ENG-2008 — Page 111

Financial and Monetary Affairs 67

2008, equity funds raised by Mainland enterprises1 amounted to $287.0 billion, which was 71 per cent of the total equity funds raised through the SEHK during the year. About $47.7 billion were raised in new listings of Mainland enterprises in Hong Kong, accounting for 72 per cent of the total equity funds raised in IPOs on the SEHK. The market capitalisation of Mainland enterprises accounted for 60 per cent of the SEHK's total market capitalisation at year-end. In 2008, the total annual trading turnover of Mainland enterprises accounted for 71 per cent of the total annual equity turnover of the Hong Kong stock market. It is expected that Mainland issuers will continue to be major growth drivers of the stock market in the future.

Overseas intermediaries were increasingly interested in setting up business operations in Hong Kong. The number of Stock Exchange Participants2 (SEPs) increased from 439 at the end of 2007 to 449 at the end of 2008. The futures market also saw an increase in the number of Futures Exchange Participants (FEPs), from 140 at the end of 2007 to 148 at the end of 2008. Among the SEPs and FEPs, 156 and 74 respectively were owned by non-Hong Kong interests. In 2008, 18 new SEPS were admitted, including 11 from various regions around the world; 14 new FEPs were admitted, of which 11 were from areas outside Hong Kong.

The Hong Kong asset management industry is characterised by its strong international flavour, in terms of the presence of both global fund managers and the different domiciles of authorised funds. At year-end, 716 companies were licensed or registered to carry out asset management business, representing an increase of 16 per cent from a year earlier. In addition to SFC-licensed corporations, banks and insurance companies also participate in asset management business.

Hong Kong operates one of the most active physical gold markets in the world. Spot gold can be traded through two closely related yet independent markets in the city the Chinese Gold and Silver Exchange Society and the Loco-London gold market. The Society, established in 1910, provides trading of both tael bars and kilo bars3. Prices closely follow those in the other major gold markets in London, Zurich. and New York.

Hong Kong continues to be one of the most open insurance centres in the world. Among the 175 authorised insurers at year-end, 85 were from 21 overseas countries or the Mainland. 15 of the world's top 20 insurers are authorised to conduct insurance business in Hong Kong either directly or through a group company. There are 21 professional reinsurers in Hong Kong, including most of the top reinsurers in the world. Gross premium income in 2007 was $197.3 billion.

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Mainland enterprises include H share companies, red-chip companies and non-H share Mainland private enterprises.

Corporations with the right to trade on or through the Stock Exchange and licensed under the Securities and Futures Ordinance to engage in such activity. Non-trading Stock Exchange Participants are not included.

Tael bars are of 99 per cent fineness and weighted in taels (one tael equals approximately 1.20337 troy ounces). Kilo bars are of 999.9 parts per thousand fineness and weighted in kilograms.