00388FS2021

Pursuant to Chapter 38 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong
Kong Limited, the Securities and Futures Commission regulates Hong Kong Exchanges and Clearing Limited
(HKEX) in relation to the listing of its shares on The Stock Exchange of Hong Kong Limited. The Securities
and Futures Commission takes no responsibility for the contents of this document, makes no representation
as to its accuracy or completeness, and expressly disclaims any liability whatsoever for any loss howsoever
arising from or in reliance upon the whole or any part of the contents of this document.
The financial information relating to the years ended 31 December 2021 and 2020 included in this document
does not constitute the statutory annual consolidated financial statements of HKEX for those years but is
derived from those financial statements. Further information relating to these statutory financial statements
required to be disclosed in accordance with section 436 of the Companies Ordinance is as follows:
HKEX has delivered the financial statements for the year ended 31 December 2020 to the Registrar of
Companies as required by section 662(3) of, and Part 3 of Schedule 6 to, the Companies Ordinance and will
deliver the financial statements for the year ended 31 December 2021 in due course.
HKEX’s auditor has reported on the consolidated financial statements for both years. The auditor’s reports
were unqualified, did not include a reference to any matters to which the auditor drew attention by way of
emphasis without qualifying its reports, and did not contain a statement under sections 406(2), 407(2) or (3)
of the Companies Ordinance.
（Incorporated in Hong Kong with limited liability）

（Stock Code: 388）
Consolidated Financial Statements
For the year ended 31 December 2021
As at 24 February 2022, the board of directors of HKEX comprises 12 Independent Non-

executive Directors, namely Mrs Laura May-Lung CHA (Chairman), Mr Nicholas Charles
ALLEN, Mr Apurv BAGRI, Mr CHEAH Cheng Hye, Ms CHEUNG Ming Ming, Anna, Mrs CHOW
WOO Mo Fong, Susan, Mr Rafael GIL-TIENDA, Mr HUNG Pi Cheng, Benjamin, Ms LEUNG
Nisa Bernice Wing-Yu, Mr LEUNG Pak Hon, Hugo, Mr YIU Kin Wah, Stephen and Mr ZHANG
Yichen, and one Executive Director, Mr Alejandro Nicolas AGUZIN, who is also the Chief
Executive of HKEX.
1 FOR THE YEAR ENDED 31 DECEMBER 2021

CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2021
(Financial figures are expressed in Hong Kong Dollar)
2021 2020
Note $m $m
Trading fees and trading tariffs 5(a) 7,931 6,959
Clearing and settlement fees 5,214 4,355
Stock Exchange listing fees 5(b) 2,185 1,899
Depository, custody and nominee services fees 1,543 1,264
Market data fees 1,034 953
Other revenue 5(c) 1,564 1,405
Revenue 5 19,471 16,835
Investment income 1,351 2,577
Interest rebates to Participants (47) (349)
Net investment income 6 1,304 2,228
HKEX Foundation donation income 7 139 106
Sundry income 8 36 21
Revenue and other income 20,950 19,190
Less: Transaction-related expenses 9 (152) (110)
Revenue and other income less transaction-related expenses 20,798 19,080
Operating expenses
Staff costs and related expenses 10 (2,948) (2,967)
Information technology and computer maintenance expenses 11 (715) (635)
Premises expenses (117) (119)
Product marketing and promotion expenses (116) (81)
Professional fees (157) (151)
HKEX Foundation charitable donations (105) (112)
Other operating expenses 12 (371) (374)
(4,529) (4,439)
EBITDA 16,269 14,641
Depreciation and amortisation (1,354) (1,197)
Operating profit 13 14,915 13,444
Finance costs 14 (154) (181)
Share of profits less losses of joint ventures 80 69
Profit before taxation 14,841 13,332
Taxation 17 (2,343) (1,845)
Profit for the year 12,498 11,487
Profit/(loss) attributable to:
Shareholders of HKEX 46 12,535 11,505
Non-controlling interests 27(a)(i) (37) (18)
Basic earnings per share 18(a) $9.91 $9.11
Diluted earnings per share 18(b) $9.89 $9.09
The notes on pages 8 to 96 are an integral part of these consolidated financial statements.
Details of dividends are set out in note 19 to the consolidated financial statements.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
2021 2020
Note $m $m
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Currency translation differences of foreign subsidiaries 2(e)(iii) 104 (29)
Cash flow hedges 44(a) (2) (6)
Changes in fair value of financial assets measured at fair value
through other comprehensive income, net of tax 44(b) (8) 28
Other comprehensive income/(loss) 94 (7)
Total comprehensive income 12,592 11,480
Total comprehensive income/(loss) attributable to:
Shareholders of HKEX 12,626 11,490
Non-controlling interests (34) (10)
Total comprehensive income 12,592 11,480

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT 31 DECEMBER 2021
At 31 Dec 2021 At 31 Dec 2020
Current Non-current Total Current Non-current Total
Note $m $m $m $m $m $m
Assets
Cash and cash equivalents 20,21 181,361 - 181,361 157,996 - 157,996
Financial assets measured at fair value
through profit or loss 20,22 99,915 946 100,861 100,081 516 100,597
Financial assets measured at fair value
through other comprehensive income 20,23 9,755 - 9,755 7,942 - 7,942
Financial assets measured at amortised cost 20,24 51,302 526 51,828 62,589 99 62,688
Accounts receivable, prepayments and deposits 26 32,717 21 32,738 47,059 21 47,080
Tax recoverable 19 - 19 26 - 26
Interests in joint ventures 28 - 244 244 - 164 164
Goodwill and other intangible assets 29 - 18,972 18,972 - 18,737 18,737
Fixed assets 30 - 1,605 1,605 - 1,657 1,657
Right-of-use assets 31 - 1,896 1,896 - 2,193 2,193
Deferred tax assets 41(c) - 25 25 - 26 26
Total assets 375,069 24,235 399,304 375,693 23,413 399,106
Liabilities and equity
Liabilities
Financial liabilities at fair value through profit or loss 32 91,424 - 91,424 92,884 - 92,884
Margin deposits, Mainland security and settlement
deposits, and cash collateral from Clearing
Participants 20,33 203,536 - 203,536 187,008 - 187,008
Accounts payable, accruals and other liabilities 34 28,335 - 28,335 42,974 - 42,974
Deferred revenue 35 1,100 354 1,454 1,049 371 1,420
Taxation payable 1,153 - 1,153 1,174 - 1,174
Other financial liabilities 36 513 - 513 48 - 48
Participants’ contributions to Clearing House Funds 20,37 19,182 - 19,182 20,439 - 20,439
Lease liabilities 38 299 1,760 2,059 304 2,054 2,358
Borrowings 39 340 86 426 340 83 423
Provisions 40 82 98 180 114 98 212
Deferred tax liabilities 41(c) - 1,132 1,132 - 930 930
Total liabilities 345,964 3,430 349,394 346,334 3,536 349,870
Equity
Share capital 42 31,896 31,891
Shares held for Share Award Scheme 42 (901) (485)
Employee share-based compensation reserve 43 306 232
Hedging and revaluation reserves 44 15 25
Exchange reserve 2(e)(iii) (117) (218)
Designated reserves 45 623 628
Reserve relating to written put options to non-
controlling interests (369) (369)
Retained earnings 46 18,173 17,214
Equity attributable to shareholders of HKEX 49,626 48,918
Non-controlling interests 27(a)(i) 284 318
Total equity 49,910 49,236
Total liabilities and equity 399,304 399,106
Net current assets 29,105 29,359
Approved by the Board of Directors on 24 February 2022
Laura M CHA Alejandro Nicolas AGUZIN

Director Director

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Attributable to shareholders of HKEX
Share capital Reserve
and shares Employee Hedging relating to
held for share-based and written
Share Award compensation revaluation Designated put options to Retained Non-
Scheme reserve reserves Exchange reserves non-controlling earnings controlling Total
(note 42) (note 43) (note 44) reserve (note 45) interests (note 46) Total interests equity
$m $m $m $m $m $m $m $m $m $m
At 1 Jan 2020 29,679 250 3 (181) 587 (369) 14,204 44,173 328 44,501
Profit for the year - - - - - - 11,505 11,505 (18) 11,487
Other comprehensive income - - 22 (37) - - - (15) 8 (7)
Total comprehensive income - - 22 (37) - - 11,505 11,490 (10) 11,480
Total transactions with shareholders of HKEX,
recognised directly in equity:
- 2019 second interim dividend at $2.99 per share - - - - - - (3,761) (3,761) - (3,761)
- 2020 first interim dividend at $3.71 per share - - - - - - (4,692) (4,692) - (4,692)
- Unclaimed HKEX dividends forfeited (note 34(a)) - - - - - - 21 21 - 21
- Shares issued in lieu of cash dividends 1,428 - - - - - - 1,428 - 1,428
- Shares purchased for Share Award Scheme (31) - - - - - - (31) - (31)
- Vesting of shares of Share Award Scheme 330 (299) - - - - (31) - - -
- Employee share-based compensation benefits - 281 - - - - - 281 - 281
- UK tax relating to Share Award Scheme - - - - - - 9 9 - 9
- Transfer of reserves - - - - 41 - (41) - - -
1,727 (18) - - 41 - (8,495) (6,745) - (6,745)
At 31 Dec 2020 31,406 232 25 (218) 628 (369) 17,214 48,918 318 49,236

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)
Attributable to shareholders of HKEX
Share capital Reserve
and shares Employee Hedging relating to
held for share-based and written
Share Award compensation revaluation Designated put options to Retained Non-
Scheme reserve reserves Exchange reserves non-controlling earnings controlling Total
(note 42) (note 43) (note 44) reserve (note 45) interests (note 46) Total interests equity
$m $m $m $m $m $m $m $m $m $m
At 1 Jan 2021 31,406 232 25 (218) 628 (369) 17,214 48,918 318 49,236
Profit for the year - - - - - - 12,535 12,535 (37) 12,498
Other comprehensive income - - (10) 101 - - - 91 3 94
Total comprehensive income - - (10) 101 - - 12,535 12,626 (34) 12,592
Total transactions with shareholders of HKEX,
recognised directly in equity:
- 2020 second interim dividend at $4.46 per share - - - - - - (5,646) (5,646) - (5,646)
- 2021 first interim dividend at $4.69 per share - - - - - - (5,934) (5,934) - (5,934)
- Unclaimed HKEX dividends forfeited (note 34(a)) - - - - - - 12 12 - 12
- Shares purchased for Share Award Scheme (681) - - - - - - (681) - (681)
- Vesting of shares of Share Award Scheme 270 (250) - - - - (20) - - -
- Employee share-based compensation benefits - 324 - - - - - 324 - 324
- UK tax relating to Share Award Scheme - - - - - - 7 7 - 7
- Transfer of reserves - - - - (5) - 5 - - -
(411) 74 - - (5) - (11,576) (11,918) - (11,918)
At 31 Dec 2021 30,995 306 15 (117) 623 (369) 18,173 49,626 284 49,910

CONSOLIDATED STATEMENT OF CASH FLOWS
2021 2020
Note $m $m
Cash flows from principal operating activities
Net cash inflow from principal operating activities 47(a) 13,897 11,956
Cash flows from other operating activities
Net (payments to)/redemption from external fund managers for
(purchases)/sales of financial assets measured at fair value through
profit or loss (1,557) 2,813
Net cash inflow from operating activities 12,340 14,769
Cash flows from investing activities
Payments for purchases of fixed assets and intangible assets (1,070) (1,351)
Net decrease/(increase) in financial assets of Corporate Funds:
Decrease/(increase) in time deposits with original maturities more than
three months 3,276 (5,850)
Proceeds received upon maturity of financial assets measured at
amortised cost (excluding time deposits) 810 207
Payments for purchases of financial assets measured at amortised cost
(excluding time deposits) (429) (384)
Payments for financial assets measured at fair value through profit or
loss (349) (160)
Interest received from financial assets measured at fair value through other
comprehensive income 38 56
Net cash inflow/(outflow) from investing activities 2,276 (7,482)
Cash flows from financing activities
Purchases of shares for Share Award Scheme (681) (31)
Payments of other finance costs (72) (87)
Dividends paid to shareholders of HKEX (11,527) (6,983)
Lease payments 47(b), 47(c)
- Capital elements (310) (284)
- Interest elements (79) (89)
Net cash outflow from financing activities (12,669) (7,474)
Net increase/(decrease) in cash and cash equivalents 1,947 (187)
Cash and cash equivalents at 1 Jan 10,442 10,603
Exchange differences on cash and cash equivalents 9 26
Cash and cash equivalents at 31 Dec 12,398 10,442
Analysis of cash and cash equivalents
Cash on hand and balances and deposits with banks and short-term
investments of Corporate Funds 21 12,900 10,753
Less: Cash reserved for supporting Skin-in-the-Game and default fund
credits of clearing houses 21(b) (502) (311)
12,398 10,442
(a) “Cash flows from principal operating activities” is a non-Hong Kong Financial Reporting Standard (non-
HKFRS) measure used by management for monitoring cash flows of the Group (defined in note 1) and
represents the cash flows generated from the trading and clearing operations of the four exchanges and
five clearing houses and ancillary services of the Group. This non-HKFRS measure may not be
comparable to similar measures presented by other companies. Cash flows from principal operating
activities and cash flows from other operating activities together represent cash flows from operating
activities as defined by Hong Kong Accounting Standard (HKAS) 7: Statement of Cash Flows.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Financial figures are expressed in Hong Kong Dollar unless otherwise stated)
1. General Information
Hong Kong Exchanges and Clearing Limited (HKEX or the Company) and its subsidiaries (collectively, the
Group) own and operate the only stock exchange and futures exchange in Hong Kong and their related
clearing houses, a clearing house for clearing over-the-counter derivatives contracts in Hong Kong, an
exchange and a clearing house for the trading and clearing of base, ferrous and precious metals futures
and options contracts operating in the United Kingdom (UK), and a commodity trading platform in the
Mainland.
HKEX is a limited company incorporated and domiciled in Hong Kong. The address of its registered office
is 8th Floor, Two Exchange Square, 8 Connaught Place, Central, Hong Kong.
These consolidated financial statements were approved for issue by the Board of Directors (Board) on 24
February 2022.
2. Principal Accounting Policies
Apart from the accounting policies presented within the corresponding notes to the consolidated financial
statements, other principal accounting policies applied in the preparation of these consolidated financial
statements are set out below. These policies have been consistently applied to all the years presented,
unless otherwise stated.
(a) Statement of compliance

These consolidated financial statements have been prepared in accordance with Hong Kong Financial
Reporting Standards (HKFRSs) issued by the Hong Kong Institute of Certified Public Accountants
(HKICPA), and accounting principles generally accepted in Hong Kong. These consolidated financial
statements also comply with the applicable disclosure requirements of the Rules Governing the Listing
of Securities on The Stock Exchange of Hong Kong Limited (Main Board Listing Rules) and the
applicable requirements of the Hong Kong Companies Ordinance (Chapter 622).
(b) Basis of preparation
These consolidated financial statements have been prepared under the historical cost convention,
as modified by the revaluation of certain financial assets and financial liabilities measured at fair
value.
The preparation of consolidated financial statements requires the use of certain critical accounting
estimates, and requires management to exercise its judgement when applying the Group’s accounting
policies. Areas involving significant estimates and judgement are disclosed in note 3.
Adoption of new/revised HKFRSs
In 2021, the Group has adopted the following amendment to HKFRSs which is pertinent to the Group’s
operations:
Amendments to HKFRS 16 Leases: COVID-19-Related Rent Concessions1

1 Effective for accounting periods beginning on or after 1 June 2020
The adoption of the amendment did not have any financial impact on the Group.

2. Principal Accounting Policies (continued)
(b) Basis of preparation (continued)
New/revised HKFRSs issued before 31 December 2021 but not yet effective and not early adopted
The Group has not applied the following amendments to HKFRSs which were issued before 31
December 2021 and are pertinent to its operations but not yet effective:
Amendments to HKAS 1 Presentation of Financial Statements: Classification of
Liabilities as Current or Non-current3
Amendments to HKAS 1 Presentation of Financial Statements: Disclosure of
Accounting Policies3
Amendments to HKAS 8 Accounting Policies, Changes in Accounting Estimates and
Errors: Definition of Accounting Estimates3
Amendments to HKAS 12 Income Taxes: Deferred Tax related to Assets and
Liabilities arising from a Single Transaction3
Amendments to HKAS 16 Property, Plant and Equipment: Proceeds before Intended
Use2
Amendments to HKAS 37 Provisions, Contingent Liabilities and Contingent Assets:
Onerous Contracts – Cost of Fulfilling a Contract2
Amendments to HKFRS 3 Business combinations: Reference to the Conceptual
Framework2
Amendments to HKFRS 16 Leases: COVID-19-Related Rent Concessions beyond 30
June 20211
Annual Improvements to HKFRSs
2018-2020:
Amendments to HKFRS 9 Financial Instruments: Fees in the “10 per cent” Test for
Derecognition of Financial Liabilities2
Amendments to Illustrative Leases: Lease Incentives2

Examples accompanying
HKFRS 16
1 Effective for accounting periods beginning on or after 1 April 2021

2 Effective for accounting periods beginning on or after 1 January 2022
3 Effective for accounting periods beginning on or after 1 January 2023
The adoption of the amendments to HKFRSs would not have any financial impact on the Group.
There are no other new/revised HKFRSs not yet effective that are expected to have any financial
impact on the Group.
(c) Basis of consolidation
Subsidiaries are entities (including structured entities) over which the Group has control. Subsidiaries
are fully consolidated from the date on which control is transferred to the Group. They are
deconsolidated from the date that control ceases. All material intra-group transactions and balances
have been eliminated on consolidation.
Accounting policies of subsidiaries have been aligned on consolidation to ensure consistency with the
policies adopted by the Group.

