1. IPO in Hong Kong – your international capital formation centre in Asia
Hong Kong Exchanges and Clearing Limited
26 September Almaty Kazakhstan

2. Listing of CIS banks in Hong Kong
Hong Kong is the nearest IFC from Kazakhstan and many CIS countries
Almost the same time zone
Investors and investment banks have experience in restructuring and listing banks from China
Very favorable PE valuations for banks in emerging economies
Many of the world’s largest financial institutions with sophisticated understanding of banks in emerging markets are headquartered in Hong Kong

3. HKEx ranks 7th among global exchanges
London
(5th: USD3,854 bil)
Tokyo
(2nd: USD4,518 bil)
New York
(1st: USD15,590 bil)
Shanghai
(6th: USD2,382 bil)
Shenzhen
(19th: USD707 bil)
Singapore
(21st: USD483 bil)
Hong Kong
(7th: USD2,276 bil)
Source: WFE – World Federation of Exchanges (as of Aug 2007), Nasdaq data as of Jul 2007

4. Total fund raised amount by global stock exchanges in 200627
Total fund
raised (USD bil) 8
Rank 26
IPO equity fund raised (USD bil) 4
Euronext
Stock Exchange 67 95 3 2 43 56 1
103 37
NYSE
London
Hong Kong … 17 5
Singapore 6 22
World’s largest IPO -
Industrial and Commercial Bank of China Limited
raised about USD16 bil in Hong Kong on 27 Oct 2006
Source: WFE (Jan – Dec 2006)

5. Hong Kong can conduct super large IPOs Inter-national offering
Global top 5 IPOs from Jan 2005 to Aug 2007 – 3 were listed in Hong Kong
Hong Kong can conduct super large IPOs
Rank
Name of Issuer
Country / Area
of origin
Date of listing
IPO fund raised
(USD bil)
Inter-national offering 1
Industrial and Commercial Bank of China Ltd
Mainland China
10/2006
16.0 2
Bank of China Ltd
6/2006
11.2 3
OAO Rosneft Oil Co
Russia
7/2006
10.7 4
China Construction Bank
10/2005
9.2 5
VTB Bank
5/2007
8.0
91%
91%
93%
Source: Bloomberg

6. Competitive P/E ratio among other securities markets12
London 15
Korea 18
New York
P/E Ratio
Market
Singapore 16
Hong Kong
Source: Taiwan Stock Exchange website (as of June 2007)

7. Market capitalization (Jul 07) vs GDP (06) ratio
High % of Market Cap / GDP
= High degree of internationalization
Source : International Monetary Fund & World Federation of Exchange

8. The Heritage Foundation has rated Hong Kong as…
The World's Freest Economy
for 13 consecutive years
No trade barrier
Complete freedom of capital flow
Well- established rule of law
Low taxation
Extensive banking and service industry that is regulated non-intrusively and transparent
Source: 2007 Index of Economic Freedom published by The Wall Street Journal and The Heritage Foundation

9. No. 1 in Asia & No. 3 in the world global financial centre.”
The City of London Corporation : Hong Kong’s competitiveness as a financial center…
No. 1 in Asia & No. 3 in the world
People
Business
Environment
Market
Access
“Hong Kong is a thriving regional centre.  It performs well in all of the
key competitiveness areas, especially in regulation… Hong Kong is a real contender to become a genuinely
global financial centre.”
Infrastructure
General
Competitiveness
Source: Research on the Global Financial Centres Index by The City of London Corporation, Mar 2007

10. The Hong Kong market accommodates issuers of different size
Market capitalization of the 1,206 listed Hong Kong companies (as at 31 Aug 2007)
No. of Companies
47% of the listed issuers’
market capitalization is less than
HKD1 bil
Market Capitalization (HKD)
Source: HKEx

11. We have expertise in IPOs of different sizes
No. of newly listed companies from Jan 2003 – Aug 2007
No. of companies 67 33 46 51 50 22 26
IPO fund raised
(HKD) 4
Note: Excluding 19 companies which were listed by introduction and 6 Real Estate Investment Trusts
Source: HKEx

12. Brokers come from different parts of the world
Origin of the 132 overseas brokers in Hong Kong
Number of Overseas Brokers
“Others” include brokers from Switzerland, Netherlands, Australia, Germany, Philippines, Thailand, etc 27 23 22 17 11 8 7 5 5 4 3
Source: HKEx (as of June 2007)

