2022-03-14 04:00Financial Performance - In 2021, Hong Kong Exchanges and Clearing Limited (HKEX) achieved record high revenue and profit despite challenging macroeconomic conditions and ongoing pandemic impacts [4]. - Revenue and other income for 2021 reached HKD 20,950 million, an increase of 9% compared to 2020 [10]. - Main business revenue rose by 10% to HKD 20,103 million, driven by record average daily trading volumes [10]. - EBITDA for 2021 was HKD 16,269 million, reflecting an 11% increase from 2020, with an EBITDA margin of 78% [10]. - Shareholders' profit attributable increased by 9% to HKD 12,535 million, marking a new high [10]. - The total revenue and other income for the group reached HKD 21 billion in 2021, an increase of 9% compared to 2020, leading to a record profit attributable to shareholders of HKD 12.5 billion, also up by 9% [19]. - The company reported a significant increase in revenue, achieving a total of $1.5 billion, representing a 20% year-over-year growth [46]. - The company reported a significant increase in revenue, achieving a total of $1.2 billion, representing a 15% year-over-year growth [51]. - Total revenue and other income amounted to HKD 3,436 million in 2021, reflecting a 6% increase from HKD 3,241 million in 2020 [96]. - Total revenue for 2021 reached 20,950 million, an increase of 9.2% from 19,190 million in 2020 [185]. Trading Volume and Market Activity - The trading volume for the cash market, Stock Connect, and Bond Connect reached new highs, offsetting the impact of low interest rates on investment income [4]. - The average daily trading volume in the cash market increased significantly, contributing to overall revenue growth [4]. - Average daily turnover of equity securities on the exchange reached HKD 146.6 billion, a 32% increase from 2020 [11]. - The average daily turnover of the Stock Connect program reached HKD 120.1 billion, up 32% year-on-year [11]. - In 2021, the average daily trading volume reached HKD 166.7 billion, a 29% increase from 2020, setting a new record [28]. - The average daily trading volume for bond connect Northbound reached RMB 26.6 billion, a 34% increase from 2020 [28]. - The average daily trading volume of Hong Kong stock ETFs nearly doubled from HKD 2.8 billion in 2020 to HKD 5.4 billion in 2021 [37]. - The average daily trading volume of ETPs (including ETFs and leveraged and inverse products) increased by 20% to HKD 7.7 billion in 2021, compared to HKD 6.4 billion in 2020 [37]. - The average daily trading volume of derivatives contracts increased by 26% in 2021 compared to 2020 [68]. - The average daily trading amount for stock products reached 166.7 billion HKD in 2021, a 29% increase compared to 2020 [77]. Product Development and Innovation - HKEX received numerous listing applications and launched new listing regimes for Special Purpose Acquisition Companies (SPACs) and overseas issuers, enhancing its product offerings [4]. - HKEX introduced various new products, including Hang Seng Tech Index options and new cash-settled futures contracts on LME, to diversify its offerings [6]. - The company launched the first A-share derivative product, the MSCI China A50 Connect Index Futures, enhancing product offerings in the market [18]. - The company plans to introduce non-HKD denominated futures and options trading and settlement services during public holidays in 2022 [22]. - The launch of the MSCI China A50 Connect Index Futures in October 2021 expanded the Chinese A-share ecosystem in Hong Kong, with significant market response on its first trading day [32]. - The company continues to focus on market connectivity and product innovation to maintain its competitive position in the global capital markets [18]. - The Hong Kong Stock Exchange has expanded its product ecosystem, including the introduction of new MSCI China A50 index futures and small USD/CNY futures contracts [33]. - The launch of the new FINI platform in Q4 2022 is expected to simplify and digitize the IPO settlement process, improving the situation of large amounts of pre-paid funds being frozen during subscription periods [38]. Sustainability and Corporate Social Responsibility - The company is committed to achieving net-zero emissions by 2050 and has joined the Glasgow Financial Alliance for Net Zero [8]. - HKEX launched the ESG Academy and various community projects to enhance its corporate social responsibility initiatives [8]. - The company joined the Glasgow Financial Alliance for Net Zero and the Net Zero Financial Service Providers Alliance, committing to sustainable development goals [21]. - The Hong Kong Stock Exchange Charity Fund raised HKD 139 million in 2021 to support various community projects and charities [23]. - The company published the "Net Zero Emissions Guide" to assist issuers and other businesses in their journey towards net-zero emissions [38]. - The company is committed to expanding its sustainable finance ecosystem, with continuous growth in the number of GSS bonds listed [38]. - The total issuance of green/ESG-related bonds reached HKD 282.6 billion in 2021, compared to HKD 66.7 billion in 2020 [81]. - The Sustainable and Green Exchange (STAGE) had 87 products focused on sustainability by December 31, 2021, reflecting strong market support since its establishment [82]. Governance and Management - The board consists of 13 directors, with 12 being independent directors and 4 being female, aiming for gender equality [188]. - The board and committees held a total of 48 meetings in 2021, demonstrating active governance practices [188]. - The company adhered to all provisions of the Corporate Governance Code effective during 2021, with specific exceptions noted [189]. - The board's composition includes a diverse range of skills and experiences, enhancing its effectiveness and efficiency [195]. - The company emphasizes the importance of good governance and effective board performance for overall corporate health [198]. - The establishment of the International Advisory Committee and the China Business Advisory Committee aims to enhance the board's insights on global and Chinese financial markets [199]. - An internal review of the board's performance was conducted in 2021, with results indicating effective operation and good governance across various committees [200]. Future Outlook and Strategic Initiatives - The company is focused on expanding its role as a "super connector" in the rapidly evolving global capital markets [4]. - The company plans to leverage its position as a "super connector" to participate in technology and industry development opportunities in the future [66]. - The company is expanding its market presence in Asia, targeting a 30% increase in market share by the end of the year [46]. - The company is exploring potential acquisitions to enhance its product offerings, with a budget of $500 million allocated for this purpose [48]. - A new strategic partnership has been established, expected to generate $200 million in additional revenue streams [49]. - The company has set a future outlook with a revenue guidance of $6 billion for the upcoming fiscal year, indicating a growth of 20% [55]. - The company plans to increase its workforce by 10% to support growth initiatives and new projects [55]. - The management team emphasized the importance of risk management, with a focus on mitigating potential market volatility impacts [61].