2. Principal Accounting Policies (continued)
(d) Impairment of non-financial assets

Assets with an indefinite useful life, which include interests in joint ventures, goodwill and tradenames,
are not subject to amortisation but are tested at least annually for impairment. Assets subject to
amortisation are reviewed for impairment whenever there is any indication that the carrying amount may
not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying
amount exceeds its recoverable amount (i.e., the higher of an asset’s fair value less costs to sell and
value-in-use). Such impairment losses are recognised in the consolidated income statement. An
impairment loss other than goodwill is reversed if the circumstances and events leading to the
impairment cease to exist.
(e) Foreign currency translation
(i) Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the
currency of the primary economic environment in which the entity operates (the functional
currency). The consolidated financial statements are presented in Hong Kong Dollar (HKD),
which is the Company’s functional and presentation currency.
(ii) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange
rates prevailing at the dates of transactions. Foreign exchange gains and losses resulting from
the settlement of such transactions and from the translation at year-end exchange rates of
monetary assets and liabilities denominated in foreign currencies are recognised in the
consolidated income statement. They are deferred in hedging reserve under equity if they relate
to qualifying cash flow hedges (note 44(a)).
Translation differences on non-monetary financial assets that are classified as financial assets
measured at fair value through profit or loss are reported as part of the fair value gain or loss.
(iii) Group companies
The results and financial position of each of the Group’s entities that have a non-HKD functional
currency are translated into HKD as follows:
 assets and liabilities (including goodwill and fair value adjustments arising on the acquisition
of foreign subsidiaries) for each statement of financial position presented are translated at
the closing rate at the end of the reporting period;
 income and expenses for each income statement are translated at the exchange rates
approximating the foreign exchange rates ruling at the dates of the transactions; and
 all resulting currency translation differences are recognised in other comprehensive income in
the exchange reserve under equity.

3. Critical Accounting Estimates and Assumptions
The Group makes estimates and assumptions concerning the future when the consolidated financial
statements are prepared. The resulting accounting estimates may differ from the related actual results.
The estimates and assumptions that have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next financial year are discussed below:
(a) Goodwill and tradenames
The Group tests annually whether goodwill and tradenames have suffered any impairment in
accordance with the accounting policy stated in note 29.
The recoverable amounts of relevant cash generating units (CGUs) and relevant group of CGUs have
been determined based on value-in-use calculations, which are disclosed in note 29. These
calculations require the use of estimates and significant judgement by management, including the
future cash flows expected to arise from the CGUs, discount rates for calculating the present value
and growth rates used to extrapolate cash flow projections beyond the financial forecasts
approved by management.
Changes in facts and circumstances may result in revisions to estimates of recoverable amounts and
to the conclusion as to whether an indication of impairment exists, which could affect the consolidated
income statement in future years.
(b) Valuation of investments
The Group has a significant amount of investments that are not classified as Level 1 investments
under HKFRS 13: Fair Value Measurement. Except for investments in minority stakes in unlisted
companies (note 53(d)(i)), the valuations have been determined based on quotes from market makers,
alternative pricing sources supported by observable inputs, latest transaction prices or redemption
prices provided by fund administrators of collective investment schemes.
At 31 December 2021, the financial assets that were not classified as Level 1 investments (excluding the
base, ferrous and precious metals futures and options contracts cleared through LME Clear Limited
(LME Clear) that did not qualify for netting under the current accounting standards) under HKFRS 13
amounted to $9,762 million (31 December 2020: $9,085 million) which mainly comprised $7,063 million
(31 December 2020: $6,362 million) of investments under collective investment schemes.
As the valuation of investments reflects movements in their estimated fair values, fair value gains or
losses may fluctuate or reverse until the investments are sold, mature or are realised upon redemption.
The potential impact of the fair value change of such investments on the Group’s consolidated income
statement is disclosed in note 53(a)(iv).
(c) Income taxes
The Group is subject to income taxes in the countries in which the Group operates. Judgement is
required in determining the provision for income taxes and deferred taxes. There are transactions and
calculations for which the ultimate tax determination is uncertain. The Group recognises liabilities for
potential tax exposures based on its estimates of whether additional taxes will be due. Where the final tax
outcome of these matters is different from the amounts that were initially recorded, such differences
would impact the income tax and deferred tax provisions in the year in which such determination is made.
If the actual taxation charge differs by 5 per cent from management’s estimates, the Group’s
profit will be affected by $117 million (2020: $92 million).

4. Operating Segments
Accounting Policy
Operating segments are reported in a manner consistent with the internal management reports that are
used to make strategic decisions provided to the chief operating decision-maker. The chief operating
decision-maker, who is responsible for allocating resources and assessing performance of the operating
segments, is the Chief Executive Officer of HKEX. Information relating to segment assets and liabilities is
not disclosed as such information is not regularly reported to the chief operating decision-maker.
The accounting policies of the reportable segments are the same as the Group’s accounting policies.
Taxation charge/credit is not allocated to reportable segments.
The Group has five reportable segments (“Corporate Items” is not a reportable segment). The segments
are managed separately as each segment offers different products and services and requires different
information technology systems and marketing strategies.
The operations in each of the Group’s reportable segments are as follows:
The Cash segment covers all equity products traded on the Cash Market platforms of The Stock
Exchange of Hong Kong Limited (Stock Exchange), the Shanghai Stock Exchange and the Shenzhen
Stock Exchange through Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect
(Stock Connect), sales of market data relating to these products and other related activities. The major
sources of revenue of the segment are trading fees, trading tariffs, listing fees of equity products and
market data fees.
The Equity and Financial Derivatives segment refers to derivatives products traded on the Stock
Exchange and Hong Kong Futures Exchange Limited (Futures Exchange) and other related activities.
These include the provision and maintenance of trading platforms for a range of equity and financial
derivatives products, such as stock and equity index futures and options, derivative warrants (DWs),
callable bull/bear contracts (CBBCs) and warrants, and sales of related market data. The major sources
of revenue are trading fees, trading tariffs, listing fees of derivatives products and market data fees.
The Commodities segment refers to the operations of The London Metal Exchange (LME), which
operates an exchange in the UK for the trading of base, ferrous and precious metals futures and options
contracts, and the operations of Qianhai Mercantile Exchange Co., Ltd. (QME), the commodity trading
platform in the Mainland. It also covers the commodities contracts traded on the Futures Exchange. The
major sources of revenue of the segment are trading fees of commodity products, commodity market data
fees and fees from ancillary operations.
The Post Trade segment refers to the operations of the five clearing houses, which are responsible for
clearing, settlement and custodian activities of the exchanges of the Group and Northbound trades under
Stock Connect, and clearing and settlement of over-the-counter derivatives contracts. Its principal
sources of revenue are derived from providing clearing, settlement, depository, custody and nominee
services and net investment income earned on the Margin Funds and Clearing House Funds.
The Technology segment refers to all services in connection with providing users with access to the
platform and infrastructure of the Group, and services provided by BayConnect Technology Company
Limited (BayConnect). Its major sources of revenue are network, terminal user, data line and software
sub-license fees and hosting services fees.

4. Operating Segments (continued)
Central income (including net investment income of Corporate Funds and HKEX Foundation donation
income) and central costs (including costs of central support functions that provide services to all operating
segments, HKEX Foundation charitable donations and other costs not directly related to any operating
segment) are included as “Corporate Items”.
The chief operating decision-maker assesses the performance of the operating segments principally based
on their EBITDA (defined below).
EBITDA is defined as earnings before interest expenses and other finance costs, taxation, depreciation
and amortisation. It excludes the Group’s share of results of the joint ventures and other non-recurring
costs. EBITDA is a non-HKFRS measure used by management for monitoring business performance. It
may not be comparable to similar measures presented by other companies.
An analysis by operating segment of the Group’s EBITDA, profit before taxation and other selected
financial information (including analysis of revenue by timing of revenue recognition) for the year, is set out
as follows:
2021
Equity and
Financial Post Corporate
Cash Derivatives Commodities Trade Technology Items Group
$m $m $m $m $m $m $m
Timing of revenue recognition:

Point in time 4,494 2,030 1,176 6,656 86 3 14,445
Over time 1,636 1,405 288 731 960 6 5,026
Revenue 6,130 3,435 1,464 7,387 1,046 9 19,471
Net investment income - - - 596 - 708 1,304
HKEX Foundation donation
income - - - - - 139 139
Sundry income 1 1 14 12 4 4 36
Revenue and other income 6,131 3,436 1,478 7,995 1,050 860 20,950
Less: Transaction-related
expenses - (126) - (26) - - (152)
Revenue and other income
less transaction-related
expenses 6,131 3,310 1,478 7,969 1,050 860 20,798
Operating expenses (614) (665) (695) (844) (305) (1,406) (4,529)
Reportable segment
EBITDA 5,517 2,645 783 7,125 745 (546) 16,269
Depreciation and
amortisation (169) (142) (346) (358) (72) (267) (1,354)
Finance costs (12) (12) (8) (66) (2) (54) (154)
Share of profits less
losses of joint ventures 80 - - - - - 80
Reportable segment profit
before taxation 5,416 2,491 429 6,701 671 (867) 14,841
Other segment information:
Interest income - - - 639 - 174 813
Interest rebates to
Participants - - - (47) - - (47)
Other material non-cash item:
Employee share-based
compensation expenses (50) (41) (36) (41) (6) (150) (324)

4. Operating Segments (continued)
2020
Equity and
Financial Post Corporate
Cash Derivatives Commodities Trade Technology Items Group
$m $m $m $m $m $m $m
Timing of revenue recognition:

Point in time 3,460 2,079 1,171 5,667 62 1 12,440
Over time 1,531 1,162 278 575 844 5 4,395
Revenue 4,991 3,241 1,449 6,242 906 6 16,835
Net investment income - - - 1,386 - 842 2,228
HKEX Foundation donation
income - - - - - 106 106
Sundry income - - 5 9 4 3 21
Revenue and other income 4,991 3,241 1,454 7,637 910 957 19,190
Less: Transaction-related
expenses - (85) - (25) - - (110)
Revenue and other income
less transaction-related
expenses 4,991 3,156 1,454 7,612 910 957 19,080
Operating expenses (595) (607) (692) (860) (304) (1,381) (4,439)
Reportable segment
EBITDA 4,396 2,549 762 6,752 606 (424) 14,641
Depreciation and
amortisation (133) (114) (340) (322) (38) (250) (1,197)
Finance costs (13) (13) (8) (84) (2) (61) (181)
Share of profits less
losses of joint ventures 68 1 - - - - 69
Reportable segment profit
before taxation 4,318 2,423 414 6,346 566 (735) 13,332
Other segment information:
Interest income - - - 1,738 - 384 2,122
Interest rebates to
Participants - - - (349) - - (349)
Other material non-cash item:
compensation expenses (40) (40) (42) (46) (7) (106) (281)
(a) Geographical information
The Group’s revenue is derived from its operations in Hong Kong, the UK and Mainland China. Such
information and the Group’s non-current assets (excluding financial assets and deferred tax assets) by
geographical location are detailed below:
Revenue Non-current assets

At At
2021 2020 31 Dec 2021 31 Dec 2020
$m $m $m $m
Hong Kong (place of domicile) 17,220 14,641 5,307 5,374
United Kingdom 2,179 2,124 17,137 17,096
Mainland China 72 70 294 302
19,471 16,835 22,738 22,772
(b) Information about major customers
In 2021 and 2020, the revenue from the Group’s largest customer amounted to less than 10 per cent
of the Group’s total revenue.

5. Revenue
Accounting Policy
Revenue excludes value added tax or other sales tax, and is recognised in the consolidated income
statement on the following basis:
Trading fees and trading tariffs are recognised on a trade date basis.
Stock Exchange listing fees mainly comprise annual listing fees and initial listing fees. Annual listing
fees are recognised on a straight-line basis over the period covered. Initial listing fees are recognised
over time when the services are transferred to the listed companies or issuers of warrants, CBBCs and
other securities.
Clearing and settlement fees arising from trades between Participants transacted on the Stock
Exchange are recognised on the day following the trade day upon acceptance of the trades. Fees for
clearing and settlement of trades transacted on the Shanghai Stock Exchange and Shenzhen Stock
Exchange through Stock Connect (A-shares) are recognised on the trade day upon acceptance of the
trades. Fees for clearing and settlement of trades in respect of base, ferrous and precious metals
futures and options contracts transacted on the LME are recognised on the trade match day. Fees for all
other settlement transactions are recognised upon completion of the settlement.
Custody fees for securities held in the Central Clearing and Settlement System (CCASS) depository are
calculated and accrued on a monthly basis. Portfolio fees for A-shares held or recorded in the CCASS
depository and for Hong Kong securities held by China Depository and Clearing Corporation Limited
(ChinaClear) are calculated and accrued on a daily basis.
Income on registration and transfer fees for nominee services are calculated and accrued on the book
close dates of the relevant stocks during the financial year.
Market data fees and other fees are recognised when the related services are rendered.
(a) Trading Fees and Trading Tariffs
2021 2020
$m $m
Equity securities traded on the Stock Exchange and through Stock Connect 4,468 3,409
DWs, CBBCs and warrants traded on the Stock Exchange 782 699
Futures and options contracts traded on the Stock Exchange and
the Futures Exchange 1,613 1,764
Base, ferrous and precious metals futures and options contracts traded on the
LME and QME 1,068 1,087
7,931 6,959

5. Revenue (continued)
(b) Stock Exchange Listing Fees
2021 2020
Equity CBBCs, Equity CBBCs,

Main DWs Main DWs
Board GEM & others Total Board GEM & others Total
$m $m $m $m $m $m $m $m
Annual listing fees 718 50 3 771 713 52 3 768
Initial and subsequent
issue listing fees 168 11 1,229 1,408 130 14 979 1,123
Other listing fees 5 1 - 6 7 1 - 8
891 62 1,232 2,185 850 67 982 1,899
(c) Other Revenue
2021 2020
$m $m
Network, terminal user, data line and software sub-license fees 720 610
Hosting services fees 257 230
Commodities stock levies and warehouse listing fees 78 67
Participants’ subscription and application fees 87 112
Accommodation income (note (i)) 201 160
Sales of Trading Rights 22 24
LME financial over-the-counter booking fees 53 49
BayConnect sales and service revenue 69 66
Brokerage on IPO direct allotments 5 26
Miscellaneous revenue 72 61
1,564 1,405
(i) Accommodation income mainly comprises income from Participants on securities deposited as
alternatives to cash deposits of Margin Funds, or depositing currencies whose relevant bank
deposit rates are negative, and interest shortfall collected from LME Clear Participants on cash
collateral where the investment return on the collateral is below the benchmarked interest rates
stipulated in the clearing rules of LME Clear.
(d) Revenue recognised in 2021 that was included in the deferred revenue balance at the beginning of
the year amounted to $1,049 million (2020: $1,033 million).

6. Net Investment Income
Accounting Policy
Interest income on investments and interest rebates to Participants are recognised on a time
apportionment basis using the effective interest method.
Gains and losses arising from changes in fair value of financial assets measured at fair value through profit
or loss and financial liabilities at fair value through profit or loss are included under net investment income
in the consolidated income statement.
2021 2020
$m $m
Gross interest income from financial assets measured at amortised cost 775 2,066
Gross interest income from financial assets measured at fair value through
other comprehensive income 38 56
Interest rebates to Participants (47) (349)
Net interest income 766 1,773
Net gains on financial assets mandatorily measured at fair value through
profit or loss and financial liabilities at fair value through profit or loss
- collective investment schemes 364 487
- other investments 121 -
485 487
Others 53 (32)
Net investment income 1,304 2,228
7. HKEX Foundation Donation Income
Accounting Policy
HKEX Foundation donation income is recognised when the right to receive such donation is established.
2021 2020
$m $m
Stock Code Balloting Scheme 138 105
Others 1 1
139 106

8. Sundry Income
2021 2020
$m $m
Forfeiture of unclaimed dividends (note (a)) 12 9
Others 24 12
36 21
(a) In accordance with CCASS Rule 1109, the Group exercised its forfeiture right to appropriate cash
dividends of $12 million (2020: $9 million) held by HKSCC Nominees Limited, which had remained
unclaimed for a period of more than seven years and recognised these as sundry income. The Group
has, however, undertaken to honour all forfeited claims amounting to $218 million at 31 December
2021 (31 December 2020: $206 million) if adequate proof of entitlement is provided by the beneficial
owner claiming any dividends forfeited.
9. Transaction-related Expenses
Accounting Policy
Transaction-related expenses comprise of license fees, bank charges and other costs which directly vary
with trading and clearing transactions. They are presented below Revenue and other income to reflect the
nature of such direct costs. They are expensed in the period in which they are incurred.
10. Staff Costs and Related Expenses
2021 2020
$m $m
Salaries and other short-term employee benefits 2,425 2,487
Employee share-based compensation benefits of Share Award Scheme
(note 43) 324 281
Termination benefits 20 20
Retirement benefit costs (note (a)):
- ORSO Plan 137 142
- MPF Scheme 4 5
- LME Pension Scheme 29 28
- PRC Retirement Schemes 9 4
2,948 2,967
(a) Retirement Benefit Costs
Accounting Policy
Contribution to the defined contribution plans are expensed as incurred.

10. Staff Costs and Related Expenses (continued)
(a) Retirement Benefit Costs (continued)
The Group has sponsored a defined contribution provident fund scheme (ORSO Plan) which is
registered under the Occupational Retirement Schemes Ordinance (ORSO) and a Mandatory Provident
Fund scheme (MPF Scheme) for the benefits of its employees in Hong Kong. The Group contributes
12.5 per cent of the employee’s basic salary to the ORSO Plan if an employee contributes 5 per cent.
If the employee chooses not to contribute, the Group will contribute 10 per cent of the employee’s
salary to the ORSO Plan. Contributions to the MPF Scheme are in accordance with the statutory limits
prescribed by the MPF Ordinance. Forfeited contributions of the ORSO Plan for employees who
leave before the contributions are fully vested are not used to offset existing contributions but are
credited to a reserve account of that Plan, and are available for distribution to the members of the
Plan at the discretion of the trustees.
For employees of LME and LME Clear, the Group has also sponsored a defined contribution pension
scheme (LME Pension Scheme). For employees who joined LME and LME Clear before 1 May 2014,
the Group contributes 15 per cent to 17 per cent of the employee’s basic salary to the LME Pension
Scheme. For employees who joined the LME and LME Clear on or after 1 May 2014, they are
automatically enrolled into the LME Pension Scheme on a matched contribution basis and may
choose a personal contribution level ranging from 3 per cent to 5 per cent of their basic salaries, which
is matched by the Group’s contribution ranging from 6 per cent to 10 per cent of their basic salaries.
Staff may opt-out of the scheme if they wish. There are no forfeited contributions for the LME Pension
Scheme as the contributions are fully vested to the employees upon payment to the scheme.
Pursuant to the relevant laws and regulations in the People’s Republic of China (PRC), the Group
has joined defined contribution retirement schemes for the employees arranged by local government
labour and security authorities (PRC Retirement Schemes). The Group makes contributions to the
retirement schemes at the applicable rates based on the amounts stipulated by the local government
organisations. Upon retirement, the local government labour and security authorities are responsible
for the payment of the retirement benefits to the retired employees.
Assets of the ORSO Plan, MPF Scheme, LME Pension Scheme and PRC Retirement Schemes are
held separately from those of the Group and are independently administered and are not included
in the consolidated statement of financial position.

