HKEx Strategic Plan 2007-09

Transcription

HKEx STRATEGIC PLAN 2007-09
Presentation to Hong Kong Securities Institute
By Paul M Y Chow, Chief Executive,
Hong Kong Exchanges and Clearing Limited
7 December 2006
AGENDA
Page
1.
Current HKEx Strategic Plan 2004-06
3
2.
Recent progress
5
3.
Forthcoming HKEx Strategic Plan 2007-09
14
4.
Conclusion
20
2
1. CURRENT HKEx STRATEGIC PLAN 2004-06
Strategic analysis
2003
• Difficult market
conditions
• Operational
difficulties
• Global /
business
diversification
initiatives
General business
strategies
Differentiation
Focus
Low-cost
operation
HKEx strategy
2004-06
Mainland
Partner
Key factors of
HKEx strategy
• Home market advantage
• Liquidity/critical mass
Quality
Market
•
•
•
•
•
Quality issuers
Quality intermediaries (capital, integrity)
Quality products
Quality infrastructure (system up-time)
Quality rules and regulations
Consolidation
•
•
•
•
Cost reduction
Concentration on key projects
Organisational restructuring
Improving operational efficiency
3
1.
Current HKEx Strategic Plan 2004-06
Key initiatives 2004-06
Listing
•
•
•
Current status
In progress
Completed
Completed
•
•
GEM review
New sponsor regulatory regime
Corporate Governance Action Plan – Listing Rule changes, Revised
Corporate Governance Code, Internal Control guidelines, Mainland
directors and officers training
Abolition of paid announcements
New listing decision-making structure
Trading
•
•
•
•
•
•
Trading spreads reduction (Phases I and IIa)
CBBC market framework
Review of derivative warrant market
Trading Hall renovation
Index futures and options on H shares and FTSE-Xinhua China 25
Revamp of stock options market (including raising position limits)
Completed
Completed
Completed
Completed
Completed
Completed
Clearing
•
•
Launch of DCASS
Enhancement of CCASS services
Completed
Completed
IT infrastructure
•
•
Implementation of SDNet
Upgrade of AMS/3, HKATS and DCASS capacity and hardware and
software replacement
Completed
Completed
Marketing
•
Opening of Beijing rep. office (2003), and Shanghai, Guangzhou branches
Completed
In progress
In progress
4
2. RECENT PROGRESS
HKEx’s equity market has grown strongly
30 Nov 2006
No. of listed companies
No. of newly listed companies (YTM)
Main Board
GEM
No. of delisted companies (YTM)
Main Board
GEM
Transfer from GEM to Main Board
Total equity funds raised (YTM) (HK$bn)
Funds raised by IPO (HK$bn)
Funds raised in secondary market (HK$bn)
YTM avg daily turnover – total market (HK$bn)
YTM avg daily turnover – equity (HK$bn)
2005
2004
2003
2002
1,159
46
41
5
1,135
1,096
1,037
978
67
57
10
70
49
21
73
46
27
117
60
57
22
28
11
14
6
13
7
2
15
11
2
9
0
2
6
2
6
4
0
2
424.8
275.0
149.9
301.3
165.7
135.6
281.8
97.2
184.6
213.8
59.1
154.6
110.5
52.0
58.5
32.8
25.3
18.3
14.6
16.0
13.7
10.4
9.3
6.7
6.1
Note: Total funds raised figure in 2005 excludes the HK$25.5 bn funds raised by the three REITs.
5
2.
Recent progress
Mainland China enterprises have contributed substantially to the
Hong Kong securities market
Mainland
enterprises % of total
30 November 2006
Unit
Total
No. of listed companies
Number
1,159
354
31%
No. of newly listed companies (YTM)
Number
46
26
57%
Main Board
Number
41
21
51%
GEM
Number
5
5
100%
Market capitalisation
HK$bn
12,196.8
5,801.3
48%
Total equity funds raised (YTM)
HK$bn
424.8
310.5
73%
Funds raised by IPOs
HK$bn
275.0
253.7
92%
Funds raised in secondary market
HK$bn
149.9
56.8
38%
HK$bn
25.3
14.9
59%
YTM avg daily turnover – equity
6
2.
Recent progress
Cash Trading (Main Board and GEM) – Aided by derivative warrants,
turnover has nearly quadrupled
Avg. daily turnover
(HK$m)
36,000
Derivative warrants
32,806
Equity and other securities*
32,000
22%
28,000
24,000
20,000
18,301
15,960
16,000
19%
13%
12,000
78%
10,419
10%
8,000
4,000
6,652
7%
87%
81%
2004
2005
90%
93%
0
2002
2003
Jan-Nov 2006
* Equity warrants, ELI, CBBC, Unit trusts, Debt and iShares
Source: HKEx
7
2.
Recent progress
Derivatives Trading –
Trading volume by product
Product
Hang Seng Index Futures
Mini Hang Seng Index Futures
2002-2006
growth in
average daily
volume (%)
161.2%
Jan – Nov 2006
Average daily
volume
51,200
% total
30.4%
2002 average
daily volume
19,602
89.5%
8,569
5.1%
4,522
H-shares Index Futures
Other futures**
(63.3%)
19,073
489
11.3%
0.3%
1,332
Stock options
355.8%
69,295
41.2%
15,203
Hang Seng Index Options
