Hong Kong Market Report Asia Securities Forum Jeffrey Chan Hong Kong Securities Association
ECONOMIC PERFORMANCE 2
Key Economic Indicators 2011 2012 Q2 GDP (yoy, %) 4.9 1.5 2.9 1.8 CPI (yoy, %) 5.3 4.1 4.3 3.6 Unemployment rate (%) 3.4 3.3 3.3 3.2 Foreign reserve (US$ billion) 285.4 317.3 311.2 320.9 Balance of Payments (US$ billion) 11.13 24.22 7.42 n/a Source: Census and Statistics Department, the HKSAR Government 3
HK$ million Percentage Change Year-on-year GDP Growth 570,000 560,000 550,000 561,064 3.50 3.00 540,000 530,000 520,000 532,056 518,089 2.50 2.00 510,000 500,000 498,474 507,465 1.50 490,000 1.00 480,000 470,000 0.50 460,000 Q2 Q3 Q4 Q1 Q2 Gross Domestic Product (GDP) by expenditure component-in chained (2012) dollars Percentage change in real terms of quarterly Gross Domestic Product - Source: Census and Statistics Department, the HKSAR Government In chained (2012) dollars 4
Composite Consumer Price Index Year-on-year Rates of Change in the Consumer Price Index +8.00 +7.00 +6.00 +5.00 +4.00 +3.00 +2.00 +1.00 +0.00 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Source: Census and Statistics Department, the HKSAR Government 5
Rates Hong Kong Dollar Interest Settlement Rates 0.6 0.5 0.4 0.3 0.2 0.1 0 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 1 month 2 month 3 month Source: Census and Statistics Department, the HKSAR Government 6
SECURITIES MARKETS 7
Key Statistics of Securities Listed on SEHK 2011 2012 (June) Number of listed companies 1,496 1,547 1,643 1,689 Total market capitalization (HK$Bil) 17,537 21,950 24,042 23,944 Number of listed securities 6,723 6,903 8,522 9,265 Number of equity warrants 15 11 8 5 Number of derivatives warrants 4,027 3,747 4,715 5,054 Number of Callable Bull/Bear Contracts 901 1,214 1,620 1,846 Number of mutual funds 88 111 129 136 Number of debt securities 169 269 403 531 Source: HKEx 8
HK$ billion Total Fund Raised-Equity Capital Market 1,000.00 900.00 858.72 800.00 700.00 600.00 500.00 400.00 300.00 281.80 301.71 524.54 590.85 427.25 642.12 490.39 305.36 378.86 200.00 100.00 0.00 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: HKEx 9
HK$ Billion Number of IPOs and Fund Raised 500.00 450.00 400.00 84 101 449.48 89 102 110 90 350.00 300.00 250.00 70 67 333.85 62 292.44 69 248.23 259.79 62 70 50 200.00 150.00 100.00 50.00 97.16 165.65 65.98 35 90.04 168.96 30 10 0.00 2004 2005 2006 2007 2008 2009 2010 2011 2012-10 Fund Raised by IPO (HK$bil) Number of IPOs Source: HKEx 10
Global IPO League Table By Equity Funds Raised NYSE Euronext 46.58 HKEx LSE Nasdaq OMX 18.14 20.15 21.77 JPX (TKY) Australia BM&FBOVESPA 8.43 10.15 9.8 BMV SGX Thailand 5.24 5.17 5.09 0 5 10 15 20 25 30 35 40 45 50 US$ Billion Source: HKEx 11
Movements of Hang Seng Index 12 Source: HKEx 20,000 20,500 21,000 21,500 22,000 22,500 23,000 23,500 24,000 24,500 25,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
HK$ Million contracts Trading Statistics 140,000 700,000 120,000 600,000 100,000 500,000 80,000 400,000 60,000 300,000 40,000 200,000 20,000 100,000 0 Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 0 Equity Market Average Daily Turnover By Value ($ mil) Futures and Options Market Turnover by Contract Source: HKEx 13
MAJOR MARKET DEVELOPMENTS 14
RMB billion Renminbi deposits in Hong Kong 1,000 900 800 860.472 925.914 700 600 627.302 602.996 500 400 300 314.938 200 100 0 12.127 22.585 23.403 33.4 26.061 62.718 2004 2005 2006 2007 2008 2009 2010 2011 2012 Q2 15
Clearing Link Southbound Shanghai Hong Kong Stock Connect ChinaClear SSE SSE Members/ ChinaClear Participants Mainland investors* A Shares Eligible Shares SSE Subsidiary Order Routing Order Routing SEHK Subsidiary Mainland Hong Kong Clearing Link Eligible Shares Hong Kong Shares Northbound HK & Overseas investors EPs/CPs SEHK HKSCC
Eligible Securities Northbound: SSE Securities Southbound: SEHK Securities Index Constituent Stocks SSE180 SSE380 HS LargeCap HS MidCap A+H SSE-SEHK A+H SSE-SEHK A+H Excluding Shares under risk alert board Shares that are not traded in RMB A+H on other Mainland exchange Shares that are not traded in HKD H Share with corresponding SSE A Share under risk alert board Total No of Stocks* 568 266 * No. of stocks as of 10 April # For any SSE listed shares not accepted as an eligible SSE listed shares upon launch due to its being under risk alert board, if it is subsequently removed from the risk alert board, it will be accepted as an SSE listed shares if it falls under any of the selection criteria
Investor Eligibility Northbound All Hong Kong and overseas institutional investors All Hong Kong and overseas individual investors Southbound All Mainland institutional investors Qualified individual investors (with minimum securities and cash asset value of RMB500,000) * Except for Investor Participants who should maintain their A shares with their brokers or 18
Participant Eligibility Northbound All SEHK Participants All HKSCC Participants Southbound All SSE Members All ChinaClear Participants 19
Quotas Southbound Trading SEHK Securities Southbound Trading SEHK Securities Maximum Aggregate Quota RMB 300 billion RMB 250 billion Daily Quota RMB 13 billion RMB 10.5 billion 20
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