Interim report reveals surplus 5.4 times higher
The stock exchange has reported an unaudited net surplus of $354.9 million for the six months to December last year, 5.4 times the $64.7 million surplus for the same period in 1996.
The exchange's interim report also revealed it had conducted a special review of broker members heavily involved in the trade of H shares and red chips.
'The review concentrated on the adequacy of members' credit control measures and the soundness of their clients' financial background,' chief executive Alec Tsui Yiu-wa said.
'Operational weaknesses were detected in some members who were advised on ways to correct them.' Turnover for the period was $670.9 million, up 120 per cent from $303.9 million for the corresponding period in 1996.
'The growth was attributed to high trading volume, new listings and increased sales of stock trading information,' Mr Tsui said.
The high turnover last year increased transaction levy income to $323.94 million for the interim period, against $119.04 million for the same period in 1996.
Income from the sale of stock information was $107 million, against $40 million previously.
Income from listing fees was $119.04 million, against $81 million in 1996.
Operating expenses were $223.2 million, against $193.4 million for the same period in 1996. The increase was mainly due to the upgrade of trading capacity to $50 billion a day.