274.7%
16,372
9.7%
4,369
-
2,919
1.7%
-
17.4%
250
0.1%
213
271.7%
168,167
100%
45,241
H-shares Index Options
Other options**
Total average daily volume *
Total volume
-
38,341,774
-
11,029,404
* Sum of the average daily volume of each product
** Products available for trading in 2002 and 2006 may be different
Source: HKEx
8
2.
Recent progress
HKEx derivatives market daily volume (2002 – Nov 2006)
200
180
168
Thousands of contracts
160
140
53%
120
104
100
79
80
59
60
45
40
20
47%
39%
44%
47%
44%
56%
56%
2002
2003
61%
53%
2004
2005
0
Futures
Source: HKEx
Jan-Nov 2006
Options
9
2.
Recent progress
HKEx’s rankings among global exchanges
Jan - Oct 2006
% increase
from 2002
Equity funds raised (US$m)
658%
(10 months)
Market capitalisation (US$m)
(Period end)
216%
Value/
volume
2002
World
ranking
Value/
volume
World
ranking
50,539
3rd
6,665
8th
1,464,750
8th
463,055
10th
Share trading value (US$m)
227%
(10 months)
635,039
14th
194,003
19th
Stock Index Options volume
(mil contracts)
254%
(10 months)
3.9
13th
1.1
17th
Stock Index Futures volume
(mil contracts)
166%
(10 months)
16
10th
6
14th
Stock Options volume (mil contracts)
264%
(10 months)
13.5
8th
3.7
16th
n.a.
1,322
8th
n.a.
n.a.
Index futures notional value
(US$bn)
Source of overseas exchanges’ statistics: World Federation of Exchanges
10
2.
Recent progress
HKEx ranks 3rd in the first 10 months of 2006 among global exchanges by equity funds raised
Equity funds raised (US$bn) (Jan-Oct 2006)
Rank Exchange
1
2
3
London SE
NYSE
Hong Kong Exchanges
4
5
6
7
Luxembourg SE
TSX Group
Australian SE
BME Spanish Exchanges
8
9
2005
Jan – JuneTotal
2006
76.3
70.4
50.5
IPO
42.0
23.5
33.3
Post-IPO
1st
3rd
2nd
34.3
46.9
17.2
35.2
34.1
2.0
33.2
7.8
26.3
12.0
8.9
14.8
10.6
Tokyo SE
Euronext
26.8
19.5
17.1
16.7
n.a.
16.2
17.1
0.5
10
.
Sao Paulo SE
14.8
4.7
10.1
12
16
18
22
24
27
31
Nasdaq
Shanghai SE
Deutsche Börse
Korea Exchange
Singapore Exchange
Shenzhen SE
Taiwan SE Corp.
12.2
9.0
8.2
4.9
4.5
3.7
1.5
12.2
8.5
8.2
n.a.
2.7
3.7
1.0
0.8
2.2
0.8
2.7
0.7
..
Source:
2nd
1st
5th
0.5
n.a.
World Federation of Exchanges, Oct 2006 statistics report downloaded on 21 Nov 2006
11
2.
Recent progress
HKEx income, operating expenses and profit
$ million
3,000
2,844
2,694
2,500
2,312
2,394
1,998
2,000
1,808
Income
2,020
1,674
1,500
1,331
1,179
1,000
1,165
1,224
883
734
589
693
Operating expenses
1,156
1,340
1,145
Profit attributable to
shareholders
894
1,057
500
0
[
*
[0.58]
[0.59]
[0.64]
[0.61]
[0.48]
[0.43]
2000
2001
2002
2003
2004*
2005
] Cost-income ratio
Following the adoption of HKAS 39 and HKFRS 4 (Amendment), certain 2004 figures
previously reported were restated.
[0.31]
Year
Nine
months
ended
30/09/2006
Costs have been contained, leading to out-performance in the current
bull market.
12
2.
Recent progress
HKEx share price movement (27 June 2000 – 30 November 2006)
(HK$)
80
70
60
50
40
30
20
10
30/11/2006
12/04/2006
22/08/2005
29/12/2004
11/05/2004
18/09/2003
27/01/2003
10/06/2002
12/10/2001
16/02/2001
27/06/2000
0
13
3. FORTHCOMING HKEx STRATEGIC PLAN 2007-09
Mission 2004-06
“To operate a world-class marketplace for Hong Kong and Mainland China securities
and derivatives products.”
Mission 2007-09
“To be a leading international marketplace for securities and
derivatives products focused on Hong Kong, Mainland China and
the rest of Asia.”
14
3.
Substantial progress made:
 Mainland listings
 Capital-raisings (ICBC was
world’s largest)
 Derivatives volumes
 Market quality
 Infrastructure reliability
 Internal operations
 Cost control
New challenges:
New opportunities:
 Resumption of
Mainland IPOs
 Gradual Mainland
market opening
 Gradual RMB
liberalisation
 Overseas exchange
and OTC
competition
 Increasing influence
of hedge funds
The present scale of
the Hong Kong
market may support
more products,
services and
business initiatives
New challenges and opportunities ahead.
15
3.
General business
strategies
HKEx Strategy 2004-06
HKEx Strategy 2007-09
Mainland Positioning
Differentiation
Mainland Partner
Business Expansion
Focus
Building a Quality Market
Service Improvement
Low-cost
operation
Consolidation
The new strategies continue those of the existing plan but step up a level.
16
3.
Themes
Meaning
Implications
Mainland
Positioning
 China’s international
exchange
 Complements Mainland
exchanges
 Partners Mainland





