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Investor Presentaiton

Chart 2 - Implied Value of Trading in the Cash Market Turnover by Type of Trade HK$ mil 4,000,000 3,000,000 2,000,000 1,000,000 0 1993/94 Local retail trading 1994/95 1995/96 1996/97 1997/98 1998/99 Local institutional trading Overseas institutional trading 1999/2000 2000/01 Overseas retail trading 2001/02 2002/03 EPs' principal trading Note: The implied value of trading for a particular type of trade is determined by multiplying the percentage contribution to market turnover by that type of trade as obtained from the survey by the total market turnover during the study period for that year of survey. Source: CMTS Different derivative products have a different investor mix. Overseas institutions are of growing importance in the derivatives market. 11. 12. 13. Different derivative products have different dominant groups of traders. More than 70% of trading volume in stock options was principal trading by Exchange Participants (EPs), though there has been a gradual decrease in the proportion over the past three survey years (from over 80% in 2000/01 to 73% in 2002/03). Correspondingly, local retail and overseas institutional participation has increased, with their respective percentage contributions roughly doubling in 2002/03 (to 11% and 9%) over 2000/01. Local retail investors have been dominant traders in mini-HSI futures (64% to 88% over the past few years). Their participation in the regular HSI futures is also significant (contributing over one-third of contract volume in 2002/03) but they were overtaken in the recent year by overseas institutions (contributing nearly 40% of contract volume in 2002/03). Local retail investors have less appetite for HSI options than HSI futures contributing less than a quarter of HSI options volume. Their relative contribution was also overtaken slightly by that of overseas institutions (about a quarter) in 2002/03. 5 Source for analysis: DMTS; survey period covered July to June the following year.
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