11. Information Technology and Computer Maintenance Expenses
2021 2020
$m $m
Costs of services and goods:
- consumed by the Group 634 551
- directly consumed by Participants 81 84
715 635
12. Other Operating Expenses
2021 2020
$m $m
Bank charges 15 14
Communication expenses 11 13
Custodian and fund management related fees 37 28
Financial data subscription fees 52 49
Insurance 12 10
Non-executive directors’ fees 22 21
Office demolition and relocation expenses 11 9
Provision for impairment losses of receivables 7 12
Repairs and maintenance expenses 62 69
Security expenses 21 23
Travel expenses 16 19
UK regulatory fees 22 18
Other miscellaneous expenses 83 89
371 374
13. Operating Profit
2021 2020
$m $m
Operating profit is stated after charging/(crediting):
Auditor’s remuneration
- audit fees 18 19
- other non-audit fees 2 3
Lease rentals for land and buildings (note (a)) 1 4
Net foreign exchange (gains)/losses on financial assets and liabilities
(excluding financial assets and financial liabilities measured at fair value
through profit or loss) (53) 32
(a) The amounts represent lease rentals relating to short-term leases under HKFRS 16.

14. Finance Costs
Accounting Policy
Interest expenses (other than interest on lease liabilities) are charged to the consolidated income
statement and recognised on a time apportionment basis, taking into account the principal and the
applicable interest rates using the effective interest method.
Interest on lease liabilities is charged to the consolidated income statement over the lease periods so
as to produce a constant periodic rate of interest on the remaining balance of the lease liabilities (note
38) for each period.
Other finance costs, which represent banking facility commitment fees that relate to liquidity support
provided to the Group’s clearing houses, are recognised in the consolidated income statement in the
period in which they are incurred.
2021 2020
$m $m
Interest on borrowings 3 5
Interest on lease liabilities (note 38) 79 89
Banking facility commitment fees 54 53
Negative interest on Euro and Japanese Yen deposits 18 34
154 181
15. Directors’ Emoluments and Interests of Directors
All Directors, including Executive Directors (HKEX’s Chief Executive Officer and ex-HKEX’s Interim Chief
Executive), received emoluments during the years ended 31 December 2021 and 31 December 2020.
The aggregate emoluments paid and payable to the Directors during the year were as follows:
2021 2020
$’000 $’000
Executive Directors:
Performance cash incentive 19,438 80,700
Retirement benefit costs 1,100 1,333
29,525 96,717
Employee share-based compensation benefits (note (a)) 50,405 23,773
79,930 120,490
Non-executive Directors:
Fees 22,079 21,327
Other benefits 12 37
22,091 21,364
102,021 141,854
(a) Employee share-based compensation benefits represent the fair value of share awards granted
under the Share Award Scheme (Awarded Shares) on grant date (note 43) recognised in the
consolidated income statement during the year.

15. Directors’ Emoluments and Interests of Directors (continued)
(b) The emoluments of all Directors, including HKEX’s Chief Executive Officer and HKEX’s ex-Interim
Chief Executive who are ex-officio members, are set out below. The amounts represent
emoluments paid or receivable in respect of their services as a director.
2021
Employee
Other Performance Retirement share-based
benefits cash benefit costs compensation
Fees Salary (note (i)) incentive (note (ii)) Sub-total benefits Total
Name of Director $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Laura M Cha 4,949 - 12 - - 4,961 - 4,961
Alejandro N Aguzin (note (iii)) - 6,048 157 16,500 756 23,461 47,762 71,223
Calvin C K Tai (note (iv)) - 2,750 32 2,938 344 6,064 2,643 8,707
Nicholas C Allen (note (v)) 878 - - - - 878 - 878
Apurv Bagri 1,130 - - - - 1,130 - 1,130
T C Chan (note (vii)) 356 - - - - 356 - 356
C H Cheah 1,596 - - - - 1,596 - 1,596
Anna M Cheung (note (v)) 998 - - - - 998 - 998
Susan M F Chow Woo 1,598 - - - - 1,598 - 1,598
Anita Y M Fung (note (vii)) 304 - - - - 304 - 304
Rafael Gil-Tienda 1,970 - - - - 1,970 - 1,970
Fred Z Hu (note (vii)) 340 - - - - 340 - 340
Benjamin P C Hung 1,170 - - - - 1,170 - 1,170
Nisa B W Y Leung (note (vi)) 878 - - - - 878 - 878
Hugo P H Leung 1,577 - - - - 1,577 - 1,577
John M Williamson (note (vii)) 451 - - - - 451 - 451
Stephen K W Yiu 3,006 - - - - 3,006 - 3,006
Y Zhang (note (v)) 878 - - - - 878 - 878
Total 22,079 8,798 201 19,438 1,100 51,616 50,405 102,021
2020
Employee
Other Performance Retirement share-based
benefits cash benefit costs compensation
Fees Salary (note (i)) incentive (note (ii)) Sub-total benefits Total
Name of Director $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Laura M Cha 4,894 - 37 - - 4,931 - 4,931
Charles X Li (note (viii)) - 9,315 5,369 80,700 1,333 96,717 23,773 120,490
Apurv Bagri 1,010 - - - - 1,010 - 1,010
T C Chan 1,354 - - - - 1,354 - 1,354
C H Cheah 1,580 - - - - 1,580 - 1,580
Susan M F Chow Woo (note (ix)) 788 - - - - 788 - 788
Anita Y M Fung 1,182 - - - - 1,182 - 1,182
Rafael Gil-Tienda 1,945 - - - - 1,945 - 1,945
Fred Z Hu 1,277 - - - - 1,277 - 1,277
Benjamin P C Hung 1,125 - - - - 1,125 - 1,125
Hugo P H Leung 1,536 - - - - 1,536 - 1,536
John M Williamson 1,755 - - - - 1,755 - 1,755
Stephen K W Yiu 2,881 - - - - 2,881 - 2,881
Total 21,327 9,315 5,406 80,700 1,333 118,081 23,773 141,854
Notes:
(i) Other benefits included leave pay, insurance premium, club membership and relocation allowance.
(ii) Retirement benefit costs include employer’s contributions to provident fund and long service payment.
Employees who retire before normal retirement age are eligible for 18 per cent of the employer’s contribution
to the provident fund after completion of two years of service. The rate of vested benefit increases at an
annual increment of 18 per cent thereafter reaching 100 per cent after completion of seven years of service.
(iii) Appointment effective 24 May 2021
(iv) Mr. Tai served as Interim Chief Executive and Executive Director of HKEX from 1 January 2021 to 23 May
2021, and continues in his roles as Chief Operating Officer and Co-President (up to 31 July 2021) /
President (since 1 August 2021) of HKEX. The amounts disclosed above represent his remuneration from
1 January 2021 to 23 May 2021, which are calculated on a pro rata basis with reference to his actual
remuneration for the year ended 31 December 2021.
(v) Elected on 28 April 2021
(vi) Appointment effective 28 April 2021
(vii) Retired on 28 April 2021
(viii) Mr. Li retired on 31 December 2020. His performance cash incentive in 2020 included a special cash incentive
payment of $30 million approved by the Board.
(ix) Appointment effective 7 May 2020

15. Directors’ Emoluments and Interests of Directors (continued)
(c) Directors’ material interests in transactions, arrangement or contracts
No significant transactions, arrangements and contracts in relation to HKEX’s business to which

HKEX was a party and in which a director of HKEX had a material interest, whether directly or
indirectly, subsisted at the end of the year or at any time during the year.
16. Five Top-paid Employees
One (2020: one) of the five top-paid employees was the Chief Executive Officer whose emoluments are
disclosed in note 15. Details of the emoluments of the other four (2020: four) top-paid employees, which
included the emoluments payable to HKEX’s ex-Interim Chief Executive served as Executive Director
(note 15) were as follows:
2021 2020
$’000 $’000
Inducement fees 3,614 -
Performance cash incentive 17,167 19,716
Retirement benefit costs 2,398 1,654
50,145 39,051
Employee share-based compensation benefits (note (a)) 27,844 21,554
77,989 60,605
(a) Employee share-based compensation benefits represent the fair value of Awarded Shares on grant
date (note 43) amortised to the consolidated income statement during the year.
(b) The emoluments of these four (2020: four) employees, including share-based compensation
benefits, were within the following bands:
2021 2020
Number of Number of
employees employees
$12,500,001 - $13,000,000 - 1
$14,500,001 - $15,000,000 - 1
$15,000,001 - $15,500,000 1 1
$17,500,001 - $18,000,000 1 1
$22,000,001 - $22,500,000 1 -
$22,500,001 - $23,000,000 1 -
4 4
The above employees included senior executives who were also Directors of the subsidiaries
during the years. No Directors of the subsidiaries waived any emoluments.

17. Taxation
Accounting Policy
Tax charge for the period comprises current and deferred tax. Tax is recognised in the consolidated
income statement, except to the extent that it relates to items recognised directly in equity, in which
case, the tax is also recognised directly in equity.
The current tax charge is calculated on the basis of the tax laws enacted or substantively enacted at
the end of the reporting period in the countries where HKEX and its subsidiaries operate and generate
taxable income. Management periodically evaluates positions taken in tax returns with respect to
situations in which applicable tax regulation is subject to interpretation and considers whether it is
probable that a taxation authority will accept an uncertain tax treatment. Provisions are established
where appropriate on the basis of amounts expected to be paid to tax authorities.
The Group’s accounting policy for recognition of deferred tax is described in note 41.
(a) Taxation charge/(credit) in the consolidated income statement represented:
2021 2020
$m $m
Current tax - Hong Kong Profits Tax
- Provision for the year 1,969 1,537
- Over provision in respect of prior years - (2)
1,969 1,535
Current tax - Overseas Tax
- Provision for the year 174 177
- Under provision in respect of prior years 2 1
176 178
Total current tax (note (i)) 2,145 1,713
Deferred tax
- Provision for temporary differences 38 71
- Impact of changes in UK Corporate Tax rate (note (ii)) 160 61
Total deferred tax (note 41(a)) 198 132
Taxation charge 2,343 1,845
(i) Hong Kong Profits Tax has been provided at the rate of 16.5 per cent (2020: 16.5 per cent) on
the estimated assessable profit for the year. Taxation on overseas profits has been calculated
on the estimated assessable profit at the rates of taxation prevailing in the countries in which the
Group operates, with the average corporation tax rate applicable to the subsidiaries in the UK
being 19 per cent (2020: 19 per cent).
(ii) Through the enactment of the Finance Act 2021 in June 2021, the UK Corporate Tax rate would
increase from 19 per cent to 25 per cent from 1 April 2023. As a result, a one-off deferred tax
charge on acquired LME intangible assets of $160 million was recognised during the year ended
31 December 2021 (2020: $61 million deferred tax charge was recognised as the UK Corporate
Tax rate remained at 19 per cent from 1 April 2020 instead of reducing to 17 per cent as
previously enacted).

17. Taxation (continued)
(b) The taxation on the Group’s profit before taxation differs from the theoretical amount that would
arise using the weighted average tax rate applicable to profits of the consolidated entities as
follows:
2021 2020
$m $m
Tax calculated at domestic tax rates applicable to profits in the
respective countries (note (i)) 2,441 2,188
Income not subject to taxation (410) (510)
Expenses not deductible for taxation purposes 96 59
Remeasurement of deferred tax assets and liabilities arising from
changes in UK Corporate Tax rate 160 61
Change in deferred tax arising from unrecognised tax losses and
other deferred tax adjustments 54 48
Under/(over) provision in respect of prior years 2 (1)
Taxation charge 2,343 1,845
(i) The weighted average applicable tax rate was 16.4 per cent (2020: 16.4 per cent).
18. Earnings Per Share
The calculation of the basic and diluted earnings per share is as follows:
(a) Basic earnings per share
2021 2020
Profit attributable to shareholders ($m) 12,535 11,505
Weighted average number of shares in issue less shares
held for Share Award Scheme (in ’000) 1,265,431 1,262,746
Basic earnings per share ($) 9.91 9.11
(b) Diluted earnings per share
2021 2020
Profit attributable to shareholders ($m) 12,535 11,505
Weighted average number of shares in issue less shares
held for Share Award Scheme (in ’000) 1,265,431 1,262,746
Effect of Awarded Shares (in ’000) 2,140 3,057
Weighted average number of shares for the purpose of calculating
diluted earnings per share (in ’000) 1,267,571 1,265,803
Diluted earnings per share ($) 9.89 9.09

19. Dividends
Accounting Policy
Dividends declared are recognised as liabilities in the consolidated financial statements in the period in
which the dividends are approved by shareholders or directors, where appropriate.
2021 2020
$m $m
First interim dividend paid:
$4.69 (2020: $3.71) per share 5,946 4,704
Less: Dividend for shares held by Share Award Scheme (note (a)) (12) (12)
5,934 4,692
Second interim dividend declared (note (b)):
$4.18 (2020: $4.46) per share based on issued share capital at 31 Dec 5,300 5,655
Less: Dividend for shares held by Share Award Scheme at 31 Dec (note (a)) (10) (9)
5,290 5,646
11,224 10,338
(a) The results and net assets of The HKEx Employees’ Share Award Scheme (Share Award Scheme)
are included in HKEX’s financial statements. Therefore, dividends for shares held by the Share
Award Scheme were deducted from the total dividends.
(b) The second interim dividend declared after 31 December was not recognised as a liability at 31
December as it had not been approved by the Board.
20. Financial Assets
Accounting Policy
The Group classifies its financial assets in the following measurement categories:
• those measured at fair value (either through profit or loss (note 22) or through other comprehensive
income (note 23)); and
• those measured at amortised cost (note 24).
The classification depends on the business model for managing the financial assets and the contractual
terms of the cash flows.
The Group reclassifies debt investments when and only when its business model for managing those
assets changes.
Financial assets of Clearing House Funds and Margin Funds are classified as current assets as they
will be liquidated whenever liquid funds are required.
Other financial assets are classified as current assets unless they are expected to mature or be
disposed of after twelve months from the end of the reporting period, in which case, they are included
in non-current assets. For collective investment schemes which have no maturity date, they are
included in current assets unless they cannot be redeemed within twelve months from the end of the
reporting period.
Financial assets are derecognised when the rights to receive cash flows from the assets have expired
or have been transferred and the Group has transferred substantially all the risks and rewards of
ownership of the assets.

21. Cash and Cash Equivalents
Accounting Policy
Cash and cash equivalents comprise cash on hand, bank balances and other short-term highly liquid
investments that are readily convertible into known amounts of cash and are subject to an insignificant
risk of changes in value (mainly reverse repurchase investments, time deposits and short-term debt
securities), with original maturities of three months or less, or with remaining maturities of three months
or less from the date of acquisition.
At 31 Dec 2021
Cash for Corporate Margin Clearing
A-shares Funds Funds House Funds
(notes (a) (notes (b) (notes (c) (notes (c)
and (c)) and 25) and 33) and 37) Total
$m $m $m $m $m
Cash on hand and balances and
deposits with banks 7,372 11,443 54,546 6,884 80,245
Unlisted debt securities - - - 75 75
Reverse repurchase investments - 1,457 91,040 8,544 101,041
7,372 12,900 145,586 15,503 181,361
At 31 Dec 2020
Cash for Corporate Margin Clearing
A-shares Funds Funds House Funds
(notes (a) (notes (b) (notes (c) (notes (c)
and (c)) and 25) and 33) and 37) Total
$m $m $m $m $m
Cash on hand and balances and
deposits with banks 6,212 9,824 48,673 5,044 69,753
Unlisted debt securities - - - 3,262 3,262
Reverse repurchase investments - 929 73,511 10,541 84,981
6,212 10,753 122,184 18,847 157,996
(a) Cash for A-shares includes:

(i) Renminbi (RMB) cash prepayments received by Hong Kong Securities Clearing Company
Limited (HKSCC) from its Clearing Participants for releasing their allocated A-shares on the
trade day. Such prepayments will be used to settle HKSCC’s Continuous Net Settlement (CNS)
obligations payable on the next business day; and
(ii) Hong Kong Dollar/United States Dollar cash collateral received by HKSCC from its Clearing
Participants for releasing their allocated A-shares on the trade day. Such collateral will be
refunded to the Clearing Participants when they settle their RMB CNS obligations on the next
business day.
(b) At 31 December 2021, cash and cash equivalents of Corporate Funds of $502 million (31
December 2020: $311 million) (note 25(b)) were solely used to support Skin-in-the-Game and
default fund credits of Clearing House Funds (note 37(a)).
(c) The cash and cash equivalents of Margin Funds, Clearing House Funds, Corporate Funds reserved
for supporting Skin-in-the-Game and default fund credits of Clearing House Funds (note (b)), and
Cash for A-shares are held for specific purposes and cannot be used by the Group to finance other
activities. These balances are not included in cash and cash equivalents of the Group for cash flow
purpose in the consolidated statement of cash flows.

