong Kong. Red chips are incorporated outside the Mainland but controlled by Mainland state entities.
7. Which board of the Stock Exchange of Hong Kong is designed for smaller and mid-sized companies, with lower listing requirements?
Answer: GEM. GEM (formerly the Growth Enterprise Market) serves small and mid-sized companies; the Main Board has higher profit and size requirements.
8. Trades on the Hong Kong stock market are normally settled through CCASS on:
Answer: T+2. Exchange trades settle on the second trading day after the trade date (T+2) through the Central Clearing and Settlement System.
9. When market interest rates rise, the prices of existing fixed-rate bonds generally:
Answer: Fall. Bond prices move inversely to yields. Existing bonds with lower coupons become less attractive and fall in price.
10. Exchange Fund Bills and Notes are issued by the:
Answer: HKSAR Government through the HKMA. The HKMA issues Exchange Fund Bills and Notes for the Exchange Fund. They help develop the Hong Kong dollar debt market and the yield curve.
11. A futures contract differs from a forward contract mainly because a futures contract is:
Answer: Standardized and traded on an exchange, with a clearing house. Futures are standardized, exchange-traded and cleared by a clearing house with daily marking to market. Forwards are private over-the-counter contracts.
12. A unit trust's net asset value (NAV) per unit is calculated as:
Answer: (Total assets − liabilities) ÷ units in issue. NAV per unit = net assets ÷ units in issue. Units are usually bought and redeemed at prices based on the NAV.
13. Systematic risk is the risk that:
Answer: Affects the whole market and can't be diversified away. Systematic (market) risk comes from economy-wide factors such as interest rates and recessions. Diversification removes only unsystematic risk.
14. A share bought at HK$50 pays a HK$2 dividend and is sold a year later at HK$53. The holding period return is:
Answer: 10%. HPR = (53 − 50 + 2) ÷ 50 = 5 ÷ 50 = 10%.
15. A stock with a beta of 0.8 is expected to:
Answer: Move less than the market, in the same direction. Beta below 1 means the stock tends to move less than the market. Beta measures systematic risk relative to the market.

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Certification guide

Which HKSI papers do you need?: To become an SFC licensed representative (or a relevant individual at a bank), you usually pass three HKSI Licensing Examination papers: Paper 1 on regulation, Paper 7 on financial markets, and one paper for your regulated activity. Here's which one.

Paper 7 exam FAQ

How many questions are on the Paper 7 exam?

60 multiple-choice questions, with a time limit of 90 minutes. Format: closed book, computer-based.

What is the passing score for Paper 7?

70%.

How much does the Paper 7 exam cost?

HK$1,620 in Hong Kong (HK$2,070 at overseas Prometric centres). Fees change, so confirm with the HKSI Institute before you enrol.

Which languages is the Paper 7 exam offered in?

English or Traditional Chinese.

Where do I take the Paper 7 exam?

HKSI Institute computer-based test centre in Hong Kong, or Prometric centres outside Hong Kong.

Is this Paper 7 practice test free?

Yes. The 15-question practice test on this page is free, with an explanation for every answer and no signup. A free account also unlocks the complete study notes for the first topic. The full Paper 7 prep is Premium at HK$1,147 a month for this exam.

What's in the premium Paper 7 prep?

3,000 practice questions organized topic by topic (Economics and the Hong Kong Economy: 500; Hong Kong's Financial System and Monetary Framework: 500; Equity Markets: 500; Debt Markets: 500; Derivatives and Investment Funds: 500; Risk, Return and Investment Analysis: 500), 6 full-length timed mock exams of 60 questions, 800 flashcards and 60 comprehensive key notes split across all 6 topics, plus a mistakes bank and the Readiness Score.

Compare Paper 7 with other HKSI papers

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Core papers

HKSI LE Paper 1: Fundamentals of Securities and Futures Regulation

The regulation paper almost every SFC licensed representative must pass.

15 free questions3,000 premium Qs · 6 mocks · 800 flashcards · 60 key notes
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Exam details are summarized from the official candidate information available in October 2026. HKSI Institute changes formats and fees, so confirm with Hong Kong Securities and Investment Institute (HKSI Institute) before you book. HKSIMock is not affiliated with the HKSI Institute or the SFC.

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