Hong Kong continues to lead the UK and US in the trading of stocks and their options in these markets, Securities & Futures Commission research has found.

As of the end of last year, 53 stocks - including 35 H-shares and red chip stocks and 18 non-Mainland HSI constituent stocks - were available for trading in these three markets.

Excluding HSBC, Hong Kong accounted for 82% of the total turnover of these stocks in these three markets. The growth in trading of Mainland stocks was much higher than that in non-Mainland stocks in all three markets.

For stock options, Hong Kong accounted for at least 75% of total trading. The market shares for Hong Kong in the trading of stocks and their options have been largely stable in recent years. Hong Kong's share in the trading of HSBC options in particular has grown significantly.

Securities & Futures Commission Acting Chief Executive Officer Alexa Lam said Hong Kong's exchange trading fund market will be deepened and widened while transaction costs be cut to boost competitiveness.

The commission will study major exchange trading fund markets to draw on their experience and examine factors leading to a successful exchange trading fund market, she added.