22. Financial Assets Measured at Fair Value through Profit or Loss
Accounting Policy
Classification
Investments and other financial assets are classified under financial assets measured at fair value
through profit or loss if they do not meet the conditions to be measured at fair value through other
comprehensive income (note 23) or amortised cost (note 24). On initial recognition, the Group may
irrevocably designate a financial asset as at fair value through profit or loss that otherwise meets the
requirements to be measured at amortised cost or at fair value through other comprehensive income
if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.
Derivative financial instruments (see below) are classified as financial assets measured at fair value
through profit or loss when their fair values are positive.
Investments in equity instruments that are not held for trading are classified under financial assets
measured at fair value through profit or loss unless the Group has made an irrevocable election at the
time of initial recognition to account for the investment at fair value through other comprehensive
income.
Recognition and measurement

Purchases and sales of financial assets measured at fair value through profit or loss are recognised
on the trade date. They are initially recognised at fair value with transaction costs recognised as
expenses in the consolidated income statement and subsequently carried at fair value. Gains and
losses arising from changes in fair value are included in the consolidated income statement in the
period in which they arise.
Interest income is included in net fair value gains/(losses) from these financial assets.
Fair values of quoted investments are based on the most representative prices within the bid-ask
spreads which are currently considered as the bid-prices. The collective investment schemes are
valued based on the latest available transaction price or redemption price for each fund, as
determined by the fund administrator. For unlisted securities or financial assets without an active
market, the Group establishes the fair value by using valuation techniques including the use of recent
arm’s length transactions, reference to other instruments that are substantially the same and
discounted cash flow analysis.
Derivative financial instruments

Derivative financial instruments include outstanding derivatives contracts of LME Clear, which acts as
a central counterparty to the base, ferrous and precious metals futures and options contracts traded
on the LME, and forward foreign exchange contracts. Derivatives are initially recognised at fair value
on trade date and subsequently remeasured at their fair values. Except where outstanding derivatives
contracts are held in the capacity as a central counterparty, derivatives are categorised as held for
trading with changes in fair value recognised in the consolidated income statement.

22. Financial Assets Measured at Fair Value through Profit or Loss (continued)
At 31 Dec 2021
Metals
Corporate derivatives
Funds contracts
(note 25) (note (a)) Total
$m $m $m
Mandatorily measured at fair value
Collective investment schemes:
- listed outside Hong Kong 1,680 - 1,680
- unlisted 7,063 - 7,063
8,743 - 8,743
Unlisted equity securities 694 - 694
Derivative financial instruments:

- base, ferrous and precious metals futures and
options contracts cleared through LME Clear
(note (a)) - 91,424 91,424
9,437 91,424 100,861
The expected recovery dates of the financial assets

are analysed as follows:
Within twelve months 8,491 91,424 99,915
More than twelve months 946 - 946
9,437 91,424 100,861
At 31 Dec 2020
Metals
Corporate derivatives
Funds contracts
(note 25) (note (a)) Total
$m $m $m
Mandatorily measured at fair value
Collective investment schemes:
- listed outside Hong Kong 1,131 - 1,131
- unlisted 6,362 - 6,362
7,493 - 7,493
Unlisted equity securities 220 - 220

- base, ferrous and precious metals futures and
options contracts cleared through LME Clear
(note (a)) - 92,884 92,884
7,713 92,884 100,597
The expected recovery dates of the financial assets

are analysed as follows:
7,713 92,884 100,597
(a) Metals derivatives contracts represent the fair value of the outstanding base, ferrous and precious
metals futures and options contracts cleared through LME Clear that do not qualify for netting
under HKAS 32 - Financial Instruments: Presentation, where LME Clear is acting in its capacity as
a central counterparty to the contracts traded on the LME. A corresponding amount has been
recognised under financial liabilities at fair value through profit or loss (note 32).

23. Financial Assets Measured at Fair Value through Other Comprehensive Income
Accounting Policy
Classification
A debt investment is measured at fair value through other comprehensive income if it meets both of the
following conditions and is not designated as at fair value through profit or loss:
 it is held within a business model whose objective is achieved by both collecting contractual cash
flows and selling financial assets; and
 its contractual terms give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
The nature of any derivatives embedded in the debt instruments is considered in determining whether
the cash flows are solely payment of principal and interest on the principal outstanding and are not
accounted for separately. If the combined cash flows of the debt instruments and embedded
derivatives are considered not satisfying the “solely payments of principal and interest” condition, the
financial assets are classified as financial assets measured at fair value through profit or loss (note 22).

At initial recognition, the Group measures a financial asset at its fair value plus transaction costs that
are directly attributable to the acquisition of the financial asset.
Financial assets measured at fair value through other comprehensive income are subsequently
measured at fair value. Interest income calculated using the effective interest method, foreign
exchange gains and losses and impairment are recognised in the consolidated income statement.
Other changes in carrying amounts are recognised in other comprehensive income. On derecognition,
gains and losses accumulated in other comprehensive income are reclassified to the consolidated
income statement.
Fair values of quoted investments or investments with an active market are based on the most
representative prices within the bid-ask spreads which are currently considered as the bid-prices. For
unlisted securities or financial assets without an active market, the Group establishes the fair value by
using valuation techniques including the use of recent arm’s length transactions and dealer quotes for
similar investments.
Impairment
The Group assesses on a forward-looking basis the expected credit losses associated with its debt
instruments measured at fair value through other comprehensive income. Expected credit losses are a
probability-weighted estimate of credit losses. Credit losses are measured as the present value of all
expected cash shortfalls (i.e., the difference between the cash flows due to the Group in accordance
with the contract and the cash flows that the Group expects to receive).
In measuring expected credit losses, the Group takes into account reasonable and supportable
information that is available without undue cost or effort. This includes information about past events,
current conditions and forecasts of future economic conditions.

23. Financial Assets Measured at Fair Value through Other Comprehensive Income (continued)
Accounting Policy (continued)

Impairment (continued)
Expected credit losses are measured on either of the following bases:

 12-month expected credit losses: these are losses that are expected to result from possible
default events within the 12 months after the reporting date; and
 Lifetime expected credit losses: these are losses that are expected to result from all possible
default events over the expected lives of the items to which the expected credit loss model
applies.
For financial assets measured at fair value through other comprehensive income, the Group
recognises a provision for impairment losses equal to 12-month expected credit losses unless there
has been a significant increase in credit risk of the financial assets since initial recognition, in which
case the provision for impairment losses is measured at an amount equal to lifetime expected credit
losses.
Expected credit losses are measured at each reporting date to reflect changes in the financial asset’s
credit risk since initial recognition.
In assessing whether the credit risk of a financial asset has increased significantly since initial
recognition, the Group compares the risk of default occurring on the financial asset assessed at the
reporting date with that assessed at the date of initial recognition. In making this reassessment, the
Group considers that a default event occurs when the financial asset is past due by 90 days or one or
more credit impaired events that have a detrimental impact on the estimated future cash flows of that
financial asset have occurred.
The following information is taken into account when assessing whether credit risk has increased
significantly since initial recognition:
 failure to make payments of principal or interest on their contractually due dates;
 an actual or expected significant deterioration in a financial asset’s external or internal credit rating
(if available);
 an actual or expected significant deterioration in the operating results of the debtor; and
 existing or forecast changes in the technological, market, economic or legal environment that have
a significant adverse effect on the debtor’s ability to meet its obligation to the Group.
Depending on the nature of the financial instruments, the assessment of a significant increase in credit
risk is performed on either an individual basis or a collective basis. When the assessment is performed
on a collective basis, the financial assets are grouped based on shared credit risk characteristics, such
as past due status and credit risk ratings.
Any change in the expected credit loss amount is recognised as an impairment loss or reversal of
impairment loss in the consolidated income statement, with a corresponding adjustment to the other
comprehensive income.

23. Financial Assets Measured at Fair Value through Other Comprehensive Income (continued)
At 31 Dec 2021
Clearing
Margin House
Funds Funds
(note 33) (note 37) Total
$m $m $m
Listed debt securities (note (a)) 467 - 467
Unlisted debt securities (note (a)) 4,816 4,472 9,288
5,283 4,472 9,755
The expected recovery dates of the financial assets are analysed as follows:
Within twelve months (note (b)) 5,283 4,472 9,755
At 31 Dec 2020
Clearing
Margin House
Funds Funds
(note 33) (note 37) Total
$m $m $m
Unlisted debt securities (note (a)) 5,538 2,404 7,942
The expected recovery dates of the financial assets are analysed as follows:
Within twelve months (note (b)) 5,538 2,404 7,942
(a) No provision for impairment loss was made at 31 December 2021 and 31 December 2020 as the
financial assets were considered to be of low credit risk and the expected credit loss was minimal.
The investments in debt securities held were of investment grade and had a weighted average credit
rating of Aa2 (Moody) (31 December 2020: Aa2 (Moody)) with no history of default and there was no
unfavourable current conditions and forecast of future economic conditions at the reporting dates.
(b) Includes financial assets maturing after twelve months of $3,879 million (31 December 2020: $3,435
million) attributable to Margin Funds that could readily be liquidated to meet liquidity requirements of
the Fund (note 53(b)).
24. Financial Assets Measured at Amortised Cost
Accounting Policy
Classification
Investments are classified under financial assets measured at amortised cost if they satisfy both of
the following conditions:
 the assets are held within a business model whose objective is to hold assets in order to collect
contractual cash flows; and
 the contractual terms of the financial assets give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.
The nature of any derivatives embedded in the financial assets is considered in determining whether
the cash flows are solely payment of principal and interest on the principal outstanding and are not
accounted for separately. If the combined cash flows of the financial assets and embedded derivatives
are considered not satisfying the “solely payments of principal and interest” condition, the financial
assets are classified as financial assets measured at fair value through profit or loss (note 22).
Accounts receivable and other deposits are also classified under this category (note 26).

24. Financial Assets Measured at Amortised Cost (continued)

Financial assets measured at amortised cost are initially recognised at fair value plus transaction
costs and subsequently carried at amortised cost using the effective interest method. The amortised
cost is reduced by loss allowance for expected credit losses. Interest income, foreign exchange gains
and losses and impairment are recognised in the consolidated income statement. Any gains and
losses on derecognition is recognised in the consolidated income statement.
Impairment
The Group assesses on a forward-looking basis the expected credit loss associated with its financial
assets measured at amortised cost.
For accounts receivable due from customers, the Group applies the simplified approach permitted by
HKFRS 9 (2014): Financial Instruments, which requires expected lifetime losses (note 23) to be
recognised from initial recognition of the receivables. Expected credit losses of receivables are
estimated using a provision matrix based on the Group’s historical credit loss experience, adjusted for
factors that are specific to the debtors and an assessment of both the current and forecast general
economic conditions at the reporting date.
For all other financial assets measured at amortised cost (including time deposits, debt instruments
and other deposits), the Group recognises a provision for impairment losses equal to 12-month
expected credit losses (refer to note 23 for details of assessment of credit risk) unless there has been
a significant increase in credit risk of the financial assets since initial recognition, in which case the
provision for impairment losses is measured at an amount equal to lifetime expected credit losses.
Expected credit losses are remeasured at each reporting date to reflect changes in the financial
asset’s credit risk since initial recognition (note 23). Any change in the expected credit loss amount is
recognised as an impairment loss or reversal of impairment loss in the consolidated income
statement, with a corresponding adjustment to the carrying amount through a loss allowance account.
The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that
there is no realistic prospect of recovery. This is generally the case when the Group determines that
the debtor does not have assets or sources of income that could generate sufficient cash flows to
repay the amounts subject to the write-off.
Subsequent recoveries of an asset that has previously been written off are recognised as a reversal
of impairment in the consolidated income statement in the period in which the recovery occurs.

24. Financial Assets Measured at Amortised Cost (continued)

At 31 Dec 2021
Corporate
Funds Margin
(notes (b) Funds
and 25) (note 33) Total
$m $m $m
Debt securities 1,194 - 1,194
Time deposits with original maturities over three months 10,166 40,371 50,537
Other financial assets 97 - 97
11,457 40,371 51,828
The expected recovery dates of the financial assets are

analysed as follows:
11,457 40,371 51,828
At 31 Dec 2020
Corporate
Funds Margin
(notes (b) Funds
and 25) (note 33) Total
$m $m $m
Debt securities 1,740 - 1,740
Time deposits with original maturities over three months 13,442 47,407 60,849
Other financial assets 99 - 99
15,281 47,407 62,688
The expected recovery dates of the financial assets are

analysed as follows:
15,281 47,407 62,688
(a) No provision for impairment loss for these financial assets was made at 31 December 2021 and 31
December 2020 as the financial assets were considered to be of low credit risk and the expected
credit loss of these financial assets was minimal. Debt securities held were of investment grade and
had a weighted average credit rating of Aa2 (Moody) (31 December 2020: Aa2 (Moody)). Deposits
were placed with the investment grade banks, licensed banks and restricted licence banks regulated
by the Hong Kong Monetary Authority, and banks regulated by local banking regulators in the
countries where the Group’s subsidiaries operate. All these financial assets had no history of default
and there was no unfavourable current conditions and forecast of future economic conditions at the
reporting dates.
(b) At 31 December 2021, debt securities of Corporate Funds of $765 million (31 December 2020: $930
million) (note 25(b)) were solely used to support Skin-in-the-Game and default fund credits of
HKSCC Guarantee Fund (note 37(a)).
(c) The fair values of financial assets maturing after twelve months are disclosed in note 53(d)(ii).

25. Corporate Funds
At At
31 Dec 2021 31 Dec 2020
$m $m
Corporate Funds comprised the following instruments:
Cash and cash equivalents (notes (b) and 21) 12,900 10,753
Financial assets measured at fair value through profit or loss (note 22) 9,437 7,713
Financial assets measured at amortised cost (notes (b) and 24) 11,457 15,281
33,794 33,747
(a) Financial assets held by the Group which are funded by share capital and funds generated from
operations are classified as Corporate Funds (i.e., other than financial assets of Margin Funds,
Clearing House Funds, Cash for A-shares, and base, ferrous and precious metals derivatives
contracts).
(b) At 31 December 2021, cash and cash equivalents of Corporate Funds of $502 million (31 December
2020: $311 million) and financial assets measured at amortised cost of Corporate Funds of $765
million (31 December 2020: $930 million) were solely used to support Skin-in-the-Game and default
fund credits of Clearing House Funds (note 37(a)).
26. Accounts Receivable, Prepayments and Deposits
Accounting Policy
Accounts receivable and other deposits are financial assets measured at amortised cost less
impairment. The accounting policy for financial assets measured at amortised cost is described in note
24.
At At
31 Dec 2021 31 Dec 2020
$m $m
Receivable from ChinaClear, and Exchange and Clearing Participants:
- CNS money obligations receivable (note (a)) 17,921 32,910
- transaction levy, stamp duty and fees receivable 950 1,321
- Settlement Reserve Fund and Settlement Guarantee Fund held by ChinaClear
(note 33) 12,757 11,862
- others 23 17
Receivables for collective investment schemes sold before 31 Dec 98 28
Payment in advance for collective investment schemes traded after 31 Dec 97 -
Other receivables, prepayments and deposits 942 984
Less: Provision for impairment losses of receivables (notes (b) and (c)) (50) (42)
32,738 47,080
(a) Upon acceptance of Stock Exchange trades for settlement in CCASS under the CNS basis, HKSCC
interposes itself between the HKSCC Clearing Participants as the settlement counterparty to the
trades through novation. The CNS money obligations due by/to HKSCC Clearing Participants on the
Stock Exchange trades are recognised as receivables and payables (note 34) when they are
confirmed and accepted on the day after the trade day.
For a trade in A-shares transacted for Stock Exchange Participants, the rights and obligations of the
parties to the trade will be transferred to ChinaClear, and a market contract between HKSCC and
the relevant HKSCC Clearing Participants is created through novation. The CNS money obligations
due by/to HKSCC Clearing Participants and ChinaClear are recognised as receivables and payables
(note 34) when the trades are confirmed on the trade day.

26. Accounts Receivable, Prepayments and Deposits (continued)
(b) Expected credit losses
For accounts receivable, the Group applies the simplified approach permitted by HKFRS 9 (2014),
which requires expected lifetime losses to be recognised from initial recognition of the receivables.
The expected loss rates are based on the payment profiles of debtors and the corresponding
historical credit losses experienced during the year. The historical loss rates are adjusted to reflect
current and forward-looking information on macroeconomic factors affecting the ability of the
customers to settle the receivables. On that basis, the loss allowance for accounts receivable as at
31 December 2021 and 31 December 2020 was determined as follows:
At 31 Dec 2021
Current or 31 to More than
within 30 days 180 days 180 days
past due past due past due Total
Expected loss rate 3% 10% 100%
Gross carrying amount – accounts receivable
subject to expected credit loss provision ($m) 545 21 29 595
Loss allowance ($m) 19 2 29 50
At 31 Dec 2020
Current or 31 to More than
within 30 days 180 days 180 days
past due past due past due Total
Expected loss rate 2% 9% 100%
Gross carrying amount – accounts receivable
subject to expected credit loss provision ($m) 581 53 26 660
Loss allowance ($m) 11 5 26 42
For the remaining receivables and other deposits (excluding prepayments) amounting to $31,964
million as of 31 December 2021 (31 December 2020: $46,266 million), the expected credit loss was
minimal as these receivables were mainly due from Participants which are subject to the Group’s
stringent financial requirements and admission criteria, compliance monitoring and risk
management measures, these receivables had no recent history of default, part of the receivables
were subsequently settled, and there was no unfavourable current conditions and forecast future
economic conditions at the reporting dates.
(c) The movements in provision for impairment losses of receivables were as follows:
2021 2020
$m $m
At 1 Jan 42 29
Provision for loss allowance for receivables under other operating
expenses 7 12
Exchange differences 1 1
At 31 Dec 50 42
(d) CNS money obligations receivable mature within two days after the trade date. The balance of
Settlement Reserve Fund and Settlement Guarantee Fund with ChinaClear is rebalanced on a
monthly basis. Fees receivable are due immediately or up to 60 days depending on the type of
services rendered. The majority of the remaining accounts receivable, prepayments and deposits
were due within three months.

