Transcript 投影片 1 - Hong Kong Shue Yan University

ECON. 310
Financial Institution In H.K.
Section 1
Topic: Hong Kong As An
International Financial Centre
公司
標誌
Content
1) Introduction
2) Hong Kong and Singapore’s banking
system
3) Hong Kong and Singapore’s stock
market
4) Hong Kong and Singapore’s bond market
5) Conclusion and Recommendations
Commercial Banks in Singapore
Deposit taking
Provision of cheque and
lending
Commercial Banks in Singapore (Dec 05)
Local Full
Banks (5)
Foreign Full
Banks (24)
Foreign Banks
(105)
Wholesale Offshore
Banks (34) Banks (47)
Full Banks
Six of the banks operating in Singapore
have been awarded Qualifying Full Banks
(QFB) privileges
25 locations
Share ATMs among their sub-branches
freely
Qualifying Full Banks (QFB)
Credit card holder obtain cash
advances through ATM network
Provide debit service through their
network
Offer Supplementary Retirement
Scheme, CPF Investment Scheme
accounts
Wholesale Banks
Accept fixed deposit in Singapore dollar
(shall not be less than S$250000)
Current accounts in Singapore dollar (shall
not be interest-bearing )
Offshore Banks
Residents of
Singapore
Non-resident of
Singapore
Accepted fixed
deposits in
Accepted current
Singapore dollars
accounts in
(shall not be less
Singapore dollars
than S$250,000,
(shall not be interestincluding interest)
bearing and exceed
S$500million)
Banking system in HK
Three-tier system of deposit-taking
institutions
71 of the world’s top 100 banks
Three-tier banking system in HK
131 Licensed banks
36 Restricted license banks
35 Deposit-taking companies
Licensed bank
It operate current
and savings accounts only
accept deposits of any size and maturity
from the public
pay or collect cheques drawn by or paid in
by customers.
Restricted license bank
mainly engaged in merchant banking
and capital market activities.
Accept deposits of any
HK$500,000 and above.
maturity
of
Deposit-taking company
mostly owned by, or otherwise associated with,
banks.
consumer finance and
securities business
deposits of HK$100,000 or above with an original
term of maturity of at least three months.
Local representative offices
overseas banks may establish local
representative offices
not allowed to engage in
any banking business
mainly to liaison work between the bank
and its customers
Singapore Stock Market
Singapore Exchange Limited (SGX)
Main market in Asia following HK and Tokyo
Independently open to the public
Singapore Exchange Limited (SGX)
 Asia-Pacific's first demutualised and integrated securities
and derivatives exchange in 1st,Dec,2000
 Stock Exchange of Singapore (SES) +the Singapore
International Monetary Exchange (SIMEX)=SGX
 Functions: A comprehensive and efficient infrastructure
for raising capital, and for investors to transact and clear
financial products.
Singapore Stock Market
660 listed companies (includes domestic
and foreign)
Includes SGX Mainboard and SGX
SESDAQ.
Strait Times Index (STI):45 components
Strait Times Index (STI)
Singapore Stock Market
No. of
companies
domestic
2003
546
2005
660
No. of companies in 2005
No. of
foreign
companies +
Mainboard 48.94%
SESDAQ
2004
589
19.85%
Source:http://info.sgx.com
No. of
companies
Mainboard 25.5%
SESDAQ 6.06%
=100%
Singapore stock Market
total capitalisation(s$'000)
460,000,000
440,000,000
420,000,000
400,000,000
380,000,000
360,000,000
Year
340,000,000
320,000,000
2003
2004
2004
2005
2005
%change
+
in total
19.58% 6.98
capitalisat
%
ion
Source: http://info.sgx.com
Stock Market in Hong Kong
Hong Kong Stock Market
 Fourth largest in the world
 Most important in Asia Market
Total capital raised --- US$36 billion
The world's most active and liquid
securities markets
 Play a key role in funding
China's state-owned enterprises
Statistics of HK Stock Market
Up to the end of November 2005
Main Board
Number of Listed Companies
Total market capitalisation(HK$Mil.)
Total turnover in value (HK$Mil.)
Growth Enterprise Market
Number of Listed Companies
Total Market Capitalization (HK$Mil)
Source: Hong Kong Exchanges and Clearing
922
$7,959,098
$394,202
202
$72,428
Main function of HK Market
Raising capital for the Chinese Mainland
304 Mainland companies were listed in Hong
Kong
Total market capitalization amounting to HK$
2.0 trillion (US$ 256 billion)
30% of Hong Kong's total market
capitalization.
1993-2004 raised HK$895 billion (US$ 115
billion)
Bond market in Singapore
History of the bond market
Singapore
Government
 budget surpluses
Bond market
 small and
undeveloped
Corporations
 borrowing from
banks
Asian Crisis (1997)
Importance of deep
and efficient capital
markets
Overdependence
on bank finance
Well-diversified financial system
•risk management
•more efficient manner
of allocating resources
and capital
Singapore bond markets
Asian dollar bond market (ADB)
Singapore government securities market
(SGS)
Singapore dollar corporate bond market
(SDCB)
Asian dollar bond market (ADB)
was initiated in the early 1970s
issue in December 1971
for international bonds denominated in the
US dollar, the Japanese Yen, or other hard
currencies
corporations, financial institutions, national
governments and their agencies, and
international organizations
Singapore government securities
market (SGS)
 Major measures
 MAS would begin to issue more Singapore
government securities with longer maturities, and
encourage statutory boards and governmentlinked corporations to increase their security
issuance
 MAS would grant tax exemptions for fee income
earned by financial institutions operating in debt
securities in Singapore
 Interest income earned by financial institutions
and corporations from holding debt securities
would be subject to a concessionary 5% tax rate
Singapore dollar corporate bond
market (SDCB)
 transformed since 1998
 two strategies
 encouraged the statutory boards and
government-linked corporations (GLCs) to tap the
bond market
 opened up the Singapore dollar bond market to
foreign issuers; if funds were raised for use in
Singapore, issues by non-bank nonresidents no
longer required MAS approval
 restrictions on the credit rating of issuers and the
minimum size requirement were abolished
Govt Securities Maturity Profile-LCY:
SG
Benchmark Yield Curve - LCY
Bonds : SG
Trading Volume - SG
Size of LCY Bond Market in USD :
SG
Share of FCY Bonds to Total
Bonds Outstanding : SG
Hong Kong’s Bond Market

