Hong Kong Securities Industry Profitability Falls
Hong Kong’s securities industry reported a decline in profitability in the
first six months of this year, compared to the second half last year, according
to the latest issue of the Financial Review of the Securities Industry produced
by the Securities and Futures Commission (SFC).
Compiled from monthly financial returns filed by the industry, the report describes
the aggregate financial position of all licensed securities dealers and securities
margin financiers, including those that are not participants of the Stock Exchange
of Hong Kong Limited (SEHK). It also gives an account of the performance of all SEHK participants categorised
by turnover. In the first half of 2008, overall net profit of all SEHK participants
was HKD9.6bn, compared with HKD21.3bn in the second half of last year. The net profit of Category A brokers fell to HKD5.58bn (USD1.23bn) from HKD8.58bn,
while that of Category B dropped to HKD3.46bn from HKD8.68bn. For Category C,
earnings decreased to HKD0.6bn from HKD3.98bn. According to the report, lower profitability of SEHK participants was attributable
directly to lower commission income resulting from a fall in market turnover.
As at the end of June 2008, margin loans decreased 17% from the end of 2007
level to HKD34.8bn, reflecting lower dealing activities. Average collateral
coverage decreased from 5.3 as at the end of 2007 to 4.6 as at the end of June
2008. The report also notes that daily average market turnover in the first six months
amounted to just HKD87bn, compared with HKD116bn for the half year ended December
31, 2007. A comprehensive report in our Intelligence Report series examining offshore investment, offshore stock exchanges, trusts and hedge funds is available in the Lowtax Library at http://www.lowtaxlibrary.com/asp/subs_reports.asp and a description of the report can be seen at http://www.lowtaxlibrary.com/asp/description_report9.asp
|
|
IMPORTANT NOTICE: THE LOWTAX NETWORK has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments. All materials on this site copyright THE LOWTAX NETWORK 1999 to 2009. Contact us for further information.