27. Principal Subsidiaries and Controlled Structured Entities
Accounting Policy
Subsidiaries are entities (including structured entities (note (b))) over which the Group has control.
The Group controls an entity when the Group is exposed to, or has the rights to, variable returns from
its involvement with the entity and has the ability to affect those returns through its power over the
entity.
A structured entity is an entity that has been designed so that voting or similar rights are not the
dominant factor in deciding who controls the entity, such as when any voting rights relate to
administrative tasks only and the relevant activities are directed by means of contractual
arrangements.
The Group considers all of its investments in collective investment schemes to be investments in
unconsolidated structured entities, which are classified as financial assets measured at fair value
through profit or loss (note 22).
(a) Principal subsidiaries
HKEX had direct or indirect interests in the following principal subsidiaries:
Place of Issued and fully Interest held

incorporation paid up by the Group
and share/registered At At
Company operation capital Principal activities 31 Dec 2021 31 Dec 2020
Direct principal subsidiaries:
The Stock Exchange of Hong Kong 929 ordinary Operates the only 100% 100%
Hong Kong Limited shares ($929) Stock Exchange in
Hong Kong
Hong Kong Futures Hong Kong 230 ordinary Operates a futures 100% 100%
Exchange Limited shares and options
($28,750,000) exchange in
Hong Kong
Hong Kong Securities Hong Kong 4 ordinary shares Operates a clearing 100% 100%
Clearing Company ($1,060,000,002) house for securities
Limited traded on the Stock
Exchange in Hong
Kong, Shanghai
Stock Exchange
and Shenzhen
Stock Exchange in
Mainland China
through Stock
Connect and the
central securities
depository, and
provides custody
and nominee
services for eligible
securities listed in
Hong Kong and
Mainland China
OTC Clearing Hong Hong Kong 11,187 ordinary Operates a clearing 76% 76%
Kong Limited (OTC shares house for
Clear) (note (i)) ($921,206,421) over-the-counter
3,541 non-voting derivatives
ordinary shares
($433,291,660)

27. Principal Subsidiaries and Controlled Structured Entities (continued)
(a) Principal subsidiaries (continued)

Place of Issued and fully Interest held
incorporation paid up by the Group
and share/registered At At
Company operation capital Principal activities 31 Dec 2021 31 Dec 2020
Direct principal subsidiaries (continued):

HKFE Clearing Hong Kong 3,766,700 Operates a clearing 100% 100%
Corporation Limited ordinary shares house for
(HKCC) ($831,010,000) derivatives
contracts traded
on the Futures
Exchange
The SEHK Options Hong Kong 4,000,000 Operates a clearing 100% 100%
Clearing House Limited ordinary shares house for stock
(SEOCH) ($271,000,000) options contracts
traded on the
Stock Exchange in
Hong Kong
Indirect principal subsidiaries:

The London Metal United 100 ordinary Operates an 100% 100%
Exchange Kingdom shares of exchange for the
£1 each trading of base,
ferrous and
precious metals
futures and
options contracts
LME Clear Limited United 107,500,001 Operates a clearing 100% 100%

Kingdom ordinary shares house for base,
of £1 each ferrous and
precious metals
futures and
options contracts
Qianhai Mercantile Mainland RMB400,000,000 Operates a 90% 90%

Exchange Co.,Ltd. China commodity trading
(QME) (note (i)) platform in
Mainland China
The above table lists the subsidiaries of the Group which, in the opinion of its directors, principally
affect the results or assets of the Group.
(i) Subsidiaries with non-controlling interests
At 31 December 2021, the Group held 76 per cent (31 December 2020: 76 per cent) interest in
OTC Clear, while the remaining 24 per cent (31 December 2020: 24 per cent) interest was held
by non-controlling interests. The non-controlling interests do not have voting rights at general
meetings of OTC Clear.
QME is a limited company established in Mainland China. At 31 December 2021, the Group
held 90 per cent (31 December 2020: 90 per cent) interest in QME, while the remaining 10 per
cent (31 December 2020: 10 per cent) interest was held by non-controlling interests.
BayConnect is a limited company established in Mainland China. At 31 December 2021, the

Group held 51 per cent (31 December 2020: 51 per cent) interest in BayConnect, while the
remaining 49 per cent (31 December 2020: 49 per cent) interest was held by non-controlling
interests.

27. Principal Subsidiaries and Controlled Structured Entities (continued)
(a) Principal subsidiaries (continued)
(i) Subsidiaries with non-controlling interests (continued)
Set out below is the financial information related to the non-controlling interests of each
subsidiary:
OTC Clear QME BayConnect

2021 2020 2021 2020 2021 2020
$m $m $m $m $m $m
Amounts allocated to
non-controlling
interests:
(Loss)/profit for the year (13) 9 (15) (13) (9) (14)
Other comprehensive
(loss)/income - - (1) (2) 4 10
Total comprehensive
(loss)/income (13) 9 (16) (15) (5) (4)
At At At At At At
31 Dec 2021 31 Dec 2020 31 Dec 2021 31 Dec 2020 31 Dec 2021 31 Dec 2020
$m $m $m $m $m $m
Accumulated non-
controlling interests 182 195 (44) (28) 146 151
No summarised financial information of OTC Clear, QME and BayConnect is presented as the
non-controlling interests are not material to the Group.
(ii) Significant restrictions
Cash and savings deposits are held by subsidiaries in Mainland China and are subject to
exchange control restrictions. The carrying amount of these restricted assets in the consolidated
statement of financial position at 31 December 2021 was $290 million (31 December 2020:
$327 million).
(b) Controlled structured entities
HKEX controls two structured entities which operate in Hong Kong, particulars of which are as
follows:
Structured entity Principal activities

The HKEx Employees’ Share Award Scheme Purchases, administers and holds HKEX shares for
(HKEX Employee Share Trust) the Share Award Scheme for the benefit of
eligible HKEX employees (note 43)
HKEX Foundation Limited Charitable foundation
HKEX has the power to direct the relevant activities of the HKEX Employee Share Trust and HKEX
Foundation Limited and it has the ability to use its power over the entities to affect its exposure to
returns. Therefore, they are considered as controlled structured entities of the Group.

28. Interests in Joint Ventures
Accounting Policy
Interests in joint ventures are accounted for in the consolidated financial statements under the equity
method. The entire carrying amount of each investment is tested for impairment in accordance with
the accounting policy stated in note 2(d).
At At
31 Dec 2021 31 Dec 2020
$m $m
Share of net assets of joint ventures 244 164
(a) Details of the joint ventures were as follows:
Place of
% of ownership interest
business and
country of At At
Name incorporation Principal activities 31 Dec 2021 31 Dec 2020
China Exchanges Services Hong Kong Development of index- 33% 33%
Company Limited linked and equity
(CESC) derivatives products
Bond Connect Company Hong Kong Provision of support 40% 40%

Limited (BCCL) services related to
Bond Connect
In 2012, HKEX, the Shanghai Stock Exchange and the Shenzhen Stock Exchange established a
joint venture, CESC, with an aim of developing financial products and related services. CESC is a
strategic investment for the Group. It is expected to enhance the competitiveness of Hong Kong, and
it aims to promote the development of Mainland China’s capital markets and the internationalisation
of the Group.
In 2017, HKEX and China Foreign Exchange Trade System (CFETS) established a joint venture,
BCCL, which provides support services related to Bond Connect. BCCL is a strategic investment of
the Group as it provides services to facilitate the trading of Bond Connect, which enhances HKEX’s
position in the fixed income market and expands the mutual market programme from equity into
bonds.
Set out below is the measurement method and the carrying amounts of the two joint ventures:
Carrying amount
At At
Measurement 31 Dec 2021 31 Dec 2020
Name method $m $m
CESC Equity 38 38
BCCL Equity 206 126
244 164
The two joint ventures are private companies and no quoted market prices are available for their
shares.
No summarised financial information of CESC and BCCL is presented as the joint ventures are not
material to the Group.
29. Goodwill and Other Intangible Assets
Accounting Policy
Goodwill
Goodwill arising on the acquisition of subsidiaries is carried at cost as established at the date of
acquisition less accumulated impairment losses, if any.
For the purpose of impairment testing, goodwill acquired in a business combination is allocated to
each CGU, or group of CGUs, that is expected to benefit from the synergies of the combination. Each
CGU or group of CGUs to which the goodwill is allocated represents the lowest level within the entity
at which the goodwill is monitored for internal management purposes (i.e., operating segment level).
Goodwill is not amortised but impairment reviews are undertaken annually or more frequently if events
or changes in circumstances indicate a potential impairment. The carrying value of goodwill is
compared to the recoverable amount, which is the higher of value-in-use and the fair value less costs
to sell. Any impairment is recognised immediately in the consolidated income statement and is not
subsequently reversed.
Tradenames
Tradenames acquired in a business combination are recognised at fair value at the acquisition date.
The fair value is based on the discounted estimated royalty payments that are expected to be avoided
as a result of the tradenames being owned.
Tradenames arising from the acquisition of LME entities have indefinite useful lives and are carried at
cost less accumulated impairment losses, if any.
Tradenames are reviewed annually to determine whether events and circumstances continue to
support the indefinite useful life assessment.
Customer relationships
Customer relationships acquired in a business combination are recognised initially at fair value at the
acquisition date. The fair value is determined using the multi-period excess earnings method, whereby
the asset is valued after deducting a fair return on all other assets that are part of creating the related
cash flows. Subsequently, the customer relationships are carried at cost (i.e., the initial fair value) less
accumulated amortisation and impairment losses, if any. Amortisation is calculated using the straight-
line method over the expected lives of the customer relationships, which are determined to be 8 to 25
years.

29. Goodwill and Other Intangible Assets (continued)

Computer software systems
Development costs that are directly attributable to the design, building and testing of identifiable and
unique software products controlled by the Group are recognised as intangible assets if the related
software does not form an integral part of the hardware on which it operates (i.e., system software
without which the related hardware can still operate) and when the following criteria are met:
 It is technically feasible to complete the software so that it will be available for use;
 Management intends to complete the software and use it;
 There is an ability to use the software;
 It can be demonstrated how the software will generate probable future economic benefits;
 Adequate technical, financial and other resources to complete the development and to use the
software are available; and
 The expenditure attributable to the software during its development can be reliably measured.
Other development expenditures that do not meet these criteria are recognised in the consolidated
income statement as incurred. Development costs previously recognised in the consolidated income
statement are not recognised as an asset in a subsequent period.
Qualifying software system development expenditure and related directly attributable costs capitalised
as intangible assets are amortised when they are available for use. They are amortised at rates
sufficient to write off their costs net of residual values over their estimated useful lives of three to five
years on a straight-line basis. The residual values and useful lives are reviewed, and adjusted if
appropriate, at the end of each reporting period, with the effect of any changes in estimate accounted
for on a prospective basis.
Costs incurred in configuring or customising software in a cloud computing arrangement can only be
recognised as intangible assets if the activities create an intangible asset that the Group controls and
the intangible asset meets the recognition criteria. Those costs that do not result in intangible assets
are expensed when service is delivered, unless they are incurred for customising the cloud-based
software which the promises are not distinct to the cloud computing arrangement, where such costs
are amortised over the contract terms of the cloud computing arrangement.
Costs associated with maintaining computer systems and software programmes are recognised in the
consolidated income statement as incurred.
The Group’s accounting policy for impairment is described in note 2(d).

Other Intangible Assets

Customer Software
Goodwill Tradenames relationships systems Total
$m $m $m $m $m
Cost:
At 1 Jan 2020 13,344 895 3,144 4,174 21,557
Exchange differences (58) (4) (14) 3 (73)
Additions - - - 1,073 1,073
Disposals - - - (45) (45)
At 31 Dec 2020 13,286 891 3,130 5,205 22,512
At 1 Jan 2021 13,286 891 3,130 5,205 22,512

Exchange differences 75 5 18 18 116
Additions - - - 904 904
Disposals - - - (150) (150)
At 31 Dec 2021 13,361 896 3,148 5,977 23,382
Accumulated amortisation:
At 1 Jan 2020 - - 919 2,260 3,179
Exchange differences - - (3) - (3)
Amortisation - - 131 513 644
Disposals - - - (45) (45)
At 31 Dec 2020 - - 1,047 2,728 3,775
At 1 Jan 2021 - - 1,047 2,728 3,775

Exchange differences - - 5 11 16
Amortisation - - 132 637 769
Disposals - - - (150) (150)
At 31 Dec 2021 - - 1,184 3,226 4,410
Net book value:

At 31 Dec 2021 13,361 896 1,964 2,751 18,972
At 31 Dec 2020 13,286 891 2,083 2,477 18,737
Cost of software systems under
development included above:
At 31 Dec 2021 - - - 1,200 1,200
At 31 Dec 2020 - - - 1,143 1,143
Amortisation of $769 million (2020: $644 million) is included in “depreciation and amortisation” in the
consolidated income statement.
Tradenames are regarded as having indefinite useful lives and there is no foreseeable limit to the period
over which they are expected to generate cash flows for the Group as it is expected that their values will
not be reduced through usage and there are no legal or similar limits on the period for their use.

Impairment tests for CGUs containing goodwill and intangible assets with indefinite useful lives
Goodwill and tradenames that arose on the acquisition of subsidiaries are allocated to and monitored
by management at the operating segment level, which comprises CGUs, or groups of CGUs that are
expected to benefit from synergies of combination with the acquired businesses. A summary of the
allocation of goodwill and tradenames to these operating segments is as follows:
At 31 Dec 2021 At 31 Dec 2020
Goodwill Tradenames Goodwill Tradenames
$m $m $m $m
Commodities segment 10,368 702 10,310 698
Post Trade segment 2,873 194 2,858 193
Technology segment 120 - 118 -
13,361 896 13,286 891
The Commodities segment comprises the commodities trading platform in the UK (LME commodities
CGU) and the commodities trading platform in Mainland China (China commodities CGU). As the China
commodities CGU is still considered at development stage, its valuation has not been taken into
account in determining the recoverable amount of the Commodities segment at 31 December 2021.
The recoverable amount of each CGU is determined based on value-in-use calculations. These
calculations use cash flow projections based on financial forecasts approved by management covering
a five-year period. Cash flows beyond the five-year period are extrapolated using the estimated terminal
growth rates stated below. The key assumptions, EBITDA margins, growth rates and discount rates
used for value-in-use calculations are as follows:
At 31 Dec 2021 At 31 Dec 2020
Commodities Post Trade Technology Commodities Post Trade Technology
segment segment segment segment segment segment
EBITDA margin (average
of next five years) 61% 44% 30% 65% 49% 33%
Growth rate 3% 3% 3% 3% 3% 3%
Discount rate 8% 8% 13% 9% 9% 14%
Management determined the EBITDA margins based on past performance, expectations regarding
market development, and the business model the entity undertakes. The growth rates do not exceed
the long-term average growth rate for the business in the markets in which each of the CGUs currently
operates. The discount rates used are pre-tax and reflect specific risks relating to each CGU.
The recoverable amounts of the operating segments based on the estimated value-in-use calculations
were higher than their carrying amounts (including goodwill and tradenames) at 31 December 2021 and
31 December 2020. Accordingly, no provision for impairment loss for goodwill or tradenames is
considered necessary.
If the LME trading fee in the forecast period was 17 per cent lower than forecast, or the discount rate
increased to 10 per cent, the recoverable amount of the Commodities segment would be lower than its
carrying amount. If LME Clear clearing fees in the forecast period was 14 per cent lower than forecast,
or the discount rate increased to 10 per cent, the recoverable amount of LME Clear under the Post
Trade segment would be lower than its carrying amount. Except for this, any reasonably possible
changes in the key assumptions used in the value-in-use assessment would not affect management’s
view on impairment at 31 December 2021.

30. Fixed Assets
Accounting Policy
Tangible fixed assets are stated at historical cost less accumulated depreciation and impairment
losses. Historical cost includes expenditure that is directly attributable to the acquisition of the assets.
Tangible fixed assets are depreciated when they are available for use. They are depreciated at rates
sufficient to write off their costs net of expected residual values over their estimated useful lives on a
straight-line basis. The residual values and useful lives are reviewed at the end of each reporting
period, with the effect of any changes in estimate accounted for on a prospective basis.
The useful lives of major categories of fixed assets are as follows:
Leasehold buildings Up to 35 years or remaining lives of the leases if shorter

Leasehold improvements Over the remaining lives of the leases but not
exceeding 10 years
Computer trading and clearing systems
- hardware and software 3 to 5 years
Other computer hardware and software 3 years
Furniture, equipment and motor vehicles 3 to 5 years
Data centre facilities and equipment 3 to 20 years
Expenditure incurred in the construction of leasehold buildings and other directly attributable costs are
capitalised when it is probable that future economic benefits associated with the expenditure will flow
to the Group and the costs can be measured reliably.
Qualifying software expenditure and related directly attributable costs are capitalised and recognised
as a fixed asset if the software forms an integral part of the hardware on which it operates (i.e.,
operating system software without which the related hardware cannot operate).
Subsequent costs and qualifying development expenditure incurred after the completion of a system
are included in the asset’s carrying amount or recognised as a separate asset only when it is probable
that future economic benefits associated with that item will flow to the Group and the cost of the item
can be measured reliably. All other repairs and maintenance costs and other subsequent expenditure
are charged to the consolidated income statement when incurred.
The Group’s accounting policy for impairment is described in note 2(d).

30. Fixed Assets (continued)

Leasehold
Computer Other improvements,
trading computer Data centre furniture,
and hardware facilities equipment
Leasehold clearing and and and
buildings systems software equipment motor vehicles Total
$m $m $m $m $m $m
Cost:
At 1 Jan 2020 708 1,100 631 440 1,107 3,986
Exchange differences - 5 - - 2 7
Additions - 154 105 7 49 315
Disposals - (49) (105) - (6) (160)
At 31 Dec 2020 708 1,210 631 447 1,152 4,148
At 1 Jan 2021 708 1,210 631 447 1,152 4,148
Exchange differences - 2 2 - 2 6
Additions - 43 62 64 54 223
Disposals - (92) (20) - (9) (121)
At 31 Dec 2021 708 1,163 675 511 1,199 4,256
Accumulated depreciation:
At 1 Jan 2020 206 912 430 196 653 2,397
Exchange differences - 3 - - 2 5
Depreciation 28 46 53 30 91 248
Disposals - (48) (105) - (6) (159)
At 31 Dec 2020 234 913 378 226 740 2,491
At 1 Jan 2021 234 913 378 226 740 2,491
Exchange differences - 2 2 - 2 6
Depreciation 28 59 63 30 95 275
Disposals - (92) (20) - (9) (121)
At 31 Dec 2021 262 882 423 256 828 2,651
Net book value:

At 31 Dec 2021 446 281 252 255 371 1,605
At 31 Dec 2020 474 297 253 221 412 1,657

Cost of fixed assets in
the course of
construction included
above:
At 31 Dec 2021 - 19 72 46 50 187
At 31 Dec 2020 - 150 91 - 102 343
Depreciation of $275 million (2020: $248 million) is included in “depreciation and amortisation” in the

31. Right-of-use Assets
Accounting Policy
A contract is, or contains, a lease if the contract conveys a right to control the use of an identified
asset for a period of time in exchange for consideration. The Group recognises a right-of-use asset
and a lease liability (note 38) at the lease commencement date.
For an asset leased by the Group, the right-of-use asset is initially measured at cost (which
comprises the initial measurement of lease liabilities, initial direct costs, reinstatement costs, any
payments made at or before the commencement date less any lease incentives received), and
subsequently at cost less any accumulated depreciation and impairment losses. The right-of-use
asset is depreciated over the shorter of the asset’s useful life and the lease term on a straight-line
basis.
The Group has applied judgement to determine the lease term of some lease contracts which
includes renewal options. The assessment of whether the Group is reasonably certain to exercise
such options impacts the lease term, which significantly affects the amount of lease liabilities and
right-of-use assets recognised.
Payments associated with short-term leases (i.e., leases with a lease term of 12 months or less) and
low value leases are recognised on a straight-line basis as an expense in the consolidated income
statement.
Equipment
Lease Information and
premium technology motor
for land Properties facilities vehicles Total
$m $m $m $m $m
At 1 Jan 2020 19 2,304 28 15 2,366
Exchange differences - 3 - - 3
Additions of leases - 60 69 - 129
Depreciation (1) (285) (14) (5) (305)
At 31 Dec 2020 18 2,082 83 10 2,193
At 1 Jan 2021 18 2,082 83 10 2,193
Exchange differences - 2 - - 2
Additions and reassessment of leases - 10 - 1 11
Depreciation (1) (288) (16) (5) (310)
At 31 Dec 2021 17 1,806 67 6 1,896
(a) Lease premium for land represents prepaid lease payment for a medium-term lease in Hong Kong.
In addition, the Group leases various properties, information technology facilities, office equipment
and motor vehicles through lease contracts. These contracts are expected to expire within 9 years.
(b) Depreciation of $310 million (2020: $305 million) is included in “depreciation and amortisation” in
the consolidated income statement.

