ENG-2009 — Page 117

Financial and Monetary Affairs 69

With a total market capitalisation of about $17,874 billion at year's end, the Hong Kong stock market ranked seventh in the world and third in Asia. The daily turnover averaged $62.3 billion in 2009. At year's end, 1 319 public companies were listed on the Stock Exchange of Hong Kong (SEHK). The 68 newly listed companies on the Main Board raised $247.9 billion from IPOs.

In 2009, Hong Kong ranked first worldwide in terms of IPO funds raised. Besides new share issues, $393.9 billion were raised on the secondary market.

The Hong Kong stock market is an important fund-raising platform for Mainland enterprises. At year's end, there were 524 Mainland enterprises listed on the SEHK. In 2009, equity funds raised by Mainland enterprises2 amounted to $346 billion, which was 55 per cent of the total equity funds raised through the SEHK during the year. About $201 billion was raised in new listings of Mainland enterprises in Hong Kong, accounting for 83 per cent of the total equity funds raised in IPOs on the SEHK.

Overseas intermediaries were increasingly interested in setting up business operations in Hong Kong. The number of Stock Exchange Participants3 (SEPs) increased from 449 at the end of 2008 to 463 at the end of 2009. The futures market also saw an increase in the number of Futures Exchange Participants (FEPs), from 148 at the end of 2008 to 167 at the end of 2009. Among the SEPs and FEPs, 156 and 74 respectively were owned by non-Hong Kong interests. In 2009, 19 SEPs and 22 FEPs were newly admitted, including those from France, India, Korea, Switzerland, the Mainland, the Netherlands, the United Kingdom and the United States, and Taiwan.

The 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's end, 764 companies were licensed or registered to carry out asset management business, representing an increase of 7 per cent from a year earlier. In addition to the Securities and Futures Commission (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 bars4. Prices closely follow those in the other major gold markets in London, Zurich and New York.

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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.