2005 Interim Results Solid Performance From Focused Strategies

1
2005 Interim Results Solid Performance From
Focused Strategies Paul M Y Chow Chief
Executive, HKEx 17 August 2005
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Market Performance Key Market Statistics
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Stronger Performance From Higher Income and
Stable Costs
4
Record Half-year Results Built on Focused
Strategies
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Higher Income From Most Activities
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2005 H1 Investment Income
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Cost Control Produced Stable Cost Base
8
Second Quarter vs First Quarter
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Future Initiatives Building a Quality Market

• Enhance Listing Regulation

• Publish in 2005 H2 the consultation conclusions
  and recommended rule changes on the new structure
  for listing decision-making
• Develop proposals for the comprehensive review of
  GEM
• Solicit market comments on the suggested
  transitional arrangements for the proposed
  publication of a notification announcement in
  newspapers instead of a full announcement
  implementation is subject to system and
  operational readiness and approval of rule
  changes
• Prepare for rule amendments upon the Governments
  conclusions on giving statutory backing to major
  listing requirements

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Future Initiatives Building a Quality Market

• Strengthen Market Infrastructure

• Complete capacity upgrade of AMS/3 in 2005 Q4 and
  implement capacity planning for HKATS, DCASS and
  PRS for the derivatives market by the end of 2005
• Migrate HKATS/DCASS/PRS circuits to the SDNet in
  October 2005 as part of the network consolidation
  project that began early this year
• Complete consolidation of AMS/3 satellite systems
  and redevelopment of derivative market
  surveillance and risk management (phase 1)
  systems
• Replace AMS/3 off-floor terminals by end of 2005
• Upgrade capacity and enhance disaster recovery
  arrangements for the HKEx website
• Dematerialise physical scrip in CCASS Depository
  in 2006 subject to enactment of the enabling
  legislation

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Future Initiatives Building a Quality Market

• Service Market Users

• Discuss further with the SFC the introduction of
  Callable Bull/Bear Contracts
• Solicit market views on the introduction of more
  futures and options
• Further improve the CCASS nominee services in
  early 2006
• Implement the modified collateral policy of the
  two derivatives clearing houses, simplify their
  Participantship structure and harmonise their
  capital requirements
• Collect data for market impact analysis of the
  narrowing of minimum trading spreads for shares
  above 30

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2005 Interim Results Briefing

• Thank you