Financial Institutions
In Hong Kong
The Prospectus Of The
Hong Kong Stock Market
Development of Hong Kong
Stock Exchanges

The association of stockbrokers in 1891 which was
the First formally recognized stock market in Hong
Kong

The organization became the Hong Kong Stock
Exchange in 1914

The Second exchange, the Hong Kong
Stockbrokers’ Association was incorporated in 1921
and merged with the Hong Kong Stock Exchange
after World War II in 1947

The merged organization was called the Hong Kong
Stock Exchange
Tiffany

After World War, formation of Three other
exchange:
 Far East Exchange (established in 1969)
 Kam Ngan Exchange (established in 1971)
 Kowloon Exchange (established in 1972)

In 1980, the Four exchanges were merged into a
Single entity known as the Stock Exchange of
Hong Kong Ltd

The Four single exchanges ceased trading
individually on 27 March 1986 and the new
exchange commenced trading via a computerfacilitated system on 2 April 1986
Tiffany

In 1999, the Hong Kong Financial Secretary
announced significant market reforms for the
securities and futures markets

To facilitate the process of reform, the Stock
Exchange of Hong Kong Ltd and Hong Kong
Futures Exchange Ltd demutualized and, in
conjunction with the Hong Kong Securities
Clearing Company merged on 6 March 2000 to
form a New holding company, Hong Kong
Exchanges and Clearing Ltd

HKEx is now a listed campany on the SEHK
Tiffany
Stock classification
Blue chips
 Red chips
 H shares
 Others


Red chips, H shares China-aff Stocks
At 2005 206
Jason
Main Board

In 2004, the market capitalization was HK
$6,629,176.75 million.

Number of Shares:892
Jason
GEM Board

In 2004, the market capitalization was HK
$66,716.07 million.

Number of Shares:204
Jason
Market capitalization

HSBC HOLDINGS
(Main Board)
HK $1,485,758.51
million
Tom online (GEM
Board)
HK $ 8,200.9 million
Jason
Market capitalization

HSBC HOLDINGS =181 Tom online

HSBC HOLDINGS =22 Gem Board
Gem Board is relatively small
Jason
The market capitalization of
Hong Kong Stock market
 Comparison
with the past data
 Comparison
with other countries
Kenneth
Comparison with the past data
FROM
1970 –
2004
Kenneth
Comparison with the past data
The past data of the main board
 The highest day :
28/8/1998
trading value --- HK$79,002.61M
 The lowest day :
9/6/1970
trading value --- HK$6.15M

Kenneth
Comparison with the past data
The past data of the main board
 The highest whole year trading value :
2004
HK$3,948,350.84M
 The second highest whole year trading
value :
1997
HK$3,788,959.79M

Kenneth
Comparison with the past data
The securities market of Hong Kong was
growing from 1970 to 2004
 Average daily trading value :
HK$20.6M
HK$15,856.83

Kenneth
Comparison with the past data

Some main event through 1970 – 2004

Example : 1997 Asia financial crisis
- a suddenly drop of trading value ----- from HK$3,788,959.79M (1997)
(1998) HK$1,701,112.01M
Kenneth
Comparison with the past data



An increasing influence of listings of Mainland
enterprises in Hong Kong
The first Mainland enterprises listing in HK :
青島啤酒 (0168) --- 7/1993
The China factor, including China Aff Shares and
the H shares, becoming very important to the HK
market
Kenneth
Comparison with the past data






To the end of 2004
The number of Mainland enterprises listing in HK :
304
28% of the HK stock market
The total market capitalization :
over HK$2,020,500M
30% of the HK stock market
The whole year trading value :
over HK$1,665,100M
42% of the HK stock market
Occupy 8 of the Top 10 HK IPO
In the history of HK stock market, all of the Top
10 IPO was Mainland enterprises
Source : www.tdctrade.com/econforum/boc/chinese/boc050201c.htm
Kenneth
Comparison with other countries
As at end June 2005
 Hong Kong’s Stock Market ranking in Asia
is the second
 Ninth in the Worldwide ranking
 the market capitalization is US$895 billion

Kenneth
Table A - Market Capitalisation of the World's Top Stock Exchanges (As at end June 2005)
表A – 世界各大證券交易所的市值 (截至2005年6月底)
Worldwide
Ranking
世界排名
Ranking in
Asia
亞洲排名
Market Capitalisation (US$
billion)
市值 (以10億美元計)
US (NYSE)
美國 (紐約證券交
易所)
1
Japan (Tokyo)
日本 (東京)
2
US (Nasdaq)
美國 (納斯達克)
3
3,388
UK (London)
英國 (倫敦)
4
2,734
Euronext
Euronext
5
2,286
Canada (Toronto)
加拿大 (多倫多)
6
1,239
Germany
(Deutsche Börse)
德國
(證券及衍生工具
交易所)
7
1,120
Spain
西班牙
8
920
Hong Kong
香港
9
Switzerland
瑞士
10
12,865
1
2
3,394
895
798
資料來源：全球證券交易所聯會
Kenneth
Forecast

