Capitalization Of Hong Kong Exchange And Clearing Limited And Conflict Between Its Roles Of Commercial Entity With Public Duties

Hong Kong Exchange and Clearing Limited (HKEx, Stock Code: 0388) is the holding company of The Stock Exchange of Hong Kong Limited, Hong Kong Futures Exchange Limited and Hong Kong Securities Clearing Company Limited. HKEx was listed in June 2000 following the integration of Hong Kong's securities and derivatives markets. As a market-driven organization, answerable to its shareholders, HKEx competes vigorously for opportunities in the region and aims at maximizing its profits.In its role as the operator and frontline regulator of the central securities and derivatives marketplace in Hong Kong, HKEx is committed to performing its public duty to ensure orderly and fair markets and that risks are managed prudently, consistent with the public interest and in particular, the interests of the investing public.As a commercial entity with public duties, HKEx has a potential conflict between its roles. This dissertation focuses on how HKEx's operations are organized into focused units, controlled by management and directors, and consider the broader interests of the market, so that it can reduce any conflict in between roles. In addition, this thesis studies thoroughly concrete application of the mode in HKEx as how the regulatory framework and rules are being set up and how corporate governance is being addressed in Hong Kong's securities and derivatives market.The creative of this thesis provides an in-depth study of HKEx and tries to find out the problems of controlling and monitoring system in Hong Kong's securities and derivatives market. Through the study of HKEx, development trends of implementing corporate governance and responsibilities in all over the world are also being discussed.