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1 H-shares Index Futures Launch Date : 8 December 2003.

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Presentation on theme: "1 H-shares Index Futures Launch Date : 8 December 2003."— Presentation transcript:

1 1 H-shares Index Futures Launch Date : 8 December 2003

2 2 Why Launch H-shares Index Futures? u To meet market demand created by the rapid growth in H-shares market and the anticipated trend of China enterprises to be listed in the form of H-shares u To offer an effective trading and hedging instrument for investors to assume and/or manage their risk exposures in China enterprises listed in Hong Kong u To strengthen Hong Kongs role as the preferred international capital formation centre for Mainland China enterprises by deepening the liquidity of the underlying cash market and OTC derivatives market

3 3 HKEx - Market for H-shares u During the period from 1993 to September 2003, H-share companies raised more than HK$150 billion through Initial Public Offerings in HK. u As of 30 September 2003, there were 82 H- shares listed on the Stock Exchange (59 on the Main Board and 23 on Growth Enterprise Market, or GEM).

4 4 Investors Interest on H-shares H-shares Turnover Avg Daily Turnover 2002 HK$581 Mil 2003* HK$1,449 Mil + 149% * Jan – Sep 2003

5 5 Underlying Index of H-shares Index Futures u Compiled by HSI Services Ltd. u All H-Shares in the Hang Seng Mainland Composite Index u Market cap. weighted index u Comprised of 32 constituent stocks HSCEI – Hang Seng China Enterprises Index

6 6 Performance of HSCEI Year 2003 Return Performance (Up to 30 Sep 2003) HSCEI HSI +61.8% +20.5%

7 7 20-Day Annualised Volatility for HSCEI

8 8 HSCEI Market Capitalisation 0 50 100 150 200 JanFebMarAprMayJunJulAugSep Year 2003 HK$ Billion

9 9 HSCEI Turnover

10 10 HSCEI Statistics and Characteristics u Index Level - 3,772 (as of 20 October 2003) u Market capitalisation - HK$236 billion (as of 20 October 2003) u Average daily turnover (Jan – Sep 2003) - HK$1.17 billion, accounting for 13% of total market turnover (Main Board and GEM) u High Volatility (2 Jan – 30 Sep 2003) - 26% Vs 16% (HSI) u Good Return (2 Jan – 30 Sep 2003) - 61.8% Vs 20.5% (HSI)

11 11 HSCEI Constituent Stocks (As of 20 Oct 2003) Company Name Weighting (%) Company NameWeighting (%) 1PetroChina Co. Ltd.21.2%17BYD Co. Ltd.1.4% 2China Petroleum & Chemical Corporation17.4%18China Southern Airlines Co Ltd.1.4% 3China Telecom Corporation Ltd.8.4%19 Sinopec Zhenhai Refining & Chemical Co. Ltd.1.4% 4Huaneng Power International, Inc.7.8%20Tsingtao Brewery Co. Ltd.1.4% 5Aluminum Corporation of China Ltd.4.1%21Guangshen Railway Co. Ltd.1.3% 6Beijing Datang Power Generation Co. Ltd.3.0%22Anhui Conch Cement Co. Ltd.1.3% 7China Shipping Development Co. Ltd.2.9%23Jiangxi Copper Co. Ltd.1.3% 8Zhejiang Expressway Co. Ltd.2.9%24Angang New Steel Co. Ltd.1.2% 9Yanzhou Coal Mining Co. Ltd.2.5%25Sinopec Yizheng Chemical Fibre Co. Ltd.1.0% 10Sinotrans Ltd.2.5%26TravelSky Technology Ltd.1.0% 11Sinopec Shanghai Petrochemical Co. Ltd.2.1%27China Eastern Airlines Corporation Ltd.0.8% 12Jiangsu Expressway Co. Ltd.2.0%28Shenzhen Expressway Co. Ltd.0.8% 13Beijing Capital International Airport Co. Ltd.1.6%29Qingling Motors Co. Ltd.0.8% 14 Shandong International Power Development Co. Ltd.1.6%30 Sinopec Beijing Yanhua Petrochemical Co. Ltd.0.8% 15Maanshan Iron & Steel Co. Ltd.1.5%31Anhui Expressway Co. Ltd.0.5% 16China Oilfield Services Ltd.1.4% 32Beijing North Star Co. Ltd.0.4%

12 12 H-shares Index Futures Contract Specifications u Trading Symbol: HHI u Contract multiplier = HK$50 u Contract value is round HK$185,000 u Minimum Fluctuation: 1 index point u Contract months are the same as HSI Futures - Spot Month, the next calendar month, and the next two calendar quarterly months u Exchange Fee - HK$3.50 u Commission : Negotiable

13 13 Questions and Answers

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