ENG-2013 — Page 106

Statistics on Als

Als

Of which:

LBs

RLBS

DTCs

Local branches of Als

Total deposits ($ billion)

Total loans and advances ($ billion)

Total assets ($ billion)

4

Financial and Monetary Affairs

2011

2012

2013

198

200

201

152

155

156

20

21

21

26

24

24

1,422

1,404

1,384

7,591.3

8,296.4

9,178

5,080.7

5,566.8

6,457.4

13,741.9

14,858.7

16,943.5

The HKMA has always been vigilant towards Als' property mortgage business, which constitutes a significant portion of their lending portfolios. Against this background, the HKMA introduced in February the sixth round of macroprudential measures to strengthen the resilience of the banking sector against a severe adjustment in property prices. These measures included increasing the interest rate hike assumption for stress testing borrowers' repayment ability, lowering the applicable loan-to-value ratio limits for non-residential property mortgages and introducing a 15 per cent risk weight floor for all new residential mortgage loans granted by banks using the Internal Ratings-Based Approach.

Securities and Futures Sector

Main Features

The securities market in Hong Kong is operated by the SEHK and the futures market by the Hong Kong Futures Exchange Limited, both being wholly owned subsidiaries of the HKEX. At the end of 2013, there were 1,643 companies listed on the Main Board and the Growth Enterprises Market (GEM) of the SEHK with a total market capitalisation of about $24 trillion. With improved financial market conditions, total equity funds raised increased 24 per cent in 2013 to $379 billion during the year, while total turnover of the securities market increased by 14.8 per cent, to $15,265 billion, with 34,439.7 billion shares traded.

In 2013, 16 new ETFs were authorised and the total number of ETFs listed on the SEHK increased to 116, offering a wide range of investment exposures to world, regional and Mainland indices and commodities for investors. Issuance of ETFs with dual HKD and RMB trading counters also increased significantly, with nine such funds raising a total of HK$6.55 billion during 2013, tracking a variety of onshore equity and bond indices as well as commodities. According to the HKEX, turnover of ETFs reached $903.1 billion.

Since October 2011, 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.

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