Update on HKExs Latest Developments

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Update on HKExs Latest Developments

• Mr Paul ChowHKEx Chief Executive8 July 2003

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Development Strategy
HKEx is committed to reinforcing and developing
the Hong Kong markets as

• The key international capital market for Mainland
  and Hong Kong enterprises
• The Asian time-zone pillar in the global
  securities and futures markets
• The preferred Asian partner for major equities
  and derivatives exchanges seeking to build global
  alliances.

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Development Strategy
In the longer term, HKEx will join with other
financial institutions and professionals to work
towards the following objectives

• Assist Mainland enterprises and investors in
  moving into the international market
• Establish a rating mechanism appropriate for the
  region and develop a new rating service industry
  in the region
• Become the most important investment and fund
  management centre in the Asian time zone where
  analysts assemble and
• Integrate with the Shanghai and Shenzhen markets
  upon full convertibility of renminbi to develop
  into Asias biggest financial market.

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Strengthened Corporate Structure
Corporate structure was revised in June to
strengthen operational efficiency

• Main structural changes involved the Exchange
  Business Unit and the Listing, Regulation and
  Risk Management Unit which was renamed the
  Listing Unit
• Streamlining resulted in some redeployment and
  redundancies
• Corporate restructuring has been completed but
  workflow review continues
• Staff salaries continue to be reviewed annually
  based on individual performance.

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Revised Corporate Structure
Chief Executive Paul Chow
Chief Operating OfficerPatrick ConroyChief
Operating Officer
E-Business Information ServicesRoger LeeHead
- E-Business Information Services
Legal Secretarial ServicesMary KaoHead -
Legal Secretarial Services
ExchangeLawrence FokDeputy Chief Operating
OfficerHead - Exchange
ClearingWalter ReischHead - Clearing
Finance, Treasury, Administration Risk
ManagementKaren LeeChief Financial Officer
IT/SystemsStephen LawHead - IT/Systems
ListingRichard WilliamsHead - Listing
Corporate CommunicationsHenry LawHead -
Corporate Communications
China Development Listing Promotion
Corporate Finance
Finance
Expert Department
Treasury
Cash Market Development Operations
Internal AuditCoven HuiHead - Internal Audit
Regulatory Discipline
Administration
Derivatives Market Development Operations
Research PlanningMatthew HarrisonHead -
Research Planning
Risk Management
Participants Admission Surveillance
Human ResourcesBrenda YenHead - Human Resources
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Looking Ahead

• Listing Matters
• The Governments consultation on the listing
  regime
• Amendments to Listing Rules relating to corporate
  governance issues
• Conclusions on the consultation on proposed
  amendments to Listing Rules regarding sponsor
  regulation and
• Conclusions on the consultation on initial and
  continuous listing eligibility criteria and
  delisting mechanism

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Looking Ahead

• Market Facilities
• Upgrade of HKATS to OM 17.1
• Integration of derivatives clearing
• Enhancement of Investor Account in CCASS
• Third Party Clearing
• Scripless market model
• Consolidation of clearing houses
• Consultation on narrowing minimum spreads

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Looking Ahead

• Development of Products and Services
• Exploration of new financial products and review
  of existing products
• Development of energy derivatives
• Capital Protected Instruments
• Equity Linked Instruments
• Regional Exchange Traded Funds
• Stock Options
• Interest Rate Swap Futures

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Market Highlights
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Market Highlights
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Thank you