More and More
China-aff Stocks

Motive power for
the HK Stock
market
Kenneth
The influence of the
China Aff stocks
high economic growth rate of the China
 the Mainland enterprises & China Aff
shares directly benefited
Trend :
 increasing number of Mainland
enterprises applying for listing in HK
 Increasing value of market capitalization

zoe
The market capitalization
Statistics on China enterprises (H shares)(2000-2005)
Market capitalization
Year
2000
2001
2002
2003
2004
2005
HK $Billion
% of equity total
85.1
99.8
129.2
403.1
455.1
1173.3
1.78
2.57
3.63
7.35
6.67
16.68
zoe
The market capitalization
Statistics on red chips stocks (2000-2005)
Year
Market capitalization
% of equity total
HK$ Billion
2000
1203.5
25.1
2001
908.8
23.39
2002
806.4
22.66
2003
1197.7
21.67
2004
1409.3
21.26
2005
1758.9
23.32
zoe
Why was this happen?

成報 (16-11-2005)
zoe
Why was this happen?
國家外匯管理局
 今年1月及4月發布了「11號」及「29號」
通知
 規條繁雜的通知書
 令內地的紅籌股上市大減
 今年10月21日發布的「75號」通知
 使外資公司紅籌上市申請條件及程序明朗
化

zoe
Equities Funds Raised
HK$Million
Year
1993-2004
Total Equities Funds
Raised By All Stocks
1854144.53
Total Equities Funds
Raised By the China-Aff
Stocks
81019547

over 43% of the Equities Funds Raised at Main
board and the Gem board are occupied by the
China-Aff Stocks.
zoe
Funds raised by IPO
 Main
Board
 Gem
Board
Henry
Funds raised by IPO in Main Board
Year 2005 (up to 28th October 2005)

