26.     Hong Kong's development as an international financial centre during the past year was most encouraging.  Hong Kong ranked first in Asia and third in the world last year in terms of capital raised, with total Initial Public Offering (IPO) and post-IPO equity funds reaching some $265 billion, out-performing the London and Tokyo Stock Exchanges.  Market capitalisation also hit a new high of about $6,650 billion, nearly 50 per cent above the pre-reunification level.  In Hong Kong , Mainland enterprises have raised over $900 billion since the introduction of H-shares in 1993.  As at the end of last year, a total of 304 Mainland enterprises had listed here, 22 per cent more than in 2003 and representing over a quarter of the total number of listed companies in Hong Kong.  These enterprises accounted for about 30 per cent of our total stock market capitalisation.  Trading in their shares last year constituted half of our total market turnover.  In 2004 alone, 44 Mainland enterprises raised funds through listing in Hong Kong .  The vast majority of Mainland enterprises listed outside the Mainland are quoted on our stock exchange.  Of those listed in Hong Kong, only a minority are also listed in other overseas markets, and more than 70 per cent of their trading is conducted in Hong Kong .  This demonstrates that Hong Kong has further consolidated its position as the premier international capital formation centre for the Mainland.

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