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Financial and Monetary Affairs
Securities and Futures Sector
Main Features
The securities market in Hong Kong is operated by the SEHK and the futures market by the HKFE, both being wholly owned subsidiaries of the HKEx. At the end of 2012, there were 1,547 companies listed on the Main Board and the Growth Enterprises Market (GEM) of the SEHK with a total market capitalisation of about $22 trillion. Due to continued turmoil in the external environment, total equity funds raised fell 37.7 per cent to $305.4 billion during the year, while total turnover of the securities market declined by 22.5 per cent, to $13,301 billion, with 33,967.6 billion shares traded.
In 2012, 35 new Exchange Traded Funds (ETFs) were authorised and the total number of ETFs listed on the SEHK increased to 100, offering a wide range of investment exposures to world, regional and Mainland indices and commodities for investors. According to the HKEX, turnover of ETFs reached $522.1 billion.
Managers of synthetic ETFs primarily regulated by the SFC were required to achieve and maintain at least 100 per cent collateralisation to minimise the risk that could arise from the use of financial derivatives by synthetic ETFS in replicating index performance.
Statistics on securities market (Main Board and GEM) ($ billion)
2010
2011
2012
Number of listed companies (year-end)
1,413
1,496
1,547
Total market capitalisation (year-end)
21,077
17,537
21,950
Total equity funds raised
859
490
305
Total securities market turnover
17,210
17,154
13,301
Total number of shares traded (billion)
34,991
39,907
33,968
Number of derivative warrants (DWs)
5,148
4,027
3,747
listed (year-end)
Turnover of DWs
2,692
2,630
1,646
Number of Callable Bull/Bear Contracts (CBBCs)
1,064
901
1,214
listed (year-end)
Turnover of CBBCs
Number of ETFs listed (year-end)
Turnover of ETFs
1,455
1,852
1,533
69
77
100
604
545
522
In the derivatives market, around 120 million futures and options contracts were traded in 2012, or 17 per cent fewer than in 2011. Trading of major derivatives products included Hang Seng
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