Hong Kong Exchanges and Clearing Limited Yearend Review

1

• Hong Kong Exchanges and Clearing Limited -
  Year-end Review
• 21 December 2000

2
2000 MilestonesMarket Highlights

• (As of 15 December)
• Most funds raised HK459bil
• Main Board HK444bil
• GEM HK15bil
• Most funds raised by IPOs HK132bil
• Main Board HK117bil
• GEM HK15bil
• Most funds raised in the secondary
  market HK327bil
• Most funds raised by H-shares and red-chips
  HK343bil
• markets
• Most IPOs 84 (Main Board39 GEM45)
• Expected at year-end 90 (Main Board 43 GEM
  47)
• Most funds raised by a single IPO HK44bil by
  China Unicom Ltd
• Second highest stock market turnover HK3,079bil
• (Highest HK3,789bil in 1997)
• Record high for HSI 18,302 (28 March)

3
2000 Milestones
- Merger of securities and futures exchanges and
clearing houses - Regulatory rationalisation
handover of certain regulatory functions to
SFC - MOU on listing matters between SFC and SEHK
- Launch of Pilot Programme for trading Nasdaq
shares - Consultation paper on amendments to the
GEM Listing Rules issued
- Listing of HKEx - Announcement of Global Equity
Market alliance - Migration of HSI Futures and
Options to electronic trading - CFTC approval
for HKATS in US - Reduction of transaction levy
Recognition of GEM by the US SEC as a designated
offshore securities market
- Launch of Internet Initial Public Offering
service - First interim results report
- Launch of Mini-HSI Futures contract - Rollout
of AMS/3
- MOU with ASX on exchange of market surveillance
information - Licensing agreement for the
development of MSCI China Free Index futures and
options contracts - Contribution to the community
4
Way ForwardMarket Regulation

• Rationalisation of Main Board and GEM Listing
  Rules, and listing approval procedures
• MOU with SFC on regulatory rationalisation
• Enhanced market surveillance

5
Way ForwardMarket Infrastructure

• Complete rollout of AMS/3 functionalities
• Upgrade CCASS
• Integrate derivatives trading and clearing
  platforms

6
Way Forward Product and Services Development

• Introduce international benchmark financial
  products
• Introduce Exchange Traded Funds
• Provide central back-office support services
• Expand registrar, nominee and related services
• Enhance investor information services

7
Way ForwardChina Strategy

• Strengthen cooperation with Mainland exchanges
• Open a liaison office in Beijing in Q1
• Strengthen business network and carry out
  promotional and educational activities in China

8
Thank you