The Hong Kong Association of Online Brokers Limited

I am pleased to present my report on the Hong Kong Association of Online Brokers during the period I represented South China Securities Limited and took up the Chairmanship from September 2004 to August 2005.

As the term of office tenure was changed from one year to two years at the annual general meeting of the Association held on 27 August 2003, South China Securities Limited remained as Chairman until the end of August 2005.

During the year, the Association continued its effort in promoting an efficient and quality online securities and futures trading environment so as to attract more investors to trade through online means. In fact, there was significant growth in the online stock investors during the past years. According to the “Retail Investor Survey 2004” conducted by the Hong Kong Exchange and Clearing Limited, proportion of the online investors among stock investors had grown substantially from 7% in November 2000 to 26% in October 2004.

In order to streamline industry practitioners’ operation process and to minimize operating cost, the Association spent extra effort in discussing with the Exchange regarding the charges and compliance process in relation to the provision of market data. These discussions did eventually trigger off the revision of the following data vending policies by the Exchange:

1.      Alternate Quote Meter Audit Arrangement for Usage Based Services

2.     Revised Policy on Demonstration and Development Units

3.     New Free Trial Unit Policy

On the membership front, BOCI Online changed its membership with HKAOB to another entity “BOCI Securities Limited” in April 2005. Dao Heng Securities Limited was recruited as a new member on 13 July 2005. The number of members was increased from 14 to 15.

With regards to activities in fulfilling the Association’s objectives during the period, we have:

1.      joined “金融服務界關注組”, organized by the Hon Chim Pui Chung;

2.     submitted the following proposals and views to the authorities:

3.     attended the following events:

4.      participated in the “Forum on HK as an International Asset Management Centre: Challenges and Opportunities” organized by Financial Services and the Treasury Bureau on 9 December 2004 with Ronny Tang and Joey Lo (Core Pacific – Yamaichi) as representatives;

5.      participated in the 10^th Asia Securities Forum in Kyoto, Japan from 27 – 29 March 2005, with Peter Wong (Tai Fook), Douglas Chen(SHK), Lim Wah Sai (Phillip) and Nelson Ying (Tai Fook) as representatives. 28 delegates from the member countries (regions) in Asia and Oceania participated in the Forum. The Association joined the panel discussion of “Structural Change in the Securities Industry” with a speech on “New Landscape and Opportunities of Online Trading” delivered by Peter Wong (Tai Fook);

6.      organized the following two briefings for members:

7.      decided that the Association would participate in Hong Kong Financial Services Expo, Shanghai organized by HKTDC as supporting organization; and

8.      agreed to proceed with the incorporation of HKAOB, which should be completed in September 2005.

This has been a year with lots of activities for the Association. I am sure that the coming years will be even more vibrant. I, therefore, would like to take the opportunity to thank all those who contributed to the Association and sincerely hope that you will give your unreserved support.

Steve Chan
Chairman
31 August 2005

Meetings Attended

Consultation Papers Responded