Hong Kong's securities market has experienced significant changes and rapid growth in the past decade, becoming more international and its China dimension more prominent, according to a Hong Kong Exchanges & Clearing report.

HKEx's latest newsletter Exchange said that in 1996-97 overseas investor trading accounted for 22%, and local investor trading 73%, in the securities market trading value. The percentages changed to 41% and 53% in 2005-06.

On the securities market's China dimension, 16% of the market capitalisation and 38% of equity turnover related to red chips and H-shares at end-1997. On June 30 this year the figures rose to 48% and 59%.

The number of listed companies doubled over the past 10 years to 1,196 from 619, with market capitalisation growing to $15.86 trillion from $4.35 trillion. The average daily turnover also rose from $12.6 billion to $59.3 billion.

The last decade saw the Hang Seng Index surge to 21,772, from 15,196. The Hang Seng China Enterprises Index (H-shares) also rose to 12,001, from 1,015.

For the derivatives market, Hang Seng Index Futures was the most actively traded product 10 years ago, with the volume of 513,717 contracts and month-end open interest of 47,472 contracts.

In June this year Stock Options topped the list, with the volume of 3,638,930 contracts and month-end open interest of 3,571,810 contracts.