ENG-2015 — Page 95

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Financial and Monetary Affairs

Loco London gold market. The society provides trading of both tael and kilo bars2. Prices track closely those in the major gold markets in London, Zurich and New York.

In addition to operating Hong Kong's securities and derivatives markets, the HKEx owns the London Metal Exchange (LME), the world centre for industrial metals trading and price-risk management. About 80 per cent of global non-ferrous business is conducted on the LME and its prices are used as the global benchmarks. The average daily volume for 2015 was 670,189 lots. The LME launched an in-house clearing house in London in 2014, LME Clear, to support the exchange's commodity business.

Major Initiatives

Continuous efforts were made in 2015 to enhance Hong Kong's competitiveness as an international financial centre through striking an adequate balance between regulations and promoting market development. The government continues to press ahead with various initiatives to consolidate the city's leading role as the Asia-Pacific region's asset management centre, advance financial co-operation with the Mainland, further develop offshore RMB business and enhance the functions of its funding platform. The government also encourages the use of technology to enhance operational efficiency and foster innovative modes of services in the financial services industry. At the same time, the government works closely with regulators and the industry to align with the international regulatory reform agenda to promote stability of the financial system, improve market quality and strengthen investor protection.

Enhancing Hong Kong's Competitiveness as International Financial Centre

The city will capitalise on opportunities arising from the implementation of the National 13th Five-year Plan and the Belt and Road Initiative to consolidate and enhance its position as a major platform of capital raising and financing for Mainland and overseas enterprises as well as a global hub for offshore RMB business.

The financial services industry also provides a catalyst for the growth of related sectors, such as professional and commercial services. High-quality financial services underpin Hong Kong's position as an international business hub, helping local enterprises to seize business opportunities and attracting Mainland and overseas companies to use the city as a platform for raising funds and developing regional business.

Fund-raising Centre

In 2015, the SEHK ranked first worldwide in terms of the IPO equity funds raised, at $263 billion. It attracted 138 new listings, including 14 transfers of listing from the Growth Enterprise Market to the Main Board. Apart from Mainland and Hong Kong companies, five overseas companies, from Japan, Singapore, South Korea and the United States, also listed on the SEHK. Newly listed companies are attracted by the market's liquidity and access to investors across Asia. The SEHK is working to accept more overseas jurisdictions as places of incorporation.

2

Tael bars are of 99 per cent fineness and weighted in taels. One tael equals about 1.20337 troy ounces. Kilo bars are of 999.9 parts per thousand fineness and weighted in kilograms.

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