32. Financial Liabilities at Fair Value through Profit or Loss
Accounting Policy
Financial liabilities at fair value through profit or loss are initially recognised at fair value on trade date
and subsequently remeasured at their fair values. Changes in fair value of the liabilities are recognised
in the consolidated income statement.
At At
31 Dec 2021 31 Dec 2020
$m $m
Held by LME Clear in its capacity as a central counterparty
- base, ferrous and precious metals futures and options contracts cleared
through LME Clear (note (a)) 91,424 92,884
91,424 92,884
(a) The amount represents the fair value of outstanding base, ferrous and precious metals futures and
options contracts cleared through LME Clear that do not qualify for netting under HKAS 32: Financial
Instruments - Presentation, where LME Clear is acting in its capacity as a central counterparty to the
contracts traded on the LME.
33. Margin Deposits, Mainland Security and Settlement Deposits, and Cash Collateral from Clearing
Participants
Accounting Policy
The obligation to refund the Margin deposits, Mainland security and settlement deposits, and cash
collateral from Clearing Participants is disclosed under current liabilities. Non-cash collateral received
from Clearing Participants is not recognised on the consolidated statement of financial position.
Margin Funds are established by cash received or receivable from Clearing Participants in respect of
margin deposits, Mainland security and settlement deposits, and cash collateral of the five clearing
houses to cover their open positions. Part of the Mainland security and settlement deposits is used by
HKSCC to satisfy its obligations as a clearing participant of ChinaClear in respect of trades transacted
through Stock Connect. These funds are held in segregated accounts of the respective clearing houses
for this specified purpose and cannot be used by the Group to finance any other activities.

33. Margin Deposits, Mainland Security and Settlement Deposits, and Cash Collateral from Clearing
Participants (continued)
At At
31 Dec 2021 31 Dec 2020
$m $m
Margin deposits, Mainland security and settlement deposits, and cash
collateral from Clearing Participants comprised:
SEOCH Clearing Participants’ margin deposits 21,051 16,873
HKCC Clearing Participants’ margin deposits 56,840 59,422
HKSCC Clearing Participants’ margin deposits, Mainland security and
settlement deposits, and cash collateral 24,353 27,111
OTC Clear Clearing Participants’ margin deposits 7,211 6,899
LME Clear Clearing Participants’ margin deposits 94,081 76,703
203,536 187,008
The margin deposits, Mainland security and settlement deposits, and cash
collateral were invested in the following instruments for managing the
obligations of the Margin Funds (note 20):
Cash and cash equivalents (note 21) 145,586 122,184
Financial assets measured at fair value through other comprehensive
income (note 23) 5,283 5,538
Financial assets measured at amortised cost (note 24) 40,371 47,407
Settlement Reserve Fund and Settlement Guarantee Fund held by
ChinaClear (note 26) 12,757 11,862
Margin receivable from Clearing Participants 7 17
Less: Other financial liabilities of Margin Funds (note (a) and 36) (468) -
203,536 187,008
(a) Other financial liabilities of Margin Funds represent payable for debt securities traded before 31
December.
34. Accounts Payable, Accruals and Other Liabilities
Accounting Policy
Financial liabilities (other than financial liabilities at fair value through profit or loss (note 32) and
financial guarantee contracts (note 36)) are initially recognised at fair value, which is then treated as
their cost after initial recognition, and subsequently carried at amortised cost using the effective
interest method.
At At
31 Dec 2021 31 Dec 2020
$m $m
Payable to ChinaClear and Exchange and Clearing Participants:
- CNS money obligations payable (note 26(a)) 25,293 39,120
- HKD/USD cash collateral for A-shares (note 21(a)(ii)) - 2
- others 429 553
Transaction levy payable to the SFC 158 185
Levies payable to the Financial Reporting Council 32 -
Unclaimed dividends (note (a)) 467 376
Stamp duty payable to the Collector of Stamp Revenue 509 914
Payables for collective investment schemes traded before 31 Dec - 504
Other payables, accruals and deposits received 1,447 1,320
28,335 42,974
34. Accounts Payable, Accruals and Other Liabilities (continued)
(a) Unclaimed dividends represent dividends declared by listed companies, including HKEX, but not yet
claimed by their shareholders. During the year, cash dividends of listed companies other than
HKEX held by HKSCC Nominees Limited which had remained unclaimed for a period of more than
seven years amounting to $12 million (2020: $9 million) were forfeited and recognised as sundry
income (note 8) and dividends declared by HKEX which were unclaimed over a period of six years
amounting to $12 million (2020: $21 million) were forfeited and transferred to retained earnings in
accordance with HKEX’s Articles of Association (note 46).
(b) CNS money obligations payable mature within two days after the trade date. The majority of the
remaining accounts payable, accruals and other liabilities would mature within three months.
35. Deferred Revenue
Accounting Policy
Deferred revenue, or “contract liability” under HKFRS 15, is recognised when the Group receives
consideration (or the amount is due) from the customers before the Group transfers goods or services
to the customers.
At At
31 Dec 2021 31 Dec 2020
$m $m
Deferred revenue arising from unsatisfied performance obligations 1,454 1,420
Analysed as:
Non-current liabilities 354 371
Current liabilities 1,100 1,049
1,454 1,420

36. Other Financial Liabilities
Accounting Policy
A financial guarantee contract is a contract that requires the Group to make specified payments to
reimburse the holder for a loss it incurs because a specified entity or person fails to make payment
when due in accordance with the original or modified terms of an undertaking.
Financial guarantee contracts are initially recognised at fair value, and subsequently at the higher of
the amount determined in accordance with the expected credit loss model and the amount initially
recognised less, where appropriate, the cumulative amount of income recognised in accordance with
the principles of HKFRS 15: Revenue from Contracts with Customers.
At At
31 Dec 2021 31 Dec 2020
$m $m
Financial liabilities of Margin Funds (note 33) 468 -
Financial liabilities of Clearing House Funds (note 37) 25 28
Financial liabilities of Corporate Funds:
Financial guarantee contract (note (a)) 20 20
513 48
(a) The amount represents the carrying value of a financial guarantee provided by the Group to the
Collector of Stamp Revenue, details of which are disclosed in note 49(b).
37. Clearing House Funds
Accounting Policy
Clearing Participants’ cash contributions to Clearing House Funds are included under current liabilities.
Non-cash collateral received from Clearing Participants is not recognised on the consolidated statement
of financial position.
Clearing House Funds, or default funds, are established under the Clearing House Rules. Assets
contributed by the Clearing Participants and the Group are held by the respective clearing houses
(together with the accumulated income less related expenses for the clearing houses in Hong Kong)
expressly for the purpose of ensuring that the respective clearing houses are able to fulfil their
counterparty obligations in the event that one or more of the Clearing Participants fail to meet their
obligations to the clearing houses. The HKSCC Guarantee Fund also provides resources to enable
HKSCC to discharge its liabilities and obligations if defaulting Clearing Participants deposit defective
securities into CCASS. The amounts earmarked for contribution to the Rates and FX Guarantee
Resources of OTC Clear and its accumulated investment income was also included in Clearing House
Funds for presentation purpose. These funds are held in segregated accounts of the respective clearing
houses for this specified purpose and cannot be used by the Group to finance any other activities.
Contributions by HKSCC, HKCC and SEOCH to their respective default funds (Skin-in-the-Game) are
set at 10 per cent of the size of the respective funds, and such contributions, together with default fund
credits granted to HKSCC and HKCC Participants, are included in Corporate Funds.

37. Clearing House Funds (continued)
At At
31 Dec 2021 31 Dec 2020
$m $m
The Clearing House Funds comprised:
Clearing Participants’ cash contributions 19,182 20,439
Contribution to OTC Clear Rates and FX Guarantee Resources 156 156
Clearing House Funds reserves (note 45) 612 628
19,950 21,223
The Clearing House Funds were invested in the following instruments for
managing the obligations of the Funds (note 20):
Cash and cash equivalents (note 21) 15,503 18,847
Financial assets measured at fair value through other comprehensive
income (note 23) 4,472 2,404
Less: Other financial liabilities of Clearing House Funds (note 36) (25) (28)
19,950 21,223
The Clearing House Funds comprised the following Funds:
HKSCC Guarantee Fund 4,552 5,667
SEOCH Reserve Fund 1,851 909
HKCC Reserve Fund 2,055 1,205
OTC Clear Rates and FX Guarantee Fund 2,778 2,730
OTC Clear Rates and FX Guarantee Resources 171 171
LME Clear Default Fund 8,543 10,541
19,950 21,223
(a) At 31 December 2021, the Skin-in-the-Game, together with default fund credits granted to HKSCC
and HKCC Participants (note 53(c)), amounted to $1,267 million (31 December 2020: $1,241
million), and were included in Corporate Funds (note 25(b)).

38. Lease Liabilities
Accounting Policy
A contract is, or contains, a lease if the contract conveys a right to control the use of an identified
asset for a period of time in exchange for consideration. The Group recognises a right-of-use asset
(note 31) and a lease liability at the lease commencement date.
The lease liability is initially measured at the present value of the lease payments that are not paid at
the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot
be readily determined, the lessee’s incremental borrowing rate is used. Generally, the lessee uses its
incremental borrowing rate as the discount rate. The lease liability subsequently increases by the
interest cost on the lease liability and is reduced by lease payments made. Each lease payment is
allocated between the principal and interest expense.
At At
31 Dec 2021 31 Dec 2020
$m $m
Total lease liabilities 2,059 2,358
Analysed as:
Non-current liabilities 1,760 2,054
Current liabilities 299 304
2,059 2,358
Some lease contracts include an option to renew for an additional period after the end of the initial
contract term. Where practicable, the Group seeks to include in all leases such extension options
exercisable by the Group to provide operational flexibility. The Group assesses at the lease
commencement date the likelihood of exercising the extension options, and only include those
reasonably certain to be exercised in the measurement of lease liabilities.

39. Borrowings
Accounting Policy
The potential cash payments related to put options issued by HKEX for the non-voting ordinary
shares of a subsidiary held by non-controlling interests are accounted for as financial liabilities under
borrowings, which are initially recognised at present value of amount payable by HKEX to acquire the
shares held by non-controlling interests with a corresponding charge directly to equity under “reserve
relating to written put options to non-controlling interests”.
The written put option financial liabilities are subsequently measured at amortised cost (i.e., the initial
fair value plus cumulative amortisation of the difference between the initial fair value and the cash
payments related to the put options using the effective interest method). The interest charge arising is
recorded under finance costs in the consolidated income statement.
The written put options liabilities are classified as current liabilities unless the Group has an
unconditional right to defer settlement of the liability for at least twelve months after the end of the
reporting period.
At At
31 Dec 2021 31 Dec 2020
$m $m
Written put options to non-controlling interests 426 423
Analysed as:
Non-current liabilities 86 83
Current liabilities 340 340
426 423
The amounts were repayable as follows:
At At
31 Dec 2021 31 Dec 2020
$m $m
Within one year 340 340
After one year but within two years 86 -
After two years but within five years - 83
426 423
At 31 December 2021, OTC Clear has issued 3,541 non-voting ordinary shares to certain third party
shareholders at a total consideration of $433 million. As part of the arrangement, put options were
written by HKEX to the non-controlling interests to sell part or all of their non-voting ordinary shares in
OTC Clear to HKEX at the initial subscription prices less accumulated dividends received by the non-
controlling interests. The put options are exercisable by the non-controlling interests at any time
following the date falling five years after the shares were issued if the non-controlling interests can
demonstrate to HKEX that they have used reasonable endeavours for at least three months to find a
suitable purchaser for their shares at a price equal to or more than their fair market values. The carrying
amount of written put options represents the present value of the amount payable by HKEX to acquire
the shares held by non-controlling interests at the date at which the written put options first become
exercisable.

39. Borrowings (continued)
At 31 December 2021, $340 million of the written put options were exercisable (31 December 2020:
$340 million) and the remaining $86 million of the options will become exercisable in October 2023.
During the year ended 31 December 2021, none of the written put options was exercised (2020: none).
The effective interest rate of the options before they are exercisable was 3.0 per cent (2020: 3.0 per
cent) per annum.
40. Provisions
Accounting Policy
Provisions are recognised when the Group has a present legal or constructive obligation as a result of
past events, it is probable that an outflow of resources will be required to settle the obligation, and a
reliable estimate of the amount can be made. The amount recognised as a provision is the best
estimate of the consideration required to settle the present obligation at the end of the reporting period.
Reinstatement Employee
costs benefit costs Total
$m $m $m
At 1 Jan 2021 106 106 212
Provision for the year - 112 112
Amount used during the year - (121) (121)
Amount paid during the year (5) (18) (23)
At 31 Dec 2021 101 79 180
Analysed as:
Non-current liabilities 98 - 98
Current liabilities 3 79 82
101 79 180
(a) The provision for reinstatement costs represents the estimated costs of restoring the leased office
premises to their original state upon the expiry of the leases. The leases are expected to expire
within 9 years.
(b) The provision for employee benefit costs represents unused annual leave that has been accumulated
at the end of the reporting period. It is expected to be fully utilised in the coming twelve months.

41. Deferred Taxation
Accounting Policy
Deferred tax is recognised, using the liability method, on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the financial statements, except that
deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill. Deferred
tax is determined using tax rates that have been enacted or substantively enacted by the end of the
reporting period and are expected to apply when the related deferred tax asset is realised or the
deferred tax liability is settled.
Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be
available against which the temporary differences or the current tax losses can be utilised.
(a) The movements on the net deferred tax liabilities/(assets) were as follows:
Accelerated
tax Intangible Employee Financial
depreciation assets1 Tax losses benefits Leases assets Total
2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
$m $m $m $m $m $m $m $m $m $m $m $m $m $m
At 1 Jan 382 305 566 533 (19) (22) (29) (21) (1) (20) 5 - 904 775
Exchange
differences - - 4 (3) - - - - - - - - 4 (3)
Charged/(credited) to
the consolidated
income statement
(note 17(a)) 25 77 135 36 6 3 4 (3) - 19 28 - 198 132
(Credited)/charged to
the consolidated
statement of
comprehensive
income - - - - - - - - - - (1) 5 (1) 5
Charged/(credited)
directly to
retained earnings - - - - - - 2 (5) - - - - 2 (5)
At 31 Dec 407 382 705 566 (13) (19) (23) (29) (1) (1) 32 5 1,107 904
1 Intangible assets include customer relationships and tradenames.
(b) The Group had unrecognised tax losses of $1,810 million at 31 December 2021 (31 December
2020: $1,623 million) that may be carried forward for offsetting against future taxable income. Tax
losses of PRC entities amounting to $772 million (31 December 2020: $662 million) will expire 5
years after the losses were incurred, and the remaining tax losses have no expiry date and can be
carried forward indefinitely.

