2006 Interim Results Announcement Record HalfYear Performance

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2006 Interim Results AnnouncementRecord
Half-Year Performance Challenges Ahead Hong
Kong Exchanges and Clearing Limited 16 August 2006
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Key Market Statistics
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Record Activity Levels
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Financial Highlights
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Increase in Overall Income
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Rise in Investment Income
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Costs Advance on Buoyant Property Job Markets
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Second First Quarter Comparison
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Best-Ever Half-Year Results
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Ongoing Initiatives to Strengthen Market Quality

• Formulate proposals on way forward for GEM
• Abolish mandatory requirement for paid
  announcements
• Consider accepting issuers from more overseas
  jurisdictions
• Continue discussions with regulators on position
  limit regime

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Ongoing Initiatives to Strengthen Market Quality

• Improve Investor Participant Account and Stock
  Segregated Account with Statement services
• Monitor market operations after reducing trading
  spreads for securities trading between 2 and 20
• Implement the last phase of network consolidation
  with migration of the AMS/3 network to SDNet
• Replace hardware and software of the AMS/3 Open
  Gateway and Multi-Work Station

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Looking Ahead

• Positioning ourselves as Chinas international
  exchange
• Endeavouring to accommodate needs of those
  interested in our markets
• Continuing to develop more Mainland-related
  products
• Strengthening cooperation and coordination with
  Mainland authorities

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Future Initiatives Enhancing Business

• Improve market mechanisms and procedures, reduce
  market barriers and rationalise fee structure
• Strengthen cross-market surveillance and risk
  management
• Improve listing regulation - internal efficiency
  and compliance monitoring and enforcement - and
  improve training programmes for listed issuers
• Enhance the public offering process

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• The end
• Thank you