HKEx 2002 market highlights and 2003 key projects

(As of 20 Dec)

(year-end)

(%)

64.4 bil

+ 67.34

58.56 bil

+ 68.58

5.84 bil

+ 54.97

25.72 bil

+ 102.10

21.60 bil

+ 108.19

4.12 bil

+ 70.15

38.68 bil

+ 44.23

36.96 bil

+ 45.43

1.72 bil

+ 18.60

25.9 bil

25.2 bil

+ 170.24

HK$ 1.17 bil

0.7 bil

+ 67.14

117*
^{(Record number
of new listings)}

88

+ 32.95

60*

31

57

57

HK$ 6.73 bil

8.19 bil

- 17.83

HK$ 6.55 bil

8.03 bil

- 18.43

HK$ 0.18 bil

0.16 bil

12.5

509

507

0.39

471

492

38

15

Total Volume (Contracts)

6,116,028

5,830,061

+ 4.9

4,705,181

4,400,071

+ 6.9

Record high open interest: 3,961 contracts
(19 Dec 02)

1,093,813

769,886

+ 42.1

20,698

6,945

+ 198.0

511,760**

629,491

- 18.71

4,666,091

4,718,769

- 1.1

3,637,601

4,001,014

- 9.1

5,612

-

-

133

135

- 1.5

133

135

0

0

• Consulted market on proposed Listing Rules amendments on corporate governance (Jan)
• Consulted market on proposed listing rules amendments on listing eligibility and cancellation of listing procedures (July); published a supplementary consultation paper on continuous listing eligibility and related issues (Nov)

• Announce summary of responses to the consultation on corporate governance and plans for implementation. Subsequently, amend Main Board and GEM Listing Rules relating to corporate governance
• Review market responses and amend Main Board Listing Rules relating to listing eligibility and cancellation of listing procedures
• Consult market on the new listing structure and listing process in Q1
• Consult market in Q1 on the regulation of sponsors and financial advisers

• Introduced CCASS/3 Stage-I (May) and Stage-II (Dec)
• Introduced pre-opening session and index basket orders (Mar)

  From the launch day to 13 Dec 2002

  • Average daily no. of auction orders: 9,083
  • An average of 367 Exchange Participants per day placed auction orders
  • Average daily auction trade turnover: $42 mil, representing 0.63 per cent of market turnover
  • Average daily no. of auction trades: 383
  • Average daily pre-open trade turnover: $233 mil, representing 3.51 per cent of market turnover
  • Average daily no. of pre-open trades: 169
    
    

• Consulted market on third party clearing (Jul)

• Complete introduction of CCASS/3 in Q1 with the introduction of Participant Gateway

• Consider introducing third party clearing for securities market
• Consult market on the board lots in H1
• Extend trading hours in securities and derivatives markets, subject to market readiness
• Strengthen HKATS technical and application architecture for greater reliability and security
• Explore introduction of e-broker facility to enable convenient local access to other markets
• Develop new electronic filing system and database to support new SDI regime

• Introduced derivative warrants with liquidity providers under the revised Listing Rules (Jan)

  From 1 Jan - 13 Dec 2002:

  • 632 derivative warrants were issued by 15 issuers
  • Average daily turnover: $496 mil, representing 7.6 per cent of Main Board turnover
  • No. of outstanding listed derivative warrants as at 13 Dec: 346
• Reduced listing fees for derivative warrants (April)
• In the phase II rule amendments, the Listing Rules for derivative warrants were extended to cover all structured products
  
  • Issuers listed first Equity Linked Instruments (ELI) on Stock Exchange (Aug)
  • As of 13 December, three issuers had listed 25 ELI
  • ELI average daily turnover: $3.2 million
• Introduced Dow Jones Industrial Average Futures (Mar) and Mini-HSI Options (Nov)
• Average daily turnover for Dow Jones Industrial Average Futures since launch: 42; average daily turnover for Mini-HSI Options since launch: 191 contracts

• Explore more financial products and reviewing existing products:
  • Capital protection products in the securities market
  • Interest rate swap futures
  • Cash settlement for Exchange Fund Note Futures
  • Flexible options on Hong Kong stocks and indices which allow investors to set their strike prices

Business Ventures

By entering new business areas through partnerships, HKEx reaps the benefits of broadened growth opportunities at reduced set-up costs. Partnerships also allow HKEx to maintain a compact organisation for core businesses:

• Signed statement of intent with S&P on new index series (Feb)
• Invested in BondsInAsia (Mar)
• Merged share registration businesses with Computershare's Hong Kong share registration business (Apr)
• Announced new joint outsourcing Brokers' Electronic Support Service with Wilco (May)

• Launch HKEx/S&P index series in H1

• Held large-scale listing promotion conferences in Shandong (May), Shanghai (June), Shenzhen (Oct) and Nanjing (Dec); participated in the conference organised by the Zhejiang provincial government
• Signed an agency agreement for HKEx-IS to provide Shenzhen Stock Exchange market information (Jun)

• Further develop business network and continue promotional and educational activities on the Mainland