Stock
Company Name at time of listing
Code
1
2
3
4
5
6
7
8
9
10
11
12
828
"
868
"
2038
"
360
999
"
2727
"
838
483
482
2889
"
462
1088
"
王朝酒業集團有限公司
"
信義玻璃控股有限公司
"
Foxconn International Holdings
Ltd
"
新焦點汽車技術控股有限公司
I.T Limited
"
上海電氣集團股份有限公司－Ｈ
股
"
億和精密工業控股有限公司
包浩斯國際(控股)有限公司
聖馬丁國際控股有限公司
中國特鋼控股有限公司
"
福茂控股有限公司
中國神華能源股份有限公司－Ｈ
股
"
Date of
Listing
(dd/mm/yy)
Funds Raised
(HK$)
26/01/05
"
03/02/05
"
03/02/05
$356,305,520
$419,944,480
$300,000,000
$535,888,000
$1,011,981,600
(a)
(b)
(a)
(b)
(a)
"
28/2/2005
04/03/05
"
28/04/05
$2,699,242,280
$94,000,000
$296,930,400
$370,063,200
$505,396,400
(b)
(a)
(a)
(b)
(a)
"
11/05/05
12/05/05
12/05/05
19/05/05
"
10/06/05
15/06/05
$4,548,554,000
$143,000,000
$130,812,500
$144,376,560
$53,280,000
$213,120,000
$66,000,000
$1,723,218,750
(b)
(a)
(a)
(a)
(a)
(b)
(a)
(a)
"
$23,766,150,000
(b)
Henry
Funds raised by IPO in Main Board
13
14
15
16
17
464
3328
"
3300
"
2028
1919
20
21
22
"
416
"
2000
"
3311
3333
2777
23
24
25
26
27
"
2728
833
268
423
2018
18
19
28
"
3389
"
建福集團控股有限公司
交通銀行股份有限公司－Ｈ股
"
中國玻璃控股有限公司
"
映美控股有限公司
中國遠洋控股股份有限公司－Ｈ
股
"
海灣控股有限公司
"
晨訊科技集團有限公司
"
中國建築國際集團有限公司
森源國際控股有限公司
廣州富力地產股份有限公司－Ｈ
股
"
成謙聲匯控股有限公司
華訊股份有限公司
金蝶國際軟件集團有限公司
香港經濟日報集團有限公司
AAC Acoustic Technologies
Holdings Inc
"
新宇亨得利控股有限公司
"
16/06/05
23/06/05
"
23/06/05
"
29/06/05
30/06/05
$55,000,000
$2,927,815,000
$13,907,110,000
$19,620,000
$176,580,000
$142,500,000
$483,133,625
(a)
(a)
(b)
(a)
(b)
(a)
(a)
"
30/06/05
"
30/06/05
"
08/07/05
11/07/05
14/07/05
$9,053,866,375
$103,200,000
$240,800,000
$63,750,000
$573,750,000
N/A - By
$89,975,000
$75,066,480
(b)
(a)
(b)
(a)
(b)
"
14/07/05
15/07/05
20/07/05
03/08/05
09/08/05
$2,209,291,200
$60,000,000
$72,000,000
N/A - By
$203,320,000
$85,176,000
(b)
(a)
(a)
"
26/09/05
"
$894,348,000
$132,000,000
$247,500,000
(b)
(a)
(b)
(a)
(a)
(a)
(a)
Henry
Funds raised by IPO in Main Board
29
30
31
32
33
34
35
36
37
38
39
40
41
42
中國雨潤食品集團有限公司
"
互益集團有限公司
佳邦環球控股有限公司
"
中國永樂電器銷售有限公司
"
Sincere Watch (Hong Kong)
萬華媒體集團有限公司
卡森國際控股有限公司
"
廣東南粵物流股份有限公司－Ｈ
股
939 中國建設銀行股份有限公司－Ｈ
股
"
"
536 貿易通電子貿易有限公司
"
"
3366 華力控股(集團)有限公司
3336 巨騰國際控股有限公司
"
"
359 中國海升果汁控股有限公司
3339 中國龍工控股有限公司
"
"
1068
"
3344
471
"
503
"
444
426
496
"
3399
03/10/05
"
05/10/05
10/10/05
"
14/10/05
"
17/10/05
18/10/05
20/10/05
"
26/10/05
$769,770,200
$965,378,100
$101,000,000
$31,875,000
$286,875,000
$512,752,500
$666,571,500
$110,160,000
$120,000,000
$17,852,550
$757,908,450
$476,100,000
(a)
(b)
(a)
(a)
(b)
(a)
(b)
(a)
(a)
(a)
(b)
(a)
27/10/05
$4,668,148,100
(a)
"
28/10/05
"
02/11/05
03/11/05
"
04/11/05
17/11/05
"
$66,910,111,800
$145,800,000
$189,540,000
$65,000,000
$6,781,600
$357,218,400
$253,606,500
$20,028,580
$408,971,420
(b)
(a)
(b)
(a)
(a)
(b)
(a)
(a)
(b)
Henry
Funds raised by IPO in Main Board
43
44
45
46
47
48
49
50
51
順誠控股有限公司
"
申洲國際集團控股有限公司
"
百盛商業集團有限公司
"
敏實集團有限公司
"
新澤控股有限公司
東風汽車集團股份有限公司 －
Ｈ股
"
"
1083 百江燃氣控股有限公司
3318 中國香精香料有限公司
2088 西王糖業控股有限公司
"
"
531
"
2313
"
3368
"
425
"
95
489
17/11/05
"
24/11/05
"
30/11/05
"
01/12/05
"
02/12/05
07/12/05
$41,494,750
$2,140,630,250
$78,750,000
$708,750,000
$486,864,000
$1,379,448,000
$45,000,000
$405,000,000
$97,440,000
$397,321,600
(a)
(b)
(a)
(b)
(a)
(b)
(a)
(b)
(a)
(a)
"
08/12/05
09/12/05
09/12/05
"
$3,575,878,400
N/A - By
$118,000,000
$263,200,000
$263,200,000
(b)
(a)
(a)
(b)
Remarks : (a) Hong Kong Offers / (b) International Offers
Total funds raised is $136,543,877,070
Henry
Funds raised by IPO in Main Board
Total Funds Raised by H shares is $131,253,961,730







6
12
14
17
22
36
37
2727
1088
3328
1919
2777
3399
939
上海電氣集團股份有限公司－Ｈ股
中國神華能源股份有限公司－Ｈ股
交通銀行股份有限公司－Ｈ股
中國遠洋控股股份有限公司－Ｈ股
廣州富力地產股份有限公司－Ｈ股
廣東南粵物流股份有限公司－Ｈ股
中國建設銀行股份有限公司－Ｈ股
28/04/05
15/06/05
23/06/05
30/06/05
14/07/05
26/10/05
27/10/05
$ 5,053,950,400
$25,489,368,750
$16,834,925,000
$ 9,537,000,000
$ 2,284,357,680
$ 476,100,000
$71,578,259,900
Henry
Funds raised by IPO in Gem Board

Year 2005 (up to 13rd October 2005)
Stock
Company Name at time of listing
Code
1
2
3
4
5
6
7
8