RMB products
A:H shares
Mutual transparency (eg. share price display)
Mainland intermediaries
Mainland investors (QDII)
Business
Expansion
 Seeking new
customers
 Seeking more business
from existing
customers




Overseas issuers and intermediaries
Commodity and climate products
Asian focus
New Cash and Derivatives products









Service culture
MIS – finance and customer
Internal efficiency/automation
Accountability and organisation structure
Compensation linked to service /
performance
Service
Enterprise
Service mentality
Cost-effectiveness
Focus on customers
Transparency and
speed
17
3.
Selected key initiatives 2007-09
Exchange

Improve trading rights regime

Review barriers to Cash Market trading

-
Short selling
-
Stock lending
-
Stamp duty
-
Product regulatory framework
Review barriers to Derivatives Market trading
-

Introduce further Mainland-related and RMB-denominated products
-

Position limits
RMB products
Explore new product and service areas
-
Commodity futures
-
Climate products
18
3.
Selected key initiatives 2007-09 (cont’d)
Clearing


Review overseas-based clearing participants
Improve IP Accounts and Stock Segregated Accounts
Listing



Complete GEM review
Support SFC/Government in implementing “statutory backing”
Open equity listing regime to overseas issuers
Corporate






Strengthen accountability regime, compensation structure, training and succession planning
Review HKEx organisation structure and resource deployment
Work towards consolidation of HKEx offices and data centres
Review fee structure
Further develop HKEx MIS – finance and customer
Review HKEx IT systems for possible efficiency improvement
19
4. CONCLUSION
By the end of 2009, HKEx should have




Further strengthened its position vis-à-vis the Mainland:
- more Mainland-related listings
- more Mainland-related products (eg. RMB products)
- more Mainland-related participants and investors
Expanded its business into new areas:
- an Asian focus
- new product types (eg. commodities? carbon?)
Become a more business-orientated organisation:
- stronger accountability for business results
- improved market mechanisms, systems and procedures
Improved its service:
- service offering
- better internal infrastructure supporting service delivery
20
4.
Conclusion
Market quality is the key to market growth and sustainability
Market Quality
Market
liquidity
An orderly, informed
and fair marketplace
Investor
Confidence
Order flow
21
4.
Conclusion
*** THANK YOU ***
22

HKEx Strategic Plan 2007-09

Transcription

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