41. Deferred Taxation (continued)
(c) Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off
current tax assets against current tax liabilities and when the deferred taxes relate to tax levied by
the same taxation authority on the same taxable entity or different taxable entities where there is
an intention to settle the balances on a net basis. The following amounts, determined after
appropriate offsetting, are shown in the consolidated statement of financial position:
At At
31 Dec 2021 31 Dec 2020
$m $m
Deferred tax assets (25) (26)
Deferred tax liabilities 1,132 930
1,107 904
(d) The analysis of deferred tax (assets)/liabilities is as follows:
At At
31 Dec 2021 31 Dec 2020
$m $m
Deferred tax assets
Amounts to be recovered after more than 12 months (23) (25)
Amounts to be recovered within 12 months (2) (1)
(25) (26)
Deferred tax liabilities
Amounts to be settled after more than 12 months 1,114 921
Amounts to be settled within 12 months 18 9
1,132 930
Net deferred tax liabilities 1,107 904

42. Share Capital and Shares Held for Share Award Scheme
Accounting Policy
Shares
Ordinary shares are classified as equity.
Shares held for Share Award Scheme

Where HKEX shares are acquired by the Share Award Scheme from the market or by electing for
scrip in lieu of cash dividends, the total consideration of shares acquired from the market (including
any directly attributable incremental costs) or under the scrip dividend scheme is presented as
Shares held for Share Award Scheme and deducted from total equity.
Upon vesting, the related costs of the vested Awarded Shares purchased from the market and shares
acquired from reinvesting dividends or received under the scrip dividend scheme (dividend shares)
are credited to Shares held for Share Award Scheme, with a corresponding decrease in employee
share-based compensation reserve for Awarded Shares, and decrease in retained earnings for
dividend shares.
Issued and fully paid – ordinary shares with no par:
Number of
shares
held Shares
for held for
Share Share
Number of Award Share Award
shares Scheme1 capital Scheme Total
’000 ’000 $m $m $m
At 1 Jan 2020 1,261,201 (3,274) 30,449 (770) 29,679
Shares issued in lieu of cash dividends (note (a)) 6,636 (45) 1,438 (10) 1,428
Shares purchased for Share Award Scheme (note (b)) - (84) - (31) (31)
Vesting of shares of Share Award Scheme (note (c)) - 1,420 4 326 330
At 31 Dec 2020 1,267,837 (1,983) 31,891 (485) 31,406
At 1 Jan 2021 1,267,837 (1,983) 31,891 (485) 31,406
Shares purchased for Share Award Scheme (note (b)) - (1,455) - (681) (681)
Vesting of shares of Share Award Scheme (note (c)) - 1,067 5 265 270
At 31 Dec 2021 1,267,837 (2,371) 31,896 (901) 30,995
1 Excluding shares vested but not yet transferred to awardees of 33,763 shares at 31 December 2021 (31
December 2020: 307,960 shares)

42. Share Capital and Shares Held for Share Award Scheme (continued)
(a) During the year ended 31 December 2020, the following shares were issued to shareholders who
elected to receive HKEX shares in lieu of cash dividends pursuant to the scrip dividend scheme:
2020
Shares held for
Number of Share Share Award
shares Scrip price capital Scheme Total
$ $m $m $m
Issued as 2019 second interim scrip dividends:
- total 6,635,576 216.70 1,438 - 1,438
- to Share Award Scheme (45,127) 216.70 - (10) (10)
6,590,449 1,438 (10) 1,428
Following the suspension of the scrip dividend scheme from August 2020, no HKEX shares were
issued during the year ended 31 December 2021.
(b) During the year, the Share Award Scheme (note 43) acquired 1,454,300 HKEX shares (2020:
84,000 shares) through purchases on the open market. The total amount paid to acquire the shares
during the year was $681 million (2020: $31 million).
(c) During the year, a total of 1,066,959 HKEX shares (2020: 1,419,931 shares) were vested. The total
cost of the vested shares was $265 million (2020: $326 million). In 2021, $5 million (2020: $4
million) was credited to share capital in respect of vesting of certain shares whose fair values were
higher than the costs.

43. Employee Share-based Arrangements
Accounting Policy
The Group operates the Share Award Scheme (the Scheme), which is an equity-settled share-based
compensation plan under which Awarded Shares are granted to employees of the Group (including
the Executive Director) as part of their remuneration package.
The amount to be expensed as share-based compensation expenses is determined by reference to

the fair value of the Awarded Shares granted, taking into account all non-vesting conditions
associated with the grants on grant date. The total expense is recognised over the relevant vesting
periods (or on the grant date if the shares vest immediately), with a corresponding credit to an
employee share-based compensation reserve under equity.
For those Awarded Shares which are amortised over the vesting periods, the Group revises its
estimates of the number of Awarded Shares that are expected to ultimately vest based on the vesting
conditions at the end of each reporting period. Any resulting adjustment to the cumulative amount
recognised in prior years is charged/credited to employee share-based compensation expense in the
current year, with a corresponding adjustment to the employee share-based compensation reserve.
The movements of employee share-based compensation reserve were as follows:
2021 2020
$m $m
At 1 Jan 232 250
Employee share-based compensation benefits (note 10) 324 281
Vesting of shares of Share Award Scheme (250) (299)
At 31 Dec 306 232
The Scheme allows shares to be granted to employees of the Group, including the Executive Director
(Employee Share Awards).
The awarded amounts for the purchase of shares (Awarded Shares) to eligible employees and/or
selected senior executives (Awarded Sum) are approved by the Board. The Awarded Shares are either
purchased from the market or are awarded by regranting the forfeited or unallocated shares held by the
Scheme. Before vesting, the Awarded Shares are held in a trust set up by the Scheme.
Further shares are derived from dividends payable on the Awarded Shares held in the Scheme from
reinvesting dividends or scrip shares received under the scrip dividend scheme (dividend shares), and
are allocated to the awardees on a pro rata basis and have the same vesting periods as the related
Awarded Shares.

43. Employee Share-based Arrangements (continued)
(a) Employee Share Awards
Employee Share Awards vest progressively over the vesting period after the awards are granted,
provided that the relevant awardee (i) remains employed by the Group (ii) is made redundant or (iii)
is deemed to be a “good leaver”, and Employee Share Awards vest immediately if the relevant
awardee retires on reaching normal retirement age or suffers from permanent disability. Unless
otherwise determined by the Board, the Remuneration Committee or the Chief Executive Officer,
the vesting period of Employee Share Awards granted is three years, and the shares will be vested
in two equal tranches from the second to the third year after the shares are granted.
For awardees who do not meet the vesting criteria, the unvested shares are forfeited. The forfeited
shares are held by the trustee of the Scheme who may award such shares to the other awardees,
taking into consideration recommendations of the Board.
Details of Awarded Shares awarded during 2020 and 2021
Number of Average
Awarded Shares fair value
Date of award awarded per share Vesting period
$
22 Jun 2020 9,700 307.10 17 Jun 2022 - 17 Jun 2023
4 Dec 2020 42,500 389.08 8 Feb 2021 - 8 Feb 2024
13 May 2021 600 442.39 31 Mar 2022 - 31 Mar 2023
13 May 2021 727,0881 439.26 9 Dec 2022 - 9 Dec 2023
2 Jun 2021 211,7562 484.20 24 May 2022 - 24 May 2023
6 Sep 2021 5,300 493.22 6 Feb 2022 - 11 Feb 2024
29 Sep 2021 6,100 474.48 13 Jan 2022 - 13 Jan 2024
30 Sep 2021 200 478.82 11 Feb 2022 - 11 Feb 2024
30 Sep 2021 400 479.36 13 Jan 2022 - 13 Jan 2024
12 Nov 2021 900 466.12 27 Mar 2022 - 24 Mar 2024
30 Nov 2021 21,200 435.15 30 Nov 2023 - 30 Nov 2024
1 261,516 shares were awarded by re-granting the forfeited or unallocated shares held by the Scheme
2 The shares were awarded to HKEX’s Chief Executive Officer.
In addition to the above, total Awarded Sum amounting to $377 million were also granted to
selected employees in 2021. At 31 December 2021, the shares had not yet been awarded to the
employees.
Details of Awarded Shares (excluding dividend shares) vested during 2020 and 2021
During the year, 1,011,400 HKEX shares (2020: 1,112,075 shares) were vested at an aggregate
fair value of $250 million (2020: $257 million), of which none of shares were for the HKEX’s Chief
Executive Officer (2020: 146,156 shares were for the then HKEX’s Chief Executive).

43. Employee Share-based Arrangements (continued)
(b) Summary of Awarded Shares awarded and dividend shares
Movements in number of Awarded Shares awarded and dividend shares
2021 2020
Number of Awarded Shares and dividend shares:
Outstanding at 1 Jan 1,722,044 3,272,042
Awarded3 973,544 52,200
Forfeited (155,227) (246,576)
Vested (1,011,400) (1,339,766)
Dividend shares:
- allocated to awardees 37,818 73,046
- allocated to awardees but subsequently forfeited (5,009) (8,737)
- vested4 (55,559) (80,165)
Outstanding at 31 Dec 1,506,211 1,722,044
3 Average fair value per share was $449.51 (2020: $373.85).
4 In 2021, 55,559 dividend shares (2020: 80,165 shares), of which none of shares were for the HKEX’s Chief
Executive Officer (2020: 21,065 shares were for the then HKEX’s Chief Executive), at a cost of $20 million
(2020: $21 million) were vested.
Remaining vesting periods or performance period of Awarded Shares awarded and dividend shares
outstanding at 31 December
At 31 Dec 2021 At 31 Dec 2020

Number of Number of
Awarded Shares Awarded Shares
and and
Remaining vesting or dividend shares Remaining vesting or dividend shares
performance period outstanding performance period outstanding
Shares awarded in
2018 0.05 year 117 0.05 year to 1.05 years 523,567
2019 0.19 year to 0.95 year 497,700 0.11 year to 1.95 years 1,093,163
2020 0.11 year to 2.11 years 38,600 0.11 year to 3.11 years 52,200
2021 0.04 year to 2.92 years 939,430 - -
Dividend shares 0.05 year to 2.11 years 30,364 0.05 year to 2.46 years 53,114
1,506,211 1,722,044
(c) Total number of shares held by Share Award Scheme
At At
31 Dec 2021 31 Dec 2020
Number of Awarded Shares and dividend shares (note (b)) 1,506,211 1,722,044
Forfeited or unallocated shares5 864,690 261,516
Number of shares held by Share Award Scheme6 (note 42) 2,370,901 1,983,560
5 The shares will be granted to eligible employees in future.

6 Excluding shares vested but not yet transferred to awardees of 33,763 shares at 31 December 2021 (31
December 2020: 307,960 shares).

44. Hedging and Revaluation Reserves
At At
31 Dec 2021 31 Dec 2020
$m $m
Hedging reserve (note (a)) (2) -
Revaluation reserve (note (b)) 17 25
15 25
(a) Hedging reserve
Accounting Policy
The Group designates certain bank balances as hedges of foreign exchange risks associated with
the cash flows of highly probable forecast transactions (cash flow hedges).
The Group documents at the inception of the transaction the relationship between hedging
instruments and hedged items, as well as its risk management objectives and strategies for
undertaking various hedge transactions. The Group also documents its assessment, both at
hedge inception and on an ongoing basis, of whether the hedging instruments have been and will
continue to be highly effective in offsetting changes in cash flows of hedged items.
The changes in the fair value relating to the effective portion of hedging instruments that are
designated and qualify as cash flow hedges is recognised in other comprehensive income and
accumulated in hedging reserve in equity. The gains or losses relating to the ineffective portion
are recognised immediately in the consolidated income statement.
Amounts accumulated in hedging reserve are reclassified to the consolidated income statement in
the periods when the hedged item is recognised in the consolidated income statement. Where the
hedged item subsequently results in the recognition of a non-financial asset (such as fixed
assets), the amounts accumulated in hedging reserve are reclassified and included in the initial
measurement of the cost of the asset.
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for
hedge accounting, any cumulative gain or loss existing in hedging reserve at that time remains in
hedging reserve and is recognised when the forecast transaction is ultimately recognised in the
consolidated income statement. When a forecast transaction is no longer expected to occur, the
cumulative gain or loss that is retained in hedging reserve is immediately reclassified to the
The movements of hedging reserve were as follows:
2021 2020
$m $m
At 1 Jan - 6
Cash flow hedges:
- net fair value (losses)/gains of hedging instruments (7) 10
- reclassified to the consolidated income statement as staff costs and related
expenses (note (i)) 3 (15)
- reclassified to the consolidated income statement as information
technology and computer maintenance expenses (note (i)) - (1)
- reclassified to intangible assets (note (i)) 2 -
At 31 Dec (2) -
Fair value of hedging instruments at 31 Dec 341 -

44. Hedging and Revaluation Reserves (continued)
(a) Hedging reserve (continued)
(i) The functional currencies of LME and LME Clear are United States Dollars (USD). To hedge
the foreign currency exposure of their operating expenses, these entities have designated
certain bank balances of Pound sterling (GBP) as cash flow hedges for hedging the foreign
exchange risk of their staff costs and related expenses, information technology and computer
maintenance expenses and intangible assets. At 31 December 2021, GBP32.3 million of the
bank balances was outstanding (31 December 2020: GBP Nil).
(ii) The total amounts arising from ineffective cash flow hedges recognised in the consolidated
income statement of the Group during the year amounted to $Nil (2020: $Nil).
(b) Revaluation reserve

2021 2020
$m $m
At 1 Jan 25 (3)
Changes in fair value of financial assets measured at fair value through other
comprehensive income (9) 33
Deferred tax on financial assets measured at fair value through other
comprehensive income 1 (5)
At 31 Dec 17 25

45. Designated Reserves
At At
31 Dec 2021 31 Dec 2020
$m $m
Clearing House Funds reserves (notes (a) and 37) 612 628
PRC statutory reserve (note (b)) 11 -
At 31 Dec 623 628
(a) Clearing House Funds reserves
OTC Clear
HKSCC SEOCH HKCC OTC Clear Rates and FX
Guarantee Reserve Reserve Rates and FX Guarantee
Fund Fund Fund Guarantee Resources
reserve reserve reserve Fund reserve reserve Total
$m $m $m $m $m $m
At 1 Jan 2020 174 111 239 51 12 587
Surplus of net
investment income
net of expenses of
Clearing House
Funds transfer from
retained earnings
(note 46) 11 2 5 20 3 41
At 31 Dec 2020 185 113 244 71 15 628
At 1 Jan 2021 185 113 244 71 15 628

(Deficit)/surplus of net
investment income
net of expenses of
Clearing House
Funds transfer
(to)/from retained
earnings (note 46) (20) 1 - 3 - (16)
At 31 Dec 2021 165 114 244 74 15 612
(b) PRC statutory reserve

2021 2020
$m $m
At 1 Jan - -
Transfer from retained earnings (note 46) 11 -
At 31 Dec 11 -
Upon relevant PRC laws, each of the subsidiaries in Mainland China is required to appropriate
10 per cent of its net profit to a non-distributable statutory reserve until such reserve reaches 50
per cent of the subsidiary’s registered capital. The statutory reserve can be utilised, upon
approval by the shareholders of the subsidiary, to offset accumulated losses or to increase the
paid-in capital of the subsidiary, provided that the balance of the reserve after transfer to paid-
up capital is not less than 25 per cent of the subsidiary’s registered capital.

46. Retained Earnings
2021 2020
$m $m
At 1 Jan 17,214 14,204
Profit attributable to shareholders 12,535 11,505
Transfer from/(to) Clearing House Funds reserves (note 45(a)) 16 (41)
Transfer to PRC statutory reserve (note 45(b)) (11) -
Dividends:
2020/2019 second interim dividend (5,646) (3,761)
2021/2020 first interim dividend (5,934) (4,692)
Unclaimed HKEX dividends forfeited (note 34(a)) 12 21
Vesting of shares of Share Award Scheme (20) (31)
UK tax relating to Share Award Scheme 7 9
At 31 Dec 18,173 17,214

47. Notes to the Consolidated Statement of Cash Flows
(a) Reconciliation of profit before taxation to net cash inflow from principal operating activities
2021 2020
$m $m
Adjustments for:
Net interest income (766) (1,773)
Net fair value gains on financial assets mandatorily measured at
fair value through profit or loss and financial liabilities at fair
value through profit or loss (485) (487)
Finance costs 154 181
Depreciation and amortisation 1,354 1,197
Employee share-based compensation benefits 324 281
Share of profits less losses of joint ventures (80) (69)
Other non-cash adjustments (43) 12
Net increase in financial assets of Margin Funds (17,005) (44,439)
Net increase in financial liabilities of Margin Funds 16,996 44,472
Net decrease/(increase) in Clearing House Fund financial assets 1,276 (6,075)
Net (decrease)/increase in Clearing House Fund financial liabilities (1,260) 6,034
Increase in cash prepayments and collateral for A-shares (1,160) (4,752)
Increase in Corporate Funds used for supporting Skin-in-the-
Game and default fund credits (26) (423)
Decrease/(increase) in accounts receivable, prepayments and deposits 15,389 (14,901)
(Decrease)/increase in other liabilities (14,197) 19,957
Net cash inflow from principal operations 15,319 12,559
Interest received from financial assets measured at amortised cost and
cash and cash equivalents 775 2,066
Interest paid to Participants (47) (349)
Income tax paid (2,150) (2,320)
Net cash inflow from principal operating activities 13,897 11,956

47. Notes to the Consolidated Statement of Cash Flows (continued)
(b) Reconciliation of liabilities arising from financing activities
Lease
Borrowings liabilities
$m $m
At 1 Jan 2020 418 2,506
Additions of leases - 127
Interest on borrowings (note 14) 5 -
Interest on lease liabilities (note 14) - 89
Cash flows
- Payments of capital elements of lease liabilities - (284)
- Payments of interest elements of lease liabilities - (89)
Exchange differences - 9
At 31 Dec 2020 423 2,358
At 1 Jan 2021 423 2,358
Additions and reassessment of leases - 10
Interest on borrowings (note 14) 3 -
Interest on lease liabilities (note 14) - 79
Cash flows
- Payments of capital elements of lease liabilities - (310)
- Payments of interest elements of lease liabilities - (79)
Exchange differences - 1
At 31 Dec 2021 426 2,059
(c) Cash outflow for leases
Amounts for leases included in the consolidated statement of cash flow comprise the following:
2021 2020
$m $m
Within operating cash flows (1) (4)
Within financing cash flows (389) (373)
Total lease rental paid (390) (377)
48. Commitments
Commitments in respect of capital expenditures

At At
31 Dec 2021 31 Dec 2020
$m $m
Contracted but not provided for:
- fixed assets 21 15
- intangible assets 175 146
Authorised but not contracted for:
- fixed assets 361 260
- intangible assets 258 469
815 890

49. Contingent Liabilities
Accounting Policy
A contingent liability is a possible obligation that arises from past events and whose existence will only
be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly
within the control of the Group. It can also be a present obligation arising from past events that is not
recognised because it is not probable that outflow of economic resources will be required or the
amount of obligation cannot be measured reliably.
A contingent liability is not recognised but is disclosed in the consolidated financial statements. When
a change in the probability of an outflow occurs so that outflow is probable or when the amount of
obligation becomes reliably measurable, it will then be recognised as a provision.
At 31 December 2021, the Group’s material contingent liabilities were as follows:
(a) The Group had a contingent liability in respect of potential calls to be made by the SFC to replenish
all or part of compensation less recoveries paid by the Unified Exchange Compensation Fund
established under the repealed Securities Ordinance up to an amount not exceeding $71 million (31
December 2020: $71 million). Up to 31 December 2021, no calls had been made by the SFC in this
connection.
(b) The Group had undertaken to indemnify the Collector of Stamp Revenue against any
underpayment of stamp duty by its Participants of up to $200,000 for each Participant (note 36(a)).
In the unlikely event that all of its 638 trading Participants (31 December 2020: 635) covered by the
indemnity at 31 December 2021 defaulted, the maximum contingent liability of the Group under the
indemnity would amount to $128 million (31 December 2020: $127 million).
(c) HKEX had given an undertaking in favour of HKSCC to contribute up to $50 million in the event of
HKSCC being wound up while it is a wholly-owned subsidiary of HKEX or within one year after
HKSCC ceases to be a wholly-owned subsidiary of HKEX, for payment of the liabilities of HKSCC
contracted before HKSCC ceases to be a wholly-owned subsidiary of HKEX, and for the costs of
winding up.

