HKEX Unevenly Closes Out Year, Futures Growth Pared by Securities Turnover

Futures volume was one of the few bright spots in an otherwise down year for HKEX.

Hong Kong Exchanges and Clearing Limited (HKEX) has released its year-end market statistics, which entailed its aggregated volumes and figures for the 2016 year – overall, the exchange saw a mixed performance over multiple key segments on a YoY basis.

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One of the strongest components of HKEX’s yearly market statistics were across its derivatives volumes, which soared to a new high of total turnover of 84,100,129 contracts. This bested a previous high of 73,462,212 contracts set back in 2015, good for a YoY growth of 14.5%.

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In addition, HKEX also experienced a strong performance across its securities market, with a total of 126 new listings, compared with 138 newly listed companies in 2015 (-8.7% YoY), while IPO fundraising reached $25.1 billion in 2016 – this was among the highest markets in the world, though well below its 2015 figure of $33.7 billion, or -25.5% YoY.

Securities Market Sees Decline

By December 30, 2016, HKEX had 1,973 listed companies with a total market capitalization of $24.8 trillion. This was below its 2015 counterpart, having fallen from $31.6 trillion in 2015, or -21.5% YoY.

Other instruments of note were HKEX’s turnover of Hang Seng Index Futures, having set a new record of 32,313,994 contracts in 2016, up 40 per cent from the previous high in 2011. Furthermore, the turnover of USD/CNH Futures reached 538,594 contracts in 2016, relative to a figure of 262,433 contracts in 2015 or 105.2% YoY.

The overall statistics are characteristic of an up-and-down year seen at most institutional exchanges, with droughts of volatility ultimately giving way to a historically active November.

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