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Hong Kong Exchanges and Clearing Limited
Year-end Review
20 December 2001
1
2001 Market Highlights
(As of 14 December)
Funds raised
Main Board:
GEM:
Funds raised by IPOs
Main Board:
GEM:
Funds raised in the secondary market
Funds raised in H-shares and red-chips
markets
New listings
Expected at year-end:
HK$57.7 bil
HK$53.1 bil
HK$4.6 bil
HK$23.8 bil
HK$20.5 bil
HK$3.3 bil
HK$33.9 bil
HK$24.4 bil
80 (Main Board: 30; GEM: 50)
89 (Main Board: 31; GEM: 58)
2
2001 Milestones
- Commencement of trading of regional exchange traded funds
- Launched MSCI China Free Index Futures contracts
- New Main Board listing rules requirement for website posting of listed issuers'
announcements together with issuance of paid ad took effect
- Hosted Asia-Pacific regional meeting of ISSA in Hong Kong
- Announced the guidelines for issuers with negative or negligible net tangible assets
- Signed MOU with Shanghai and Shenzhen stock exchanges on the development of a China
securities market database
- Signed MOU with the Stock Exchange of Thailand on sharing of regulatory information
- Consulted market on derivative warrants rules
- Commencement of trading of regional exchange traded funds
--- Announced
Allowed
Board
companies
with
the policy on Main
Launched
MSCI
China
Free
Index
Futures
contracts
granting waiver to issuers for
two language
-- distributing
New
Main
listing rules
requirement
for website
posting
Launched
ORS
and
implemented
new
versions
of annual Board
and
primary
listings
and
applicants
to
adopt
interim reports
of listed issuers' announcements together with issuance of paid
order
types
and
revised
trading
International
Accounting
Standards,
and
ad took effect
Announced
the
policy
on
granting
waiver
-- Debut
of
HKEx
quarterly
newsletter
Asia-Pacific
regional
meeting
ofatISSA May
inoverseasHong Kong
parameters
for
AMS/3
January
- Hosted
GEM
allowed
Conference
Main
Board
Beijing’s
- Exchange
Announced
the for
guidelines
for issuers two
with negative
or
to
issuers
distributing
language
- incorporated
Signednet
MOU
with
the SFC
on
oversight,
Zhongguancun
companies
Science
Park
with
secondary
negligible
tangible
assets
February
March
June
April
of
annual
and
interim
reports
- versions
Signed
MOU
with
Shanghai
and
Shenzhen
stock
- Allowed MainParticipants
Board companies exchanges on
supervision
of
Exchange
listings
and
applicants
US
- Launched ORS and implemented
with primary to
listings adopt
and
theorder
development
market
database
new
types and revised of a China securities
applicants to
adopt International
- Debut of HKEx
- GEM Conference
trading
parameters
for
AMS/3
Accounting
Standards,
and
quarterly newsletter
and
market
surveillance
at
Beijing’s
GAAP
-- Signed
Signed
MOU
Thailand
on
sharing
MOU with
the SFC onwith the Stock Exchange
allowed Main of
Board
overseasExchange
Zhongguancun
oversight, supervision of
incorporated companies with
Science Park
of
regulatory
information
Participants and market
secondary listings and applicants
-- Exchange
GEM
Conference
in
Shanghai
surveillance
to adopt US GAAP
Consulted market on derivative- warrants
GEM Conferencerules
in Shanghai
3
2001 Milestones
---------
Tick
rule
exemption
on
index
arbitrage
and
Launched three-year EFN Futures contracts
market
making
transactions
took effect
Standardised
stock
andWeb
options
Launched
China
Stockfutures
Markets
with
New
rules
and
market
making
mechanism
for
contract
specifications
and
introduced
Shanghai
and
Shenzhen
stock
exchanges
Introduced Block
Trading
Facility
Migrated
stock
options
trading
to
derivative
warrants
took
effect
Signed
MOU
with
Luxemburg
Stock Exchange
more
local
stock
options
Launched
International
Stock
Futures
HKATS
Consulted
market
on
extended
trading
August
October
November
Signed
MOU
with
Kuala
Lumpur
Stock
on
sharing
of
regulatory
information
Joint
announcement
with the
SFC on the
and
Options
Launched
remote
trading
access
hours
Exchange
on sharing
of regulatory
information
September
July
December
HKEx
accredited
by the
SFC to offer
continuous
amendments
toHK
the
GEM
Listing
Rules
Received
Asia
Risk
magazine
award
for
programme
for
HKATS
(GL
Trade
in
Became
the
1st
listed
company
assigned
professional training to industry professionals a
GEM
Conference
with
Sichuan
derivatives
exchange
the year
corporate
governance
score
August
and
Radianz
inof
November)
Hosted
Futures
& Options
World
Conference
Provincial
Government
Chengdu
Announced
the introduction
of index basket
GEM Conference
in in
Chongqing
during
order
and pre-opening
Chongqing-Hong
Kongsession
week
4
- Migrated stock options
trading to HKATS
- Launched remote trading
access programme for
HKATS (GL Trade in
August and Radianz in
November)
- Introduced Block Trading
Facility
- Launched International Stock
Futures and Options
- Received Asia Risk magazine
award for derivatives exchange
of the year
- Standardised stock futures and
options contract specifications and
introduced more local stock options
- Joint announcement with the SFC
on the amendments to the GEM
Listing Rules
- GEM Conference with Sichuan
Provincial Government in Chengdu
- Consulted market on
extended
trading
hours
- Launched three-year EFN Futures contracts
- Launched China Stock Markets Web with Shanghai
and Shenzhen stock exchanges
- Signed MOU with Luxemburg Stock Exchange on
sharing of regulatory information
- HKEx accredited by the SFC to offer continuous
professional training to industry professionals
- Hosted Futures & Options World Conference
- GEM Conference in Chongqing during ChongqingHong Kong week
- Tick rule exemption on index arbitrage and market
making transactions took effect
- New rules and market making mechanism for derivative
warrants took effect
- Signed MOU with Kuala Lumpur Stock Exchange on
sharing of regulatory information
- Became the 1st HK listed company assigned a corporate
governance score
- Announced the introduction of index basket order and
pre-opening session
Looking
Ahead
Market Development




Introduce pre-market opening and basket orders
in Cash Market
Introduce extended trading hours in Cash and
Derivatives markets
Launch remote trading access for Cash Market
Review the current board lot system
5
Looking
Ahead
Market Development (cont’d)




Consult market on Listing Rules related to
corporate governance
Complete review of Main Board and GEM
Listing Rules
Evaluate dissemination arrangements for Main
Board listed companies’ announcements
Review delisting procedures
6
Looking
Ahead
Market Development (cont’d)




Evaluate operation of Phase 1 derivative
warrants rule changes
Review rules for listing of foreign issues
Further roll-out Derivatives Market’s Remote
Trading Access programme
Consolidation of clearing houses
7
Looking
Ahead
Market Infrastructure





Activate AMS/3 market making functions
Implement scheduled upgrades and
enhancements to HKATS
Launch CCASS/3 and DCASS
Launch e-Submission system
Work towards scripless securities market
8
Looking
Ahead
Product and Services




Introduce more international and regional
benchmark financial products
Introduce Equity Linked Notes (ELN)
Launch Brokers’ Electronic Support
Services (BESS)
Evaluate third party clearing for the cash
market
9
Looking
Ahead
China and International Development Strategy



Further develop ties with Mainland
exchanges
Further develop business network and
continue promotional and educational
activities on Mainland
Further explore alliances with other
exchanges
10
Thank you
11