2005 Annual Results

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2005 Annual Results Record-setting Year,
Record Results
Paul Chow Chief Executive, Hong Kong Exchanges
and Clearing Limited 8 March 2006
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Annual Results Announcement
Record Market Activities
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Annual Results Announcement
Key Market Statistics
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Annual Results Announcement
Record Performance from Record Market Turnover
and Stringent Cost Control
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Annual Results Announcement
Record Profit Since Merger
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Annual Results Announcement
Income Rose in Line with Market Activities
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Annual Results Announcement
2005 Investment Income
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Annual Results Announcement
Cost Pressure Mitigated by Cost Control
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Annual Results Announcement
First Half vs Second Half
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2006 Major Initiatives Building a Quality Market

• Enhance Listing Regulation
• Revamp listing decision-making structure (phase
  one in May)
• Continue review of GEM
• Further enhance corporate governance
• Support establishment of Financial Reporting
  Council
• Implement abolition of paid announcements and
  strengthen issuer information on HKEx website (by
  year-end)
• Continue work towards the establishment of
  statutory listing requirements
• Establish China Affairs Team

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2006 Major initiatives - Building a Quality Market

• Strengthen Market Infrastructure
• Upgrade software of HKATS Network Gateways
  (Q2-Q3)
• Implement phase 2 of network consolidation with
  migration of CCASS network to SDNet (June)
• Replace hardware and software of AMS/3 Open
  Gateway and Multi-Work Station (Q2/2006
  Q1/2007)
• Feasibility study and prepare for migration of
  AMS/3 for a higher version of server technology
  (Q3 Q4)

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2006 Major Initiatives - Building a Quality Market

• Service Market Users
• Launch and develop Callable Bull/Bear Contracts
  market (H1)
• Strengthen derivative warrant market, including
  web-based resource centre (Q2)
• Review market-maker model for derivatives market
• Introduce long-dated index options (March)
• Expand combo order functions to HSI Options and
  review possible introduction of tailor-made combo
  orders in derivatives market (March)
• Reduce trading spreads of shares traded below 30
  (phase 2 in July)
• Complete Trading Hall renovation with Exchange
  Exhibition Hall opening in late April

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2006 Major initiatives - Building a Quality Market

• Service Market Users
• Harmonise collateral policies of the three
  clearing houses
• Explore Third Party Clearing
• Further enhance CCASS nominee services
• Study expanding admission of Investor
  Participants to CCASS

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• Thank you