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Financial and Monetary Affairs
Stock Exchange of Hong Kong Limited (SEHK), representing a wide range of industries from finance and property to resources and telecommunications. In 2015, the SEHK ranked first worldwide in terms of initial public offering (IPO) equity funds raised, at $263 billion. In addition to new share issues, another $853 billion was raised on the secondary market, ranked third globally. Daily turnover reached a record high of $105.6 billion, a 52 per cent increase compared to 2014. Moreover, the turnover of securitised derivatives of the Hong Kong Exchanges and Clearing Limited (HKEX) has ranked first in the world since 2007.
At the end of 2015, 951 Mainland enterprises were listed on the SEHK, raising $5.1 trillion from the Hong Kong market since 1993. Hong Kong is also a listing destination for international companies. Funds raised by international and Mainland companies represented 94 per cent of IPO equity funds raised in 2015.
The Hong Kong Futures Exchange Limited (HKFE) operates a futures market. Total turnover of derivatives contracts in 2015 was 190 million, the highest ever and an increase of 33.3 per cent from 2014, largely driven by strong trading in stock options and index futures and options. Open interest at the year end was 7.3 million contracts.
As an international and open market, Hong Kong attracts many intermediaries from other markets to set up companies locally and most international brokerages have branches in the city. At the end of 2015, 27.2 per cent of the 515 SEHK trading participants were from the Mainland or overseas markets, and 50.3 per cent of the 179 HKFE trading participants were from those markets.
The HKEX operates four clearing houses, namely, Hong Kong Securities Clearing Company Limited, HKFE Clearing Corporation Limited (HKCC), SEHK Options Clearing House Limited and OTC Clearing Hong Kong Limited, providing integrated clearing, settlement, depository and nominee services for its participants and members.
Chart 1
HK$ Billion
Market Capitalisation of Stock Market
30,000
25,000
25,072
20,000
24,684
24,043
21,950
15,000
17,537
10,000
5,000
0
2011
2012
2013
Year
2014
2015
58
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