13. Listing in Hong Kong provides exposure to a diversified international investor base…
42% of cash market trading are generated from overseas investors
65% are generated from institutional investors
Source: HKEx Cash Market Transaction Survey 2005/06

14. Overseas fund managed in Hong Kong is set to grow further … partly thanks to QDII
USD bil
USD791 bn
(+36%)
Increased by 280% in 5 years
62%
USD582 bn
(+25%)
USD465 bn
(+23%)
63%
63%
USD379 bn
(+80%)
USD210 bn
(+0%)
USD208 bn
38%
63%
63%
37%
70%
37%
37%
30%
37%
Source: SFC Fund Management Activities Survey 2006

15. .. As well as new listings from the Mainland
Mainland Enterprises
Total
No. of listed companies (as of 31 Aug 2007)
1,206
17,747 54 47
139
132
3,295
383
9,987 36 26
106 67
1,660
32%
56%
66%
55%
76%
50%
Market capitalisation (HKD bil) (as of 31 Aug 2007)
Daily Average Turnover (HKD bil) (Jan – Aug 2007)
No. of newly listed companies (Jan – Aug 2007)
Funds raised by IPO (HKD bil) (Jan – Aug 2007)
Funds raised in secondary market (HKD bil) (Jan – Aug 2007)
Total funds raised (HKD bil) (1993 – Aug 2007)
Source: HKEx

16. Besides Mainland Chinese companies, we are also a platform open to foreign companies …
About 80 companies from 15+ locations (excluding Mainland China and HK) with foreign shareholders are listed in HK
Companies
With foreign
shareholders
Japan
Korea
Indonesia
Singapore
Malaysia
Thailand
Canada
Taiwan region
Majority of them are from Asian countries
About half of these companies have significant operations in China
Note: Companies with foreign shareholders are defined as companies controlled as to 30% or more by an entity which is neither from Mainland China nor from HK

17. Some of which operate outside of Hong Kong and China
Mongolia
N. America
Cambodia
Vietnam
Indonesia
Stock Code
Company Name
Market Cap. as of
18 Jul 2007 (USD mil)
Place of Operation
678
Star Cruises Ltd.
3,048
N. America
276
Mongolia Energy Corporation Ltd.
2,509
Mongolia
3918
NagaCorp Ltd.
718
Cambodia
2317
Vedan International (Holdings) Ltd.
211
Vietnam
502
Pan Sino International Holdings Ltd.* 71
Indonesia
* Listed on GEM (Stock Code: 8260) in December 2003 at an offer price of USD 0.06 (HKD 0.45) per share and raised a sum of USD 13.8 mil at IPO. The company was transferred from GEM to Main Board on 1 March 2006.
Source: HKEx

18. A and H Shares : the dual listing model in HK
A shares
Renminbi denominated ordinary shares
Issued by companies incorporated in the PRC
Listed on Shanghai and Shenzhen Stock
Exchanges
Traded in Renminbi
Available only to local Mainland Chinese
investors and qualified foreign institutional
Investors (QFII)
Shenzhen
Shanghai
Source: HKEx and FTSE Xinhua Index

19. A and H Shares : the dual listing model in HK (cont’d)
Renminbi denominated ordinary shares
Issued by companies incorporated in the PRC
Listed on the Stock Exchange of Hong Kong
Traded in Hong Kong dollars
First H-Share listed in July 1993
Shenzhen
Shanghai
We are very experienced in handling listings of companies from an emerging economy
Source: HKEx and FTSE Xinhua Index

20. Hang Seng Index past performance (Sept 06 – Aug 07)
As of 30/06/2007,
Hang Seng Index at a record high of 23, on 31 Aug, an increase of 38% yoy
Source: Bloomberg and HKEx

21. Average daily turnover
Listing statistics of some financial institutions in HK (31 Aug 2007)
Company
Market
Cap.
(US$ mil)
P/E
(times)
Total Fund Raised
Average daily turnover
YTM Aug 07
Listing Date
HSBC
211,026 13
21,039
367.5
N/A
Manulife
61,070* 18
13,189
3.0
Sep 99
ICBC
54,232 29
16,060
245.9
Oct 06
Standard Chartered
42,876
4,120
5.6
Oct 02
Bank of Communications
25,970 32
2,164
89.5
Jun 05
China Merchants Bank
10,025 55
2,660
88.5
Sep 06
China CITIC Bank
9,548
4,232
48.2
Apr 07
Fubon Bank
657 16
300
0.8
Nov 93
Source: HKEx
* Bloomberg as at 24 Sept 2007

