ENG-2007 — Page 128

88 Financial and Monetary Affairs

At year-end, 439 Mainland enterprises were listed on Hong Kong's stock exchange, accounting for 35 per cent of the total number of listed companies; the market capitalisation of Mainland enterprises accounted for about 58 per cent of total market capitalisation; and the turnover of Mainland enterprises accounted for about 69 per cent of the daily turnover on the exchange.

To further facilitate the listing of overseas companies in Hong Kong, the SFC and HKEX published a joint policy statement regarding the listing of overseas companies in March 2007. The statement sought to clarify the listing rules requirements governing the listing of companies incorporated outside the expressly recognised jurisdictions and provide guidance for overseas companies seeking a primary listing in

Hong Kong.

HKEX has been stepping up efforts in promoting Hong Kong as a preferred listing venue, and establishing cooperation framework with other jurisdictions. These include signing of memoranda of understanding (MOUs) with the Abu Dhabi Securities Market and the Moscow Interbank Currency Exchange in March 2007 and July 2007 respectively to establish cooperation in areas such as information exchange. In December 2007, HKEx signed MOUS with the Ho Chi Minh Stock Exchange and the Mongolian Stock Exchange.

There are also ongoing marketing initiatives and visits to the Mainland and other jurisdictions, including Vietnam, Thailand, Malaysia, Kazakhstan, Russia and Taiwan, to promote Hong Kong's status as a premier capital formation centre.

Promoting Asset Management Business

The saving rates in Asia are high compared to other regions. Located at the heart of Asia, Hong Kong is well positioned to further develop as an international asset management centre. According to the Fund Management Activities Survey 2006 released by the SFC in July 2007, which covered licensed corporations and registered institutions, the combined fund management business had grown by 36 per cent from $4,526 billion in 2005 to $6,154 billion in 2006. Since the establishment of the SFC in 1989, the number of retail funds in Hong Kong had more than doubled from 781 to 1 973 in 2006, with the value jumping 25-fold from $283 billion to $7,100 billion. Following the introduction of the QDII Scheme by the Mainland authorities in 2006, detailed implementation rules were rolled out and the scope of investments under the QDII Scheme had also been expanded in 2007 to allow investments in overseas equities and funds. All these measures are expected to provide further impetus to the development of the asset management industry in Hong Kong (see also 'Capital Formation Centre and Global Investment Platform for the Mainland' under Financial Links between Hong Kong and the Mainland).

To provide a conducive environment for the further development of Hong Kong as Asia's asset management centre, the Government continued to lead financial services delegations to a number of cities on the Mainland and various countries to promote Hong Kong's financial services and Hong Kong's strengths as a major asset management centre in Asia. The SFC continued to review relevant codes and guidelines and facilitate the launch of new investment products and international