Hong Kong Exchanges & Clearing Thursday released its strategic plan for 2007-09, providing a roadmap in the next three years along the themes of reinforcing its position vis-a-vis the Chinese mainland, further expanding business and improving service delivery and quality.
Presenting the plan at the Securities Institute roundtable luncheon, HKEx Chief Executive Paul Chow said that aided by favorable market conditions, the body has made good progress in the listing of mainland enterprises, including major state banks and insurance companies.
As of Nov. 30, there were 1,159 listed companies in Hong Kong, with a market capitalization of 12.197 trillion HK dollars (1.564 trillion U.S. dollars), a total of 424.8 billion HK dollars (54.46 billion U.S. dollars) equity funds raised and an average daily turnover of 32.8 billion HK dollars (4.21 billion U.S dollars). Among the listed companies, 354 came from the mainland, which accounted for 48 percent of the market capitalization and 73 percent of the total equity funds raised.
Noting that Hong Kong has become the major capital formation center in Asia, Chow said new challenges and opportunities are emerging and HKEx has to bolster its overall performance and advance its mission to be a leading international marketplace for securities and derivatives products focused on Hong Kong, the mainland and the rest of Asia.
Under the strategic plan, 16 key initiatives grouped under five key areas are identified to achieve the objective.
In listing: to complete Growth Enterprise Market review and open the equity listing regime to issuers from overseas jurisdictions.
In trading: to improve trading rights regime, address barriers to Cash and Derivatives Markets trading, introduce further mainland-related and renminbi-denominated products, and explore new product and service areas.
In clearing: to facilitate overseas-based clearing participants, and improve investor and stock segregated accounts services.
In corporate: to strengthen the accountability regime within HKEx, review its organization structure and resources deployment, consolidate its offices and data centers, and review fee structure.
In information technology: to review HKEx information technology systems for possible efficiency improvement.
Chow anticipated that by the end of implementing its Strategic Plan 2007-09, HKEx should have substantially improved its overall performance level.