中文 CONTACT US

Chairman’s Report (2006-2007) by Mr Douglas Chen

Date : 2007-08-29

It is with great pleasure that I present the 2006/2007 Chairman's Report for The Hong Kong Association of Online Brokers Limited ("HKAOB"), during which period I represented SHK Online Limited and served as Chairman.

I was elected the Chairman of HKAOB at the Association's regular Executive Committee Meeting held on 8 November, 2006, as the successor of Mr. Steve Chan of South China Securities Limited, who vacated the HKAOB Chairmanship in October 2006. The Association wishes to thank Mr. Steve Chan, who had served as its Chairman from 2004, and under whose stewardship HKAOB has grown not only in membership, but also in its visibility and importance within the local finance community. The Association is delighted to have Mr. Steve Chan returned to HKAOB as the representative of OSK Asia Securities Limited in June 2007.

The period of 2006/2007 was indeed a significant time for HKAOB, as well as the local broking community. During this time, we witnessed substantial growth in activities on the local Hong Kong Exchange, with the total market capitalization on the bourse reaching HK$15.9 trillion as of June 30, 2007, and daily market turnover averaging HK$59.2 billion in the first half of 2007, which represented increases of 62% and 82% respectively, compared to the same period a year ago. On a number of trading days, the market recorded record daily turnovers exceeding HK$100 billion.

Against this very encouraging backdrop, the convenience and availability of self-directed online trading became quite apparent to the retail investors at large, and many have embraced the online channel as the means of participating in the local stock market. As a result, many of HKAOB members were able to register significant growth in account base, number of trades and turnover in their normal course of business.

Despite the very hectic business activities, I am pleased to report that the members of HKAOB remained fully committed to the overall development of the Associations and the local online trading regime, and HKAOB has continued the pursuit of its stated objectives by initiating or participating in many industry-wide activities.

The highlights of the various activities or tasks undertaken by or pertaining to the HKAOB during the 2006/2007 period are:

- Following the formal formation of new "The Hong Kong Association of Online Brokers Limited" entity, the former entity of Hong Kong Association of Online Brokers was de-registered in November 2006;

- Two new full members, Polaris Securities (Hong Kong) Limited and OSK Asia Securities Limited joined the Association in November 2006 and June 2007 respectively. The number of members for HKAOB now stands at 19. The number of Executive Committee members remains at 14;

- HKAOB presented its views to the market regulators and authorities on a number of matters that are relevant or important to the local online trading community, including:

  • In November 2006, HKAOB responded to the Securities and Futures Commission ("SFC") in discussions relating to the matter of online securities fraud and hackers;
  • Representatives from the HKAOB attended the Hong Kong Economic Forum held in December 2006. The event was a forum to discuss the overall macro economic development of Hong Kong, as well as the outlook for the co-operation between Hong Kong and China. In addition to practitioners in the finance and other related fields, it was also attended by representatives from the Government, as well as the various regulators and governing bodies;
  • In February 2007, HKAOB prepared and submitted letters to the Chairman of the SFC and the Government's Financial Services and Treasury Bureau ("FSTB"), seeking to address the issue of potentially unethical practices of some banks which are potentially against the interest of the local online brokers. A reply to our letter was received from the Chairman of the SFC subsequently;
  • Representatives of the HKAOB were part of the delegates that attended the Financial Services Delegation visit to Beijing in May 2007. The delegation was organized and led by the Government's FSTB office;
  • Members of the HKAOB met with representatives from the Singapore Stock Exchange ("SGX") in May 2007 and held discussion relating to the SGX's marketing effort in Hong Kong and their wish to collaborate with Hong Kong's online brokers. Subsequent to the meeting, a number of HKAOB member firms joined and took part in SGX's marketing campaign in Hong Kong.

- In addition to the events above, and as part of HKAOB's ongoing effort to maintain open and regular dialogs with the relevant governing bodies and authorities, a number of luncheon gatherings and informal cocktail drinks sessions were held with senior officials and representatives from the SFC, the HKEx, as well as other trade associations involved in the local stock broking activities. Matters relating to both the overall market development and daily operational matters were discussed with the relevant bodies and authorities during these gatherings.

In summary, the past 12 months has been an exciting time for both the local retail investors and online brokers alike. With the ever closer ties between Hong Kong and China in the field of finance, it is very likely that the local stock market will continue to flourish and trading activities continue to grow. And as the online trading channel continues to gain prominence and acceptance among the local retail investors, the HKAOB believes it will have an even more important role to play in facilitating the ongoing development of this very important trading channel, as well as in anticipating and meeting the challenges that lie ahead. The HKAOB will undoubtedly continue its effort in promoting the growth of the online channel, both for the betterment of its members, as well as the overall market development. In closing, I would like to express my heart-felt gratitude to all our members for their dedication and selfless hard work in contributing to the success of HKAOB during this particularly busy and exciting time.

Douglas Chen
Chairman
29 August 2007

 

Back to Chairman Report

 

Powered by
QPI logo
Sitemap