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

Capital raised (US$m)No. of newly listed companiesThe BRICS Securities and Derivatives MarketsFigure 6-2 shows key statistics on the JSE’s primary market activities in the same period.During this period, there were not many newly listed companies — the largest number oflistings, 62, was observed in 2007 before the global financial crisis. Alongside, equitycapital raised through means that require publication of a prospectus (including IPOs) wasrarely recorded — the biggest amount was recorded in 2003 (17% of total capital raised).Figure 6-2. Equity capital raised and number of newly listed companies on JSE (2002 – 2011)20,000Equity capital raised and number of newly listed companies on JSE (2002 - 2011)Capital raised via prospectusCapital raised via other meansNo of newly listed companies[18,268][ ] : Total capital raised16015,000[14,528]120[11,988][12,953][12,405][12,222][10,844]10,00080[7,424]62[8,200]5,000[3,395]9 817 1937231014 164002002 2003 2004 2005 2006 2007 2008 2009 2010 2011Source: JSE monthly statisticsSource: JSE monthly statistics06.3 Interest rate marketVarious types of cash debt instruments, including vanillas, commercial papers, consumer priceindex (CPI)-linked instruments, credit-linked notes and equity structured notes, are availableon the JSE’s interest rate market. Compared to the equity market, the bond market is muchmore active in terms of turnover — constituting 87% of total market turnover value in 2011(see Figure 6-3) — despite a much smaller market capitalisation (some 20% that of equities).As at the end of September 2011 (the latest available statistics), there were 1,137 bonds listedon the JSE, with a total market capitalisation of ZAR1,414 billion (US$176 billion). Themajority of these bonds were issued by corporates (mostly by banks) but in value terms it wasdominated by government and public organisation issues (see Figure 6-4). In 2011, therewere 733 newly issued bonds, with a nominal value of ZAR378 billion (US$47 billion).- 26 - Research & Corporate Development, HKEx31 December 2012