22. Banks & Financial Institutions listed in Hong Kong: China CITIC Bank
% Change since IPO: 2%
Market Cap.: USD 9,548 mil
Average Daily Turnover in 2007: USD 48.2 mil
Listing Date: 27 Apr 2007
IPO Fund raised: USD 4,232 mil
Source: Bloomberg and HKEx

23. Banks & Financial Institutions listed in HK: (1) Industrial and Commercial Bank of China
% Change since IPO: 65%
Market Cap.: USD 54,232 mil
Average Daily Turnover in 2007: USD 246 mil
Listing Date: 27 Oct 2006
IPO Fund raised: USD 16,060 mil
Source: Bloomberg and HKEx

24. Banks & Financial Institutions listed in HK: (2) Bank of China
% Change since IPO: 36%
Market Cap.: USD 39,183 mil
Average Daily Turnover in 2007: USD 187 mil
Listing Date: 1 Jun 2006
IPO Fund raised: USD 11,149 mil
Source: Bloomberg and HKEx

25. Banks & Financial Institutions listed in HK (3) Bank of Communications
% Change since IPO: 250%
Market Cap.: USD 25,970 mil
Average Daily Turnover in 2007: USD 90 mil
Listing Date: 23 Jun 2005
IPO Fund raised: USD 2,164 mil
Source: Bloomberg and HKEx

26. Banks & Financial Institutions listed in HK (4) China Life
% Change since IPO: 949%
Market Cap.: USD 36,010 mil
Average Daily Turnover in 2007: USD 407 mil
Listing Date: 18 Dec 2003
IPO Fund raised: USD 3,434 mil
Source: Bloomberg and HKEx

27. Banks & Financial Institutions listed in HK (5) Ping An Insurance
% Change since IPO: 685%
Market Cap.: USD 26,672 mil
Average Daily Turnover in 2007: USD 90 mil
Listing Date: 24 Jun 2004
IPO Fund raised: USD 1,843 mil
Source: Bloomberg and HKEx

28. Listing requirements Main Board – 3 financial criteria
Profit Test
Profits of 3 years ≥ USD6.4million (HKD50million)
Market Cap/Revenue Test
(i) Market Cap ≥ USD513million (HKD4billion)
(ii) Revenue of the most recent audited year ≥ USD64million (HKD500million)
Market Cap/Revenue/Cash flow Test
(i) Market Cap ≥ USD256million (HKD2billion)
(ii) Revenue of most recent audited financial year ≥ USD64million (HKD500million)
(iii) Aggregate positive cash flow for 3 preceding financial years
≥ USD13million (HKD100million)
GEM – No profit or other financial requirement
Fulfill any one test

29. Listing requirements (Cont’d)
Main Board – Operating History
3 years (may accept a shorter trading record period if qualify under the Market Cap/Revenue test)
Management continuity
Ownership continuity and control for at least the most recent audited financial year
GEM – Operating History
2 years (maybe reduced to 1 year if certain requirements are met)

30. Listing process An issuer decides to list on HKEx Appointment
of sponsors
& other
professional
advisors
Restructuring,
preparation of
Accountants’
Report,
drafting of
prospectus
Sponsor
submits listing
application &
related document
to the Listing
Division of HKEx
Successful
listing in
Hong Kong
Roadshow to
promote to
investors
before trading
commences
Hearing by
Listing
Committee
Review of
listing
application by
the
Listing Division
Recommendation
Approval

31. To facilitate listings of overseas companies in Hong Kong
- 7 Mar 2007
SFC-HKEx Joint Press Release clarified the requirements of overseas issuers seeking a listing in applicants to comply with the shareholder protection requirements
2H 2007
Introduction of a Depositary Receipt regime under study
We are developing a Depositary Receipt program

32. The HKEx strategic plan 07-09
HKEx Mission
“To operate a world-class marketplace for Hong Kong and Mainland China securities and derivatives products.”
HKEx Mission
“To be a leading international marketplace for securities and derivative products focused on
Hong Kong, Mainland China and the rest of Asia.”

33. Contact Business Development Division
Add: 10/F, One International Finance Centre
1 Harbour View Street, Central, Hong Kong
Tel: (852)
Fax: (852)
HKEx website: