ENG-2012 — Page 104

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Financial and Monetary Affairs

Securities and Futures Sector

Main Features

The securities market in Hong Kong is operated by the SEHK and the futures market by the HKFE, both being wholly owned subsidiaries of the HKEx. At the end of 2012, there were 1,547 companies listed on the Main Board and the Growth Enterprises Market (GEM) of the SEHK with a total market capitalisation of about $22 trillion. Due to continued turmoil in the external environment, total equity funds raised fell 37.7 per cent to $305.4 billion during the year, while total turnover of the securities market declined by 22.5 per cent, to $13,301 billion, with 33,967.6 billion shares traded.

In 2012, 35 new Exchange Traded Funds (ETFs) were authorised and the total number of ETFs listed on the SEHK increased to 100, offering a wide range of investment exposures to world, regional and Mainland indices and commodities for investors. According to the HKEX, turnover of ETFs reached $522.1 billion.

Managers of synthetic ETFs primarily regulated by the SFC were required to achieve and maintain at least 100 per cent collateralisation to minimise the risk that could arise from the use of financial derivatives by synthetic ETFS in replicating index performance.

Statistics on securities market (Main Board and GEM) ($ billion)

2010

2011

2012

Number of listed companies (year-end)

1,413

1,496

1,547

Total market capitalisation (year-end)

21,077

17,537

21,950

Total equity funds raised

859

490

305

Total securities market turnover

17,210

17,154

13,301

Total number of shares traded (billion)

34,991

39,907

33,968

Number of derivative warrants (DWs)

5,148

4,027

3,747

listed (year-end)

Turnover of DWs

2,692

2,630

1,646

Number of Callable Bull/Bear Contracts (CBBCs)

1,064

901

1,214

listed (year-end)

Turnover of CBBCs

Number of ETFs listed (year-end)

Turnover of ETFs

1,455

1,852

1,533

69

77

100

604

545

522

In the derivatives market, around 120 million futures and options contracts were traded in 2012, or 17 per cent fewer than in 2011. Trading of major derivatives products included Hang Seng

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