FINANCIAL AND MONETARY AFFAIRS
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(H shares), 92 were quoted on the SEHK. The daily turnover of these H-shares and red chips accounted for 38.7 per cent of the total market turnover. In 2003, about $50.4 billion was raised in new listings of H-shares and red chips in Hong Kong, accounting for some 85 per cent of the total funds raised in initial public offerings (IPO) on the SEHK. The market capitalisation of H-shares and red chips accounted for about 29 per cent of the total market capitalisation. During 2003, the H-share index surged by 152 per cent. It is expected that Mainland issuers will continue to be a major growth driver of the securities market of Hong Kong in the future.
The average daily turnover of Hang Seng Index Futures and Mini-HSI Futures traded on the Hong Kong Futures Exchange (HKFE) increased from 19 602 contracts and 4 522 contracts in 2002 to 27 588 contracts and 5 064 contracts in 2003, respectively, representing increases of 41 per cent and 12 per cent. The average daily turnover of Hang Seng Index Options also increased to 8 596 contracts in 2003, compared with 4 369 in 2002, representing an increase of 97 per cent. The average daily turnover of Mini-HSI Options was 130 contracts, whereas that of H-share Index Futures launched in December 2003 reached 3 196 contracts. Apart from Index futures and options, the HKFE also traded 33 stock futures contracts with an average daily turnover of 76 contracts in 2003. As regards stock options, contracts in respect of a total of 34 stocks were traded in the market by year-end. The average daily turnover of stock options was 17 122 contracts in 2003.
The Hong Kong fund management industry is characterised by its strong international flavour, both in terms of the presence of global fund managers and authorised funds. In a survey conducted by the Securities and Futures Commission (SFC) in 2003, there were 192 companies that provided fund management or advisory services and that derived gross operating income from such activities at the end of 2002, an increase of 12 per cent from 172 a year earlier. Total assets under management amounted to $1,491 billion (US$191.2 billion)2 as at December 31, 2002, representing a growth of 0.4 per cent over the previous year.
The number of authorised unit trusts and mutual funds was 1 862 at the end of 2003 (excluding Mandatory Provident Fund-related unit trusts).
Hong Kong operates one of the most active physical gold markets in the world. Spot gold can be traded through two closely related yet independent markets in the city the Chinese Gold and Silver Exchange Society and the Loco-London gold market. The society, established in 1910, provides trading of both tael bars and kilo bars in Hong Kong dollars3. Prices closely follow those in the other major gold markets in London, Zurich and New York. Loco-London gold quotation is made in US dollars per troy ounce of gold.
Hong Kong continues to be one of the most open insurance centres in the world. Among the 188 authorised insurers at year-end, 94 were insurers from 22 overseas countries or the Mainland. Twelve of the world's top 20 insurers are authorised to carry out insurance business in Hong Kong either directly or through a group company. There are 23 professional reinsurers, including most of the top reinsurers in the world. Gross premium income in 2002 was $89.0 billion, approximately 7.1 per cent of Hong Kong's Gross Domestic Product (GDP).
2
Excluding assets under pure investment advice.
3 Tael bars are of 99 per cent fineness and weighted in taels (one tael equals approximately 1.20337 troy ounces).
Kilo bars are of 999.9 parts per thousand fineness and weighted in kilograms.