8317
8306
8251
8329
8233
8310
8319
8289
財華社集團有限公司
綠陽國際控股有限公司
上海楝華石油化工股份有限公司
深圳市海王英特龍生物技術股份有限公司
中國基建港口有限公司
捷豐家居用品有限公司
友成控股有限公司
安瑞科能源裝備控股有限公司
Date of
Listing
(dd/mm/yy)
Funds Raised
(HK$)
07/01/05
28/02/05
13/07/05
12/09/05
16/09/05
13/10/05
13/10/05
18/10/05
$32,000,000
$50,000,000
$54,590,000
$78,101,100
$72,000,000
$33,600,000
$50,000,000
$180,000,000
Total funds raised is $550,291,100
Henry
Funds raised by IPO in Gem Board
Total Funds Raised by H shares is $132,691,100

3
8251
上海楝華石油化工股份有限公司
13/07/05

4
8329
$54,590,000
深圳市海王英特龍生物技術股份有限公司
12/09/05
$78,101,100
Henry
Funds raised by IPO

Total funds raided by IPO in the Main board and
Gem board are $137,094,168,170

Total funds raised by China enterprises (H
shares) is $121,574,261,330 which occupied
88.6% of the total funds
Henry
Funds raised by IPO

Ranking of China-Aff stocks raised funds by IPO
Ranking Listed time Funds raised from IPO
1
2
3
4
5
6
7
Stock name
27/10/05
建設銀行 (939)
$62,241,968,400
22/06/00
中國聯通 (762)
$43,607,699,091
23/10/97
中國移動 (941)
$32,665,054,560
18/12/03
中國人壽 (2628)
$26,713,818,250
19/10/00
中國石油化工股份 (386)
$26,680,975,920
15/06/05
中國神華 (1088)
$25,489,368,750
07/04/00
中國石油股份 (857)
$21,213,185,920
Henry
Trading Value
10 most active stocks in dollars in 2004:

China-Aff stocks occupied 6 of them
(3,4,6,8,9,10)
Henry
Trading Value
The statistics for the trading value in 2004:
Total trading value on Gem and Main Board (HK$mil)
$3,422,929
Red chips stocks and H shares trading value (HK$mil)
$1,555,812
Percentage occupied
45%

Trading value of Red chips stocks and H shares
occupied 45% of the whole
Henry
China-Aff share’s position



√
Total funds raised by China enterprises (H
shares) is $121,574,261,330 which occupied
88.6% of the total funds
China-Aff stocks occupied 5 in 10 of the most
active stocks
Trading value of Red chips stocks and H shares
occupied 45% of the whole stock market
China-Aff stocks show their important position in
the stock market of Hong Kong
Henry
Hong Kong
Stock Exchange ?
What is the role of
Anthony
Opportunity
Direct
Indirect
Anthony
Direct
1.
Standard system and supervision
2.
Recognition of Hong Kong Stock
Exchange
3.
Congenital advantages of Hong
Kong
Anthony
1.)Standard system
and supervision (direct)


International-based
follows:
 the
instruction of international accounting system
 rule of business administration

more confidence
Anthony
2.)Recognition of Hong Kong
Stock Exchange (direct)
 globally
function
 price
 powerful
financing and re-financing
Anthony
3.)Congenital advantages
of Hong Kong (direct)
 close
relationship
 close
distance
 close
culture
China
Anthony
Indirect
 Consideration
of financial safety in
China
 Non-stop
economic growth in China
Anthony
1.)Consideration of financial
safety in China (Indirect)






not well-developed financial system
depends mainly on the banking system(人民銀行)
99% financing from banks in the 1st term
high risk and pressure on banking system
Hong Kong’s total market value relative to GDP----400%
China <30%; USA and England<100%
risk sharing by international investors
Anthony
2.)Non-stop economic growth
in China
9% growth rate in recent 3 years
 demand of financing
 need time to wait for the improvement and
restructuring of financial system of China
 impossible to wait

Anthony
The End
Q&A
1.) Stock Exchange of Hong Kong Ltd is
formed by four exchange. Which of the
following is not one of them?
(a) Kam Ngan Exchange
(b) Kowloon Exchange
(c) Far East Exchange
(d) Hong Kong Exchanges and
Clearing Ltd
(e) Hong Kong Stock Exchange
2.) Which of the following(s) is/are the
China-aff Stocks?
(a) H Shares
(b) Red Chips
(c) Blue Chips
(d) A and B are true
(e) All of the above
3.) Which one is the advantage of Hong
Kong for the development of financial
system?
(a) Standard system and supervision
(b) Close relationship with China
(c) Close distance with China
(d) Close culture with China
(e) All of the above
Group Members:
Lam Shuk Yee Zoe (033087)
 Chiang Ho Wang Jason (033098)
 Lui Ka Fai Anthony (033100)
 Cheng Hang Lee Henry (033101)
 Yan Wai Man Tiffany (033103)
 Chan Ka Shu Kenneth (033183)
