Hong Kong's securities and futures markets set new records last year with total turnover up 159% on the previous record set in 2006, to $21.7 trillion.

Reviewing the securities market's performance last year Hong Kong Exchanges & Clearing Chief Executive Paul Chow said today the average daily turnover rose 166% on the 2006 record to $88.1 billion. Single-day turnover surged to $210.5 billion on October 3 breaking the $79-billion record set August 28, 1998. The single-month turnover of $3.5 trillion recorded in October was 222% higher than the November 2006 record.

Turnover of H-shares last year tripled the record set in 2006 to $7.8 trillion. The turnover of derivative warrants also rose 162% on the record set in 2006 to $4.7 trillion.

Last year saw 6,312 newly listed derivative warrants breaking 2006's record of 2,823. Total equity capital raised also grew 6.5% from on 2006 record to $558.5 billion.

Mr Chow said last year's derivatives market performance broke all the previous records with the volume of futures and options doubling to 88 million contracts.

The volume of Hang Seng and Mini-Hang Seng Index Futures grew 35% and 102% on the previous records of 17 million and 4.3 million contracts. The volume of H-share Index Futures and Stock Options surged 122% and 154% to 11 million and 46 million contracts.

New initiatives

Mr Chow said Mini H-shares Index Futures will be launched March 31, adding HKEx is considering the admission of remote participants and will liaise with Securities & Futures Commission on suspending the securities market's tick rule.

April will see the launch of five-digit stock codes and May the introduction of closing auctions. The depositary receipt regime and enhanced growth enterprise market will launch in the year's third quarter.

Mr Chow said the exchange participants admission and registration function will be streamlined and the shareholding disclosure service rolled out in the year's second quarter.

HKEx will discuss with the Government broader stamp duty exemptions or relief for certain transactions to minimise inconsistencies. HKEx fees will be reviewed to ensure they are reasonable and competitive.

On market quality enhancement Mr Chow said changes in suspension policy will be implemented and a designated issuer website launched in February. Consultation conclusions on periodic financial reporting and proposed changes to the listing rules will be published in the year's second and third quarters.

Mr Chow said HKEx's market and trading systems will be upgraded this year, adding the second quarter will see the pact with Securities & Futures Commission on system requirements to facilitate electronic submission of disclosure of interest filings.