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Investor Presentaiton

14. Local institutions have not been active in the HSI futures or stock options (contributing less than 10% of contract volume by product). However, they are relatively more active in HSI options (contributing about a quarter of contract volume) and have been the largest group of investor contributors (excluding EPs) for HSI options trading since 2001/02. Chart 3 - Percentage Contribution to Derivative Product Turnover by Investor Type (a) HSI futures (b) Mini-HSI futures (%) 100 90 80 70 60 56 50 40 30 20 10 (%) 100 90 80 24 2000/01 EPs' principal trading (%) 100 90 88 80 70 60 50 42 41 40 36 30 20 16 08 10 2001/02 2002/03 Overseas investors Local retail investors Local institutional investors. (c) HSI options 74 64 19 16 2000/01 2001/02 EPs' principal trading Overseas investors Local retail investors (d) Stock options (%) 100 90 83 80 70 70 60 50 60 50 40 40 38 30 31 30 30 28 21 154 20 20 10 10 11 2000/01 2001/02 2002/03 EPs' principal trading Overseas investors Local retail investors Local institutional investors 2002/03 Local institutional investors 06 2000/01 2001/02 2002/03 EPs' principal trading Overseas investors Local retail investors Local institutional investors 15. It is noteworthy that as in the cash market, overseas institutional investors have an increasing participation in each of the major derivative products on HKEX over the past three years (Chart 3). Brokers' principal trading is more significant, and local institutional trading is less significant, in the derivatives market than in the stock market. 16. EPS' principal trading constitutes a significant proportion of derivatives market turnover volume (19% for HSI futures and options and 73% for stock options in 2002/03), but a relatively low proportion of stock market turnover value (3% in 2002/03).
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