Thursday, January 02, 2014 8:59:19 AM

ChinaClear joins HKEx’s central clearing and settlement system

The Hong Kong Securities Clearing Company (HKSCC) has admitted the China Securities Depository and Clearing Corporation (ChinaClear) as an agency participant.

ChinaClear sought admission to the Central Clearing and Settlement System (CCASS) of HKSCC to enhance its efficiency and strengthen the protection of mainland investors. As a result, ChinaClear will now be able to perform specific custody functions.

"The admission of ChinaClear as a clearing agency participant is significant as it holds all Shenzhen B shares in its custody," Charles Li, CEO of Hong Kong Exchanges and Clearing (HKEx), HKSCC’s parent company, said.

"ChinaClear's inclusion in CCASS will be increasingly important as more B share companies in the mainland convert their shares to H shares and become part of our market."

Meanwhile, HKEx set several new records in its securities and derivatives market in 2013, according to its market statistics.

Market capitalisation exceeded HK$24 trillion for the first time, reaching its record of HK$24.3 trillion on 2 December 2013. 

The turnover of exchange traded funds and real estate investment trusts also reached record highs of HK$874.2 billion and HK$80.9 billion respectively.

In the derivatives market, the trading volume of H-shares index futures and options, mini H-shares index futures and flexible H-shares index options also made records. 

According to HKEx, the total equity funds raised in the securities market from 1 January 2013 to 13 December 2013 was HK$304.1 billion, of which, HK$125.8 billion was raised through IPOs and $178.3 billion from post-IPO fundraising. During this time, the average daily securities market turnover was HK$63.1 billion.