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Financial and Monetary Affairs
initial public offering (IPO) funds raised. In addition to new share issues, another $210 billion was raised on the secondary market, also ranked second globally.
At the end of 2013, some 797 Mainland enterprises' were listed on the SEHK, raising $3.7 trillion from the Hong Kong market since 1993. Hong Kong is also an increasingly attractive listing destination for international companies. Funds raised by international and Mainland companies. represented 95 per cent of IPO equity funds raised in 2013.
The Hong Kong Futures Exchange Limited (HKFE) operates a futures market in Hong Kong. Total turnover of derivatives contracts in 2013 was 130,028,864, the second highest ever and an increase of about 9 per cent from 2012, largely driven by strong trading in stock options and index futures and options. Open interest at year-end was 6,230,082 contracts, up from 5,317,952 at the previous year-end. In April 2013, After-hours Futures Trading (AHFT) was introduced with the inclusion of Hang Seng Index and H-shares Index futures. In 2013, AHFT trading accounted for approximately 4 per cent of day session trading volume.
As an international and open market, Hong Kong attracts many intermediaries from other markets to set up companies here and most international brokerages have branches in the city. At the end of 2013, 28 per cent of the 504 SEHK trading participants were from the Mainland or other overseas markets, and 49 per cent of the 179 HKFE trading participants were from markets outside Hong Kong.
The Hong Kong Exchanges and Clearing Limited (HKEx) now operates four clearing houses. (Hong Kong Securities Clearing Company Limited, HKFE Clearing Corporation Limited, SEHK Options Clearing House Limited and OTC Clearing Hong Kong Limited), providing integrated clearing, settlement, depository and nominee services for its participants or members. Launched in November 2013, OTC Clearing Hong Kong Limited provides clearing services for inter-dealer interest rate swaps and non-deliverable forwards, and represents Hong Kong's further expansion into another new asset class.
Chart 1
Market Capitalisation of Stock Market
HK$ Billion
30,000
25,000
20,000
24,043
21,077
21,950
15,000
17,874
17,537
10,000
5,000
0
2009
2010
2011
2012
2013
Year
Mainland enterprises include H-share companies, red-chip companies and non-H share Mainland private enterprises.
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