a)
b)
c)
Three type of bonds
Government bond
Corporate bonds
Supranational Bonds
Government Bonds
a) Exchange Fund Bills
(91-, 182- and 364-day)
b) Exchange Fund Notes
(2-,3-,5-,7-10-year)
Trading Volume
Trading Volume-SG
Benchmark Yield Curve - LCY
Bonds
Benchmark Yield Curve - LCY
Bonds-SG
Government Security Maturity
Profile-LCY
Corporate Bonds
In September 1977, by Chase Manhattan
Bank
The issue size was HK$100 million
A five-year issue with a coupon rate of
prime
an interest rate 5.25%
Corporate Bonds
From 1995 to 2005, the corporate bonds
are rapid increase
Increases from 18.8 billions USD to 63.8
billions USD.
Size of LCY Bond Market in USD
Size of LCY Bond Market in USDSG
Supranational Bonds
Played an important role in the
development of the Hong Kong bond
market
The first supranational issue was launched
in 1989 by the World Bank
Share of FCY Bonds to Totals
Bonds Outstanding
Conclusion & Recommendations
For the Hong Kong Banking System


HKMA has launched several measures
e.g. Removal of the Interest Rate Rules
To consolidate Hong Kong IFC status
 Opening the Renminbi service
 Consummate between the inland and
Hong Kong the Renminbi fund circulation
pipeline
For Hong Kong Bond Market

Actively develop HK government bond

Develop RMB bond market
For Hong Kong Stock Market


Lower the restriction for the company
switching from the Growth Enterprise
Market to the Main Board
Be co-operative, no competitive
MC
Questions
Question 1
Which of the followings is not the one of the
banking system in HK?
A. Licensed bank
B. Full bank
C. Restricted license bank
D. Deposit-taking company
Question 2
How many listed companies in the Main
Board until November 2005?
A. 900
B. 912
C. 922
D. 932
Question 3
Which of the following is NOT the issued
bond in Hong Kong?
A. Government bond
B. Corporate bonds
C. Asian dollar bond
D. Supranational Bonds
Group Members
Wong Ka Tat, Keith
023081
Kwok Wai Yi, Elle
023091
Chan Hui Chi, Tracy
023092
Tse Ching Ching, Michelle
023099
Wong Ka Lee, Carrie
023105
Lam Ching Man, Joey
023107
Chan Kin Chung, Kenneth
023109