1. 2006 Annual Results “Strong Investor Confidence, Record Results” Paul Chow Chief Executive, Hong Kong Exchanges and Clearing Limited 8 March 2007

2. 2 Key Market Statistics

3. 3 Key Market Statistics Since Merger

4. 4 New Records

5. 5 Performance of Mainland Enterprises

6. 6 Financial Highlights

7. 7 Record Profit Since Merger

8. 8 Breakdown of income

9. 9 Investment Income

10. 10 Breakdown of expenses

11. 11 Second and First Half Year Comparison

12. 12 Trading and Clearing  Introduce tender service for sale and purchase of Trading Rights  Study further Mainland-related and RMB-denominated products  Explore new product and service areas  Address barriers to securities and derivatives market trading  Consult market on Closing Auction in securities market  Further enhance the Stock Segregated Account with Statement service (second phase) and the Investor Participant service  Introduce Third Party Clearing to strengthen the securities market infrastructure Selected Key Initiatives in 2007

13. 13 Selected Key Initiatives in 2007 (cont’d) Listing  Conduct market consultation on proposals for GEM  Support SFC/Government in implementing “statutory backing”  Facilitate listings by a greater range of overseas issuers  Implement the new listed company information dissemination model

14. 14 IT  Implement AMS/3 enhancements  Implement last phase of network consolidation (AMS/3)  Replace and upgrade CCASS/3 Mainframe and Middle-Tier Systems  Upgrade HKATS/DCASS to Release 19.x  Conduct derivatives market system capacity planning and upgrade  Explore consolidation of data centres  Review HKEx IT systems for possible efficiency improvement Selected Key Initiatives in 2007 (cont’d)

15. 15 Business Development  Continue to organise listing promotion events  Continue to provide training programmes for issuers Corporate  Review fee structure  Work towards consolidation of HKEx offices  Strengthen HKEx accountability regime  Further develop HKEx MIS – finance and customer Selected Key Initiatives in 2007 (cont’d)

16. 16 Thank you