82 | Financial and Monetary Affairs
The SFC, the HKMA and a number of banks reached an agreement in relation to the repurchase of Lehman Brothers Minibonds from eligible customers in July 2009.
In 2009, the HKMA continued to deploy a large amount of resources to investigate complaints concerning Lehman Brothers-related financial products. Taking into account the cases that had been dealt with through the repurchase agreements reached among the SFC, the HKMA and the banks in 2009, the HKMA is expected substantially to complete all the cases by end of March 2010.
Assisted by the HKMA, the Hong Kong Deposit Protection Board (HKDPB) completed a two-phase review of the Deposit Protection Scheme and the public consultations on the recommendations arising from the review. The Government, in collaboration with the HKDPB, started drafting legislative amendments for effecting the recommendations and it aims to implement them upon the expiry of the full deposit guarantee which is scheduled to expire at the end of 2010.
Securities and Futures Sector
Main Features
The securities market in Hong Kong is operated by the SEHK and futures market, the Hong Kong Futures Exchange Limited (HKFE), both being wholly owned subsidiaries of the HKEX.
By the end of 2009, there were 1 319 companies listed on the Main Board and the Growth Enterprises Market (GEM) of the SEHK with a total market capitalisation. of about $17,874 billion, raising an aggregate of $642.1 billion within the year. The total turnover of the securities market amounted to $15,515 billion.
The structured product market continued to expand in 2009. At the end of December 2009, Hong Kong was the second largest market of ETFs in Asia in terms of both turnover and market capitalisation. During the year, 19 new ETFs were authorised, increasing the total number of ETFs listed on the SEHK to 43, offering a wide range of investment exposures to world, regional and Mainland indices and commodities for investors. Turnover of ETFs reached a record high of $499.7 billion compared with the previous record of $411.1 billion set in 2008. The SFC entered into a mutual recognition arrangement with the Taiwan Financial Supervisory Commission in May 2009 to facilitate cross-listing of ETFs. So far, three Hong Kong ETFs were cross-listed in Taiwan and one Taiwan ETF was cross-listed in Hong Kong.
The number of newly listed Callable Bull/Bear Contracts (CBBCs) set a new record which increased to 8 072 in 2009 from 4 231 in 2008. At the end of 2009, there were 1 692 CBBCs listed in Hong Kong. Turnover of CBBCs increased from $1,039.6 billion in 2008 to $1,676.1 billion in 2009. There were a total of 3 367 derivative warrants listed on the securities market at the end of 2009. Turnover of
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