Hong Kong securities and derivatives markets break records in 2017
19 January 2018 Hong Kong
Image: Shutterstock
Hong Kong’s securities market reached $33.9 billion (RMB 21.7 billion) in terms of market capitalisation on the last trading day in 2017, exceeding the previous record of $31.5 billion in 2015, according to Hong Kong Exchanges and Clearing Limited (HKEX).
The number of new listings hit an all-time high of 174 companies, and trading volumes in Stock Connect rose significantly during the year.
Total northbound turnover reached $3.5 billion (RMB 2.2 billion) in 2017, while southbound turnover reached $2.2 billion (RMB 1.4 trillion), an increase of 193.9 percent and 170.2 percent, respectively.
In the derivatives market, total options trading reached more than 137 million contracts, which was up 18.4 percent from the previous full-year record of 116 million contracts in 2015.
Data from The World Federation of Exchanges revealed that turnover of securitised derivatives, Callable Bull/Bear Contracts (CBBCs) and derivatives warrants (DWs), were the world's highest for 11 consecutive years.
The number of newly listed CBBCs stood at 13,235, while DWs stood at 7,989, which according to WFE, surpassed 2015’s record.
The results come just weeks after the Securities and Futures Commission (SFC) of Hong Kong proposed additional safeguards on the use of securities lending, repo and derivatives transactions in a new consultation.
The SFC said its three-month consultation, which began in December and runs until 19 March, on its code for unit trusts and mutual funds was launched to “ensure that regulations in Hong Kong are aligned with international requirements and those of major overseas markets”.
In terms of securities lending and investments, an additional SFC safeguard looks to promote an overall limit of 50 percent on the use of derivatives for investment purposes by public funds, if approved by those questioned.
The number of new listings hit an all-time high of 174 companies, and trading volumes in Stock Connect rose significantly during the year.
Total northbound turnover reached $3.5 billion (RMB 2.2 billion) in 2017, while southbound turnover reached $2.2 billion (RMB 1.4 trillion), an increase of 193.9 percent and 170.2 percent, respectively.
In the derivatives market, total options trading reached more than 137 million contracts, which was up 18.4 percent from the previous full-year record of 116 million contracts in 2015.
Data from The World Federation of Exchanges revealed that turnover of securitised derivatives, Callable Bull/Bear Contracts (CBBCs) and derivatives warrants (DWs), were the world's highest for 11 consecutive years.
The number of newly listed CBBCs stood at 13,235, while DWs stood at 7,989, which according to WFE, surpassed 2015’s record.
The results come just weeks after the Securities and Futures Commission (SFC) of Hong Kong proposed additional safeguards on the use of securities lending, repo and derivatives transactions in a new consultation.
The SFC said its three-month consultation, which began in December and runs until 19 March, on its code for unit trusts and mutual funds was launched to “ensure that regulations in Hong Kong are aligned with international requirements and those of major overseas markets”.
In terms of securities lending and investments, an additional SFC safeguard looks to promote an overall limit of 50 percent on the use of derivatives for investment purposes by public funds, if approved by those questioned.
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