HKEX Incurs Yearly Decline in Derivatives, Securities Volumes

The first two months of 2017 have shown a weaker performance across HKEX's volumes.

Hong Kong Exchanges and Clearing Limited (HKEX) has reported its market statistics for the first two months of 2017 – the latest figures constituted a decline on a year-over-year basis as various assets and business segments incurred drops in volumes.

In terms of HKEX’s securities market, the average daily turnover for the first two months of the calendar year came in at $69.7 billion, justifying a decline of -6.3 per cent from $74.4 billion over the same period in 2016.

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By extension, HKEX’s funds raised via IPOs for the first two months of 2017 were reported at $9.5 billion, or 102.1 per cent higher from just $4.7 billion in the first two months of 2016. This also included twenty-six new listed companies over the same period, which easily bested 2016’s figure of just ten new listings.

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Derivatives Rundown

Looking at its derivatives performance in the first two months of 2017, HKEX disclosed an average daily turnover of futures and options figure of 755,215 contracts, representing a decrease of -10.2 per cent from 841,367 in the same period last year.

Its average daily turnover of stock options for the first two months of 2017 came in at 339,406 contracts, which was indicative of a healthy growth of 12.5 per cent vs. 301,679 contracts in the first two months of 2016. One particularly strong performer was the average daily turnover of RMB Currency Futures in this same period, climbing to 3,872 contracts, compared with just 3,486 in 2016 or 11.1 percent year over year.

The decrease in turnover across these segments was not the result of seasonal factors, but was because of lower volatility and higher levels of risk aversion across markets. The same performance was seen at other venues in the Asia-Pacific (APAC) realm, nearly all of which failed to match their market activity in 2016.

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