1. 2005 Annual Results “Record-setting Year, Record Results” Paul Chow Chief Executive, Hong Kong Exchanges and Clearing Limited 8 March 2006

2. 2 Annual Results Announcement Record Market Activities

3. 3 Annual Results Announcement Key Market Statistics

4. 4 Annual Results Announcement Record Performance from Record Market Turnover and Stringent Cost Control

5. 5 Annual Results Announcement Record Profit Since Merger

6. 6 Annual Results Announcement Income Rose in Line with Market Activities

7. 7 Annual Results Announcement 2005 Investment Income

8. 8 Annual Results Announcement Cost Pressure Mitigated by Cost Control

9. 9 Annual Results Announcement First Half vs Second Half

10. 10 2006 Major Initiatives – Building a Quality Market Enhance Listing Regulation  Revamp listing decision-making structure (phase one in May)  Continue review of GEM  Further enhance corporate governance  Support establishment of Financial Reporting Council  Implement abolition of paid announcements and strengthen issuer information on HKEx website (by year-end)  Continue work towards the establishment of statutory listing requirements  Establish China Affairs Team

11. 11 2006 Major initiatives - Building a Quality Market Strengthen Market Infrastructure  Upgrade software of HKATS Network Gateways (Q2-Q3)  Implement phase 2 of network consolidation with migration of CCASS network to SDNet (June)  Replace hardware and software of AMS/3 Open Gateway and Multi-Work Station (Q2/2006 – Q1/2007)  Feasibility study and prepare for migration of AMS/3 for a higher version of server technology (Q3 – Q4)

12. 12 2006 Major Initiatives - Building a Quality Market Service Market Users  Launch and develop Callable Bull/Bear Contracts market (H1)  Strengthen derivative warrant market, including web-based resource centre (Q2)  Review market-maker model for derivatives market  Introduce long-dated index options (March)  Expand combo order functions to HSI Options and review possible introduction of tailor-made combo orders in derivatives market (March)  Reduce trading spreads of shares traded below $30 (phase 2 in July)  Complete Trading Hall renovation with Exchange Exhibition Hall opening in late April

13. 13 2006 Major initiatives - Building a Quality Market Service Market Users  Harmonise collateral policies of the three clearing houses  Explore Third Party Clearing  Further enhance CCASS nominee services  Study expanding admission of Investor Participants to CCASS

14. 14 Thank you