4
Financial and Monetary Affairs
Securities and Derivatives Market
The city's stock market capitalisation totalled about $34 trillion as at end-2017, seventh in the world and third in Asia. At the end of the year, 2,118 public companies were listed on the Stock Exchange of Hong Kong Limited (SEHK), representing a wide range of industries from finance and property to consumer goods, information technology and telecommunications. The SEHK has ranked first for five out of the past nine years since 2009 in terms of equity funds raised via initial public offerings (IPOs). In 2017, $128 billion was raised through IPOs. In addition to new share issues, another $452 billion was raised on the secondary market. At the Hong Kong Exchanges and Clearing Limited (HKEX), the turnover of securitised derivatives has ranked first in the world since 2007.
At the end of 2017, 1,051 Mainland enterprises were listed on the SEHK, raising $5.8 trillion from the Hong Kong market since 1993. Hong Kong is also a listing destination for international companies. Funds raised by international and Mainland companies represented 77 per cent of IPO equity funds raised in 2017.
The Hong Kong Futures Exchange Limited (HKFE) operates a futures market. Total turnover of derivatives contracts in 2017 was 215 million, the highest ever. Open interest at the year end was 11.2 million contracts.
As an international and open market, Hong Kong attracts many intermediaries from other markets to set up companies locally and most international brokerages have branches in the city. At the year end, 24.4 per cent of the 622 SEHK trading participants and 50.5 per cent of the 186 HKFE trading participants were from the Mainland or overseas markets.
The HKEX operates four clearing houses: Hong Kong Securities Clearing Company Limited, HKFE Clearing Corporation Limited, SEHK Options Clearing House Limited and OTC Clearing Hong Kong Limited. These provide integrated clearing, settlement, depository and nominee services for its participants and members.
Chart 1
Stock Market Capitalisation
35,000
30,000
HK$ Billion
25,000
25,072
20,000
24,043
24,684
24,761
15,000
10,000
5,000
33,999
0
2013
2014
2015
2016
2017
Year
55
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