The BRICS Securities and Derivatives Markets - Hong Kong ...

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Funds raised (FR) by NLCsNo. of newly listed companies (NLC)The BRICS Securities and Derivatives MarketsFigure 5-3 shows the new listing activities on the markets. SZSE, which offers a listingplatform for smaller companies, has attracted the most number of listings since 2007. Fundsraised by newly listed companies on HKEx has been the highest among the three exchangessince 2009.Figure 5-3.Number of and funds raised by newly listed companies (NLC) onSHSE, SZSE and HKEx (2002 - 2011)Number of and funds raised by newly listed companies on SHSE, SZSE & HKEx(2002 - 2011)US$bn703213506060.357.83005042.945.52432504037.52003032.028.728.733.51502010010118.41018915.1907116.162 846910.78.5 9.2525.9352.14.4392526136 92002 2003 2004 2005 2006 2007 2008 2009 2010 2011SHSE FR by NLC SZSE FR by NLC HKEx FR by NLCSHSE NLC SZSE NLC HKEx NLC100500Source: Monthly statistics of the respective exchanges.5.2 Financial derivatives marketHKEx, a member of the BRICS Exchange Alliance, offers trading in various products,comprising equity index futures and options, single-stock futures and options, and otherproducts 12 on its derivatives market. In the Mainland, CFFEX is the only exchangeoffering financial derivatives. The only product currently available for trading is the CSI300Index futures, which started trading since 16 April 2010. In February 2012, CFFEXcommenced simulated trading in government bond futures which has been suspended sinceMay 1995 after serious market malpractices. In 2011, the average daily contract volume onHKEx and CFFEX was 572,275 contracts and 206,606 contracts respectively.Figure 5-4 shows the trading composition by product type on the two exchanges.Derivatives trading on HKEx in terms of number of contracts is dominated by optionsproducts, mainly stock options (53% in 2011). Equity index futures contributed 36% —16% by Hang Seng Index futures standard contracts, the cross-listed product in the BRICSExchange Alliance. Figure 5-5 shows the monthly trading volume of this contract on HKExover the past decade. The average daily trading volume for the product was 94,036 contractsin 2011, 4 times that ten years ago.12Other products are interest rate futures, fixed income futures and gold futures.Their volumes are minimal.- 22 - Research & Corporate Development, HKEx31 December 2012
HSI daily closing (points)Trading volume (mil contracts)The BRICS Securities and Derivatives MarketsFigure Trading 5-4. Trading composition composition by derivatives by derivatives product product type on type CFFEX on CFFEX and HKEx and HKEx(No. of of contracts) (2011)74.3m(53%)50.4m(100%)50.3 m(36%)ContractsHKEx 140,493,472CFFEX 50,411,86015.4 m(11%)0.4(0%)Equity index futures Equity index options Single-stock futures Single-stock optionsSource: Annual statistics of CFFEX, HKEx Fact Book 2011.Figure 5-5. Hang Seng Index (HSI) daily closing and monthly trading volumeof HSI futures on HKEx (2002 - 2011)Hang Seng Index (HSI) daily closing and monthly trading volume of HSI futures (2002 - 2011)3500030000HSI futures monthly volumeHSI daily closing31638.22 (2007/10/30)872500018434.39 (2011/12/30)62000051500011350.85 (2002/01/02)11015.84 (2008/10/27)431000050008409.01(2003/04/25)2102002/01 2003/01 2004/01 2005/01 2006/01 2007/01 2008/01 2009/01 2010/01 2011/01Year/month0Sources: Reuters and HKEx Fact Book, 2002-2011Source: Reuters and HKEx Fact Books 2002-2011.- 23 - Research & Corporate Development, HKEx31 December 2012
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