4
Financial and Monetary Affairs
Securities and Derivatives Market
The city's stock market capitalisation totalled about $24.8 trillion as at end-2016, eighth in the world and fourth in Asia. At the end of the year, 1,973 public companies were listed on the Stock Exchange of Hong Kong Limited (SEHK), representing a wide range of industries from finance and property to consumer goods, information technology and telecommunications. The SEHK ranked first worldwide in 2016 for the second consecutive year in terms of equity funds raised via initial public offerings (IPOs), raising $195 billion notwithstanding the challenging global financial conditions. In addition to new share issues, another $294 billion was raised on the secondary market. At the Hong Kong Exchanges and Clearing Limited (HKEX), the turnover of securitised derivatives has ranked first in the world since 2007.
At the end of 2016, 1,002 Mainland enterprises were listed on the SEHK, raising $5.4 trillion from the Hong Kong market since 1993. Hong Kong is also a listing destination for international companies. Funds raised by international and Mainland companies represented 95 per cent of IPO equity funds raised in 2016.
The Hong Kong Futures Exchange Limited (HKFE) operates a futures market. Total turnover of derivatives contracts in 2016 was 188 million, the second highest ever. Open interest at the year end was 9.3 million contracts.
As an international and open market, Hong Kong attracts many intermediaries from other markets to set up companies locally and most international brokerages have branches in the city. At the end of 2016, 26.3 per cent of the 556 SEHK trading participants, and 48.9 per cent of the 180 HKFE trading participants, were from the Mainland or overseas markets.
The HKEX operates four clearing houses: Hong Kong Securities Clearing Company Limited, HKFE Clearing Corporation Limited, SEHK Options Clearing House Limited and OTC Clearing Hong Kong Limited. These provide integrated clearing, settlement, depository and nominee services for its participants and members.
Chart 1
Stock Market Capitalisation
30,000
25,000
25,072
HK$ Billion
20,000
24,684
24,043
24,761
21,950
15,000
10,000
5,000
0
2012
2013
2014
Year
2015
2016
57