Hong Kong Stock Exchange

Agenda

1.History

2. Organisational Structure

3. Markets

4. Types of instruments 5. IPO

6. Listing procedure

Presentation by Alexandra Pryakhina

Andrey Zinoviev Stepan Klochkov

Overview

In the world:

1 — NYSE

2 — NASDAQ

3 — London SE

4 — Tokyo SE

5 — Shanghai SE

6 — HK SE

In Asia:

1 — Tokyo SE

2 — HK SE

Mcap: $ 18,65 trln

1,615 companies listed

826 — mainland China

781 — Hong Kong

145 — foreign Foreign 8%

Hong Kong 45%

Mainland China 47%

Profit: $2,96 trln

Hang Seng index—

avg. weighted value of 34 largest listed companies (=65% of the total HK mcap)

Securities trade

begins in HK

1866 1891

Association of Stockbrokers of HK (formal S.M.)

1914

Renamed

into

HKSE

by 1972

4 exchanges,

calls for

unified SE

History

1980

HKSE

Ltd.

1986

Trading

starts

Need for reforms

Market

crash

1987

• Market regulation

(commission)

• Clearing

• Automatisation

• Listing rules

etc…

Improvements

Nowadays

Organisational Structure

Board

Management CommitteeGroup Strategy

Internal Audit

Company’s Secretary

CEO

Listing and Regulatory

AffairsFinanceCorporate

ServicesGlobal

MarketsGlobal

ClearingRisk

Management IT HR

4 clearing houses = the only recognised c.h.

in Hong Kong

the Stock ExchangeHong Kong

Futures Exchange

Limited

Subsidiaries

Markets

Securities market:

• Main Board • Growth enterprise market (GEM)

Derivatives market

Securities marketMain board

• Equity Securities

• Depositary Receipts

• Stapled Securities

• Debt Securities

• Unit Trusts / Mutual Funds

Securities market

Growth enterprise market (GEM) —

fundraising opportunities for enterprises with good growth potential

“High growth, high risk”

• Stocks

• Equity warrants

• Debt securities

Derivatives market

• Equity Index Products (ex. BRICS Futures) • Equity Products • Currency Products (RMB Currency Futures) • Interest Rate and Fixed Income Products

(HIBOR Futures) • Commodities Products

Trading time

• Pre-opening auction session: 9:00 am - 9:30 am. • A morning continuous trading session: 09:30 am - 12:00 pm. • An extended morning session: 12:00 noon - 1:00 pm. Only

specifically-designated securities (currently two ETFs). • Afternoon continuous trading session: 1:00 pm - 4:00 pm.

IPO

Principles:

• Applicants — suitable for listing

(e.g., unlimited # of shareholders,

management presence)

• Fair issue and marketing

• Sufficient info

• Fair treating of holders

• Directors: pursuit of shareholders’ interest

Listing ProcedureAppointment

of Sponsors (≥2 months before

submission)

Submission of

the Application

Compliance

Check (3 days)

Accepted

Returned Accelerated

review

process

Qualitative

assessment (10 days)

8 weeks’ moratorium

Comments

and hearing (≤40 days)

Listing

Your questions

are welcomed