Financial markets
Hong Kong is the second largest venture
capital centre in Asia. It is also the second
largest stock market (8th largest in the
world) and third largest foreign exchange
market in Asia (7th in the world). It is
no surprise that this critical mass along
with the freedom of capital movement makes
Hong Kong a key offshore capital-raising
centre for Mainland enterprises.
As at the end of February 2004 more than
260 Mainland enterprises were listed in
Hong Kong with a total market capitalisation
of nearly HK$1,900 billion. The total amount
of capital raised by these enterprises in
Hong Kong exceeds HK$790 billion.
Selected Financial Markets
|
|
Number of Foreign Financial Institutions
2002 |
Number of Listed Companies, as
at year end 2003 |
Stock Market Capitalisation,
as at year end 2003 |
Daily Turnover
(Average of 2003, for Stocks) |
|
RMB billion |
US$ billion |
RMB billion |
US$ million |
|
Hong Kong |
196 |
852 |
5,814.55 |
702.24 |
10.90 |
1,315.95 |
|
Shenzhen |
25 |
505 |
1,265.28 |
152.81 |
5.04 |
608.96 |
| Note : |
Hong Kong figures converted
for comparison. Exchange rate 1 HK$
= 1.0615 RMB, 1 US$ = 8.28 RMB. |
| |
|
| Sources : |
Hong Kong Monetary Authority Annual Report 2002, Hong Kong Exchange and Clearing
Ltd., Shenzhen Stock Exchange, SSE Shanghai
Stock Exchange, and Almanac of China’s
Finance & Banking 2003. |
Being the major municipalities of the Pearl
River Delta region in Guangdong Province,
Shenzhen and Guangzhou together form a financial
centre in the South of China.
The Shenzhen Stock Exchange is one of two
stock exchanges in Mainland. By the end of
year 2003, there were 505 listed companies,
548 stocks and a daily average trading volume
of RMB5.042 billion. In 2003, both the banking
and insurance industries of Guangdong Province
grew rapidly with a balance of loans in financial
institutions amounting to RMB2,012.624 billion
(equivalent to US $ 243.159 billion), revenue
from insurance premiums of RMB37.822 billion
(equivalent to US $ 4.57 billion) both increased
by 20% compared with the previous year.
With the implementation of China’s commitment
to trade in services and the implementation
of CEPA, the pre-requisites for entry into
the financial sector of the Mainland are lowering.
As a result foreign investment into Guangdong
Province, especially from the financial sector
of Hong Kong is growing.
In 2003, a total of US $ 91 million in foreign direct investment was made into the financial insurance industry of Guangdong Province, three-times the figure of the previous year. By the end of September 2003, there were 16 operational foreign-funded banking institutions and 13 representative offices of foreign-funded banks in Guangzhou. The Hongkong and Shanghai Banking Corporation Limited has branches in Guangzhou and Shenzhen. Conversely, several enterprises in Guangdong Province have listed and issued shares in the financial market of Hong Kong, achieved a capitalisation of HK$10 billion.
The opening of the financial market of the Mainland combined with CEPA, has meant enhanced cooperation in financial activities between Guangdong Province and Hong Kong. For example steps are being taken to simplify the exchange and clearing of renminbi, payment of credit cards, cooperation in capital market and so on. Given the potential and caliber of the players in this financial market, the GPRD creates endless opportunities for future development.
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