50. Connected Transactions and Material Related Party Transactions
(a) Connected transactions and related party transactions
Certain Directors of HKEX may be directors and/or shareholders of (i) Exchange Participants of the
Stock Exchange, Futures Exchange, the LME and QME (Exchange Participants) and Clearing
Participants of HKSCC, HKCC, SEOCH, LME Clear and OTC Clear (Clearing Participants);
(ii) companies listed on the Stock Exchange; and (iii) Exchange Participants for buying shares on
behalf of HKSCC. Securities and derivatives contracts traded by, and fees levied on, these
Exchange Participants and Clearing Participants, fees levied on these listed companies and fees
paid to these Exchange Participants for buying shares on behalf of HKSCC are all undertaken in
the ordinary course of business of the Group on the standard terms and conditions applicable to all
other Exchange Participants, Clearing Participants, listed companies and Exchange Participants for
buying shares on behalf of HKSCC.
(b) Material related party transactions
In addition to the above and those disclosed elsewhere in these consolidated financial statements,
the Group entered into the following material related party transactions:
(i) Key management personnel compensation

2021 2020
$m $m
Salaries and other short-term employee benefits 173 233
Employee share-based compensation benefits 104 68
Retirement benefit costs 7 8
284 309
(ii) Post-retirement benefit plans

The Group has sponsored an ORSO Plan and the LME Pension Scheme as its post-retirement
benefit plans (note 10(a)).
(iii) Save as aforesaid, the Group has entered into other transactions in the ordinary course of
business with companies that are related parties but the amounts were immaterial.

51. Pledges of Assets
LME Clear receives securities and gold bullion as non-cash collateral for margins posted by its Clearing
Participants. The total fair value of this non-cash collateral was US$971 million (HK$7,570 million) at 31
December 2021 (31 December 2020: US$2,241 million (HK$17,376 million)). LME Clear is obliged to
return this non-cash collateral upon request when the Clearing Participants’ collateral obligations have
been substituted with cash collateral or otherwise discharged. LME Clear is permitted to sell or pledge
such collateral in the event of the default of a Clearing Participant. Any non-cash collateral lodged at
central securities depositories or custodians is subject to a lien or pledge for the services they provide in
respect of the collateral held.
LME Clear also holds securities as collateral in respect of its investments in overnight triparty reverse
repurchase agreements under which it is obliged to return equivalent securities to the counterparties at
maturity of the reverse repurchase agreements. The fair value of this collateral was US$13,513 million
(HK$105,351 million) at 31 December 2021 (31 December 2020: US$11,486 million (HK$89,061
million)). Such non-cash collateral, together with certain financial assets amounting to US$400 million
(HK$3,117 million) at 31 December 2021 (31 December 2020: US$496 million (HK$3,845 million)),
have been pledged to LME Clear’s investment agent and custodian banks under security arrangements
for the settlement and depository services they provide in respect of the collateral and investments held.
Non-cash collateral is not recorded on the consolidated statement of financial position of the Group.
52. Capital Management
The Group’s objectives when managing capital are:
 To safeguard the Group’s ability to continue as a going concern, so that it continues to provide
returns for shareholders and benefits for other stakeholders;
 To support the Group’s stability and growth;
 To provide capital for the purpose of strengthening the Group’s risk management capability; and
 To ensure that the Group’s regulated entities comply with their respective regulatory capital
requirements.
The Group actively and regularly reviews and manages its capital structure to ensure an optimal capital
structure and shareholder returns. The Group takes into consideration the expected capital
requirements and capital efficiency, regulatory capital requirements of its regulated entities, prevailing
and projected profitability, projected operating cash flows, projected capital expenditures and projected
strategic investment opportunities.

52. Capital Management (continued)
The Group has a number of regulated entities that are subject to regulatory capital requirements set by
the respective regulators. The regulatory capital requirements of the Group’s subsidiaries at 31
December 2021 are summarised as follows:
Subsidiaries Regulatory authority Regulatory capital requirements

Stock Exchange, SFC, Hong Kong Maintain at all times net current assets funded by equity
Futures sufficient to cover each subsidiary’s projected total
Exchange operating expenses for at least the following six months
(approximately $1,674 million), and net current assets
funded by equity or long-term loans from HKEX sufficient to
cover its projected total operating expenses for at least the
following twelve months (approximately $3,348 million).
HKSCC, HKCC, SFC, Hong Kong Maintain at all times liquid net assets funded by equity (i.e.,
SEOCH, liquid assets of Corporate Funds (excluding those solely
OTC Clear used to support Skin-in-the-Game and default fund credits
of Clearing House Funds) minus non-current liabilities)
sufficient to cover each subsidiary’s projected total
operating expenses for at least the following six months
(approximately $809 million), and net current assets funded
by equity or long-term loans from HKEX (excluding those
solely used to support Skin-in-the-Game and default fund
credits of Clearing House Funds) sufficient to cover its
projected total operating expenses for at least the following
twelve months (approximately $1,618 million).
LME The Financial Conduct Maintain at all times net capital and liquid financial
Authority, UK resources of at least the costs of orderly closure plus a risk
based capital charge, amounting to US$81.5 million
(approximately HK$635 million).
LME Clear Bank of England, UK Maintain cash or highly liquid financial instruments with
minimal market and credit risk, amounting to US$98.5
million (HK$768 million), plus 10 per cent minimum
reporting threshold of US$9.9 million (HK$77 million) and
US$24.6 million (HK$192 million) financial resources
available to set off losses in the event of default. Capital
resources must be in the form of share capital, retained
earnings and reserves, reduced by intangible assets and
retained losses.
At 31 December 2021, the Group had set aside $4,000 million (31 December 2020: $4,000 million) of
shareholders’ funds for the purpose of supporting the risk management regime of the clearing houses in
their roles as central counterparties, of which $2,160 million (31 December 2020: $2,160 million) had
been injected into HKSCC, HKCC and SEOCH as share capital.

52. Capital Management (continued)
All regulated entities of the Group had adequate capital to meet their regulatory requirements at 31
December 2021 and 31 December 2020.
The Group adopts a dividend policy of providing shareholders with regular dividends with a normal
target payout ratio of 90 per cent of the Group’s profit of the year (excluding the financial results of
HKEX Foundation Limited) and it may also offer a scrip dividend alternative to shareholders if
considered appropriate. The consideration of share capital issued under the scrip dividend scheme (if
any), together with the 10 per cent of the profit not declared as dividends, are retained as capital of the
Group for future use.
The Group monitors capital on the basis of its gross gearing ratio (i.e., gross debt divided by adjusted
capital) and net gearing ratio (i.e., net debt divided by adjusted capital). For this purpose, the Group
defines gross debt as the total borrowings (excluding lease liabilities), net debt as gross debt less cash
and cash equivalents of Corporate Funds (excluding those reserved for supporting Skin-in-the-Game
and default fund credits of Clearing House Funds), and adjusted capital as all components of equity
attributable to shareholders of HKEX other than designated reserves. The Group’s strategy is to
maintain the ratios at less than 50 per cent.
At At
31 Dec 2021 31 Dec 2020
$m $m
Borrowings (note 39) 426 423
Less:
Cash and cash equivalents of Corporate Funds (note 21) 12,900 10,753
Less: Amounts reserved for supporting Skin-in-the-Game and default
fund credits of Clearing House Funds (note 21(b)) (502) (311)
(12,398) (10,442)
Net debt (note (a)) - -
Equity attributable to shareholders of HKEX 49,626 48,918
Less: Designated reserves (note 45) (623) (628)
Adjusted capital 49,003 48,290
Gross gearing ratio 1% 1%
Net gearing ratio 0% 0%
(a) Net debt is zero when the amount of cash and cash equivalents of Corporate Funds (excluding
those reserved for supporting Skin-in-the-Game and default fund credits of Clearing House Funds)
is higher than gross debt.

53. Financial Risk Management
The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange
risk, price risk and interest rate risk), liquidity risk and credit risk. The Group’s overall risk management
programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse
effects on the Group’s performance.
(a) Market risk
Nature of risk
Market risk is the risk of loss arising from movements in observable market variables such as
foreign exchange rates, equity prices and interest rates. The Group is exposed to market risk
primarily through its financial assets and financial liabilities (including borrowings and lease
liabilities). The Group is also exposed to credit-contingent market risk arising from the default of
Clearing Participants, which is further elaborated under credit risk (note (c)).
Risk management
The Group’s investment policy is to prudently invest all funds managed by the Group in a manner
which will satisfy liquidity requirements, safeguard financial assets and manage risks while
optimising return on investments.
Investment and fund management by HKEX and the Group’s subsidiaries is governed by the HKEX
Group Investment Guidelines, which are approved by the Board and reviewed regularly. Investment
restrictions and guidelines set out in the Investment Guidelines form an integral part of risk control.
Fund-specific restrictions and guidelines are set according to the investment objectives of each fund
(i.e., Corporate Funds, Clearing House Funds, Margin Funds and Cash for A-shares). Specific limits
are set for each fund to control risks (eg, permissible asset type, asset allocation, liquidity, credit
requirement, counterparty concentration, maturity, foreign exchange exposures, interest rate risks
and stress loss limits under extreme but plausible conditions) of the investments.
A portion of the Corporate Funds is invested in collective investment schemes (External Portfolio)
under the External Investment Guidelines. The guidelines include an asset allocation policy which
aims to preserve and enhance the return of the External Portfolio by investing in a diverse mix of
asset classes whose returns are not highly correlated to each other over time to mitigate portfolio
volatility and asset class concentration risk. The guidelines also define the risk-return parameters
for the External Portfolio and restrictions to be observed, and the governance structure on selection
and monitoring of fund managers. The fund managers of the collective investment schemes are
selected based on their performance track records and areas of expertise, and each should be
financially strong and stable, and their selections are approved by the Investment Committee as
delegated by the Board. Specific risk management limits are set for the External Portfolio (eg,
permissible asset type, asset allocation, liquidity, foreign exchange exposures and stress loss limits
under extreme but plausible conditions).
The Investment Committee, comprised of Non-executive Directors of HKEX, advises the Board on
portfolio management and monitors the risk and performance of HKEX’s investments. A Treasury
team in the Finance Division is dedicated to the day-to-day management and investment of the
internally-managed funds, and monitor the performance of the External Portfolio.

53. Financial Risk Management (continued)
(a) Market risk (continued)
(i) Foreign exchange risk
Nature of risk
Foreign exchange risk is the risk that the value or cash flows of an asset, liability or forecast
transaction denominated in foreign currency (i.e., a currency other than the functional currency
of the entity to which the transactions relate) will fluctuate because of changes in foreign
exchange rates. The functional currency of the Hong Kong and PRC entities are either HKD or
Renminbi (RMB) and the functional currency of the LME entities is USD. Foreign exchange risks
arise mainly from the Group’s investments and bank deposits in currencies other than HKD and
USD and its GBP expenditure for the LME entities.
Risk management
The Group manages its foreign exchange rate risks by setting limits of net foreign currency
unhedged positions held from single currency and on an aggregated basis.
Forward foreign exchange contracts and foreign currency bank deposits may be used to hedge
the currency exposure of the Group’s non-HKD and non-USD assets and liabilities and highly
probable forecast transactions to mitigate risks arising from fluctuations in exchange rates. In
particular, the LME entities may designate certain GBP bank balances and forward foreign
exchange contracts as cash flow hedges for hedging the foreign exchange risk of certain
operating expenses.
Under the Investment Guidelines, investment in non-HKD financial instruments is subject to the
following restrictions:
 For the External Portfolio, at least 50 per cent of the External Portfolio must be invested in
HKD or USD investments or investments hedged back to HKD or USD, except that a further
HK$500 million can be invested in RMB investments.
 For internally-managed Corporate Funds, Clearing House Funds, Margin Funds and Cash
for A-shares, unhedged investments in currencies other than HKD or USD must fully match
the respective liabilities or forecast payments for the funds. Unhedged investments in USD
may not exceed 20 per cent of the respective funds and unhedged investments in RMB for
internally-managed Corporate Funds may not exceed RMB1 billion.
For LME Clear, investments of the Margin Fund and Default Fund will generally be in the
currency in which cash was received.

(i) Foreign exchange risk (continued)
Exposure
The following table details the Group’s financial assets and financial liabilities denominated in a
currency other than the functional currency of the entity to which they relate and the net open
foreign currency positions (i.e., gross positions less forward foreign exchange contracts and
other offsetting exposures (hedges)), at 31 December presented in HKD equivalents.
At 31 Dec 2021 At 31 Dec 2020

Gross Net Gross Net
open open open open
Foreign position Hedges position position Hedges position
currency $m $m $m $m $m $m
Financial assets1 EUR 4,476 (4,471) 5 3,902 (3,897) 5
GBP 13,111 (12,837)3 274 5,499 (5,193) 306
JPY 829 (828) 1 4,908 (4,906) 2
RMB 26,462 (25,921) 541 25,951 (25,602) 349
USD 11,282 (8,745) 2,537 7,285 (4,353) 2,932
Others 4 (2) 2 6 (1) 5
Financial liabilities2 EUR (4,471) 4,471 - (3,897) 3,897 -

GBP (12,770) 12,496 (274) (5,469) 5,193 (276)
JPY (828) 828 - (4,906) 4,906 -
RMB (25,924) 25,921 (3) (25,606) 25,602 (4)
USD (9,303) 8,745 (558) (4,918) 4,354 (564)
Others (3) 2 (1) (6) 1 (5)
Total net open EUR 5 5
positions for GBP - 30
the Group JPY 1 2
RMB 538 345
USD 1,979 2,368
Others 1 -
2,524 2,750
1 Financial assets comprised cash and cash equivalents, financial assets measured at fair value through
profit or loss (excluding collective investment schemes), financial assets measured at fair value through
other comprehensive income, financial assets measured at amortised cost, and accounts receivable and
deposits.
2 Financial liabilities comprised margin deposits, Mainland security and settlement deposits, and cash
collateral from Clearing Participants, Participants’ contributions to Clearing House Funds, financial
liabilities at fair value through profit or loss, borrowings, lease liabilities, and accounts payable and other
liabilities.
3 Includes $341 million of bank deposits designated as cash flow hedges (note 44(a))
(ii) Equity and commodity price risk
Nature of risk
The Group is exposed to equity price risk from equity investments in collective investment
schemes held as part of the External Portfolio. The Group is also exposed to equity price risk
on the investments in minority stakes in unlisted companies (note 53(d)(i)).
The movements of fair value of base, ferrous and precious metals futures and options contracts
cleared through LME Clear would not have any financial impact on the Group’s results as the
assets and liabilities will move by the same amount and fully offset each other.

(ii) Equity and commodity price risk (continued)
Risk management
The Group sets prudent investment limits and restrictions to control investments in collective
investment schemes and a stress loss limit is set to limit its exposures. The Group selects fund
managers after an extensive assessment of the underlying funds, their strategy and the overall
quality of the fund managers, and the performance of the funds is monitored on a monthly basis,
or on an ad hoc basis during adverse market conditions.
(iii) Interest rate risk
Nature of risk
There are two types of interest rate risk:
 Fair value interest rate risk - the risk that the value of a financial instrument will fluctuate
because of changes in market interest rates; and
 Cash flow interest rate risk - the risk that the future cash flows of a financial instrument will
fluctuate because of changes in market interest rates.
The Group is exposed to both fair value and cash flow interest rate risks as the Group has
significant assets and liabilities (including borrowings) which are interest-bearing.
Risk management
The Group manages its interest rate risks by setting a stress loss limit to limit its exposure.
Limits are also set for maturity of the investments under the internally managed funds.
Exposure
The following tables present the carrying value and highest and lowest contractual interest rates
of the financial assets held by the Group (excluding investments in collective investment
schemes, zero-coupon Exchange Fund Bills, and bank deposits held at savings and current
accounts) at 31 December:
Fixed rate financial assets Floating rate financial assets

At At At At
31 Dec 2021 31 Dec 2020 31 Dec 2021 31 Dec 2020
$m $m $m $m
Carrying value ($m) 88,992 84,696 103,998 89,503
Highest contractual interest rates 3.50% 3.25% 1.21% 1.33%
Lowest contractual interest rates1 0.07% 0.03% -3.54% -2.00%
1 The contractual interest rates for certain reverse repurchase investments denominated in Euro held by
LME Clear were below 0 per cent.

(iv) Sensitivity analysis
Investments other than collective investment schemes

The Group also uses Value at Risk (VaR) and portfolio stress testing to identify and measure
foreign exchange risk and interest rate risks of the Group’s investments other than collective
investment schemes.
VaR measures the expected maximum loss over a given time interval (a holding period of 10
trading days is used by the Group) at a given confidence level (95 per cent confidence interval
is adopted by the Group) based on historical data (one year is used by the Group).
VaR is a statistical measure of risks and has limitations associated with the assumptions
employed. The calculation is based on historical simulation and therefore vulnerable to sudden
changes in market behaviour. The use of a 10-day holding period may be insufficient at times of
severe illiquidity. Also, VaR does not necessarily reflect all aspects of risks that affect the price
of financial instruments and may underestimate real market risk exposure. In addition, VaR
does not factor in the possibility of catastrophic risks but the use of stress testing for abnormal
market conditions can mitigate this limitation.
The VaR for each risk factor and the total VaR of the investments other than collective
investment schemes and related hedges of the Group at 31 December were as follows:
At At
31 Dec 2021 31 Dec 2020
$m $m
Foreign exchange risk 19 16
Interest rate risk 16 18
Total VaR 25 19
VaR for each risk factor is the independently derived largest potential loss due to fluctuations
solely in that risk factor. The individual VaRs did not add up to the total VaR as there was
diversification effect due to correlation amongst the risk factors.

(iv) Sensitivity analysis (continued)
Collective investment schemes

At 31 December, the fair value of the Group’s collective investment schemes (Funds) by
strategy employed was as follows:
At At
31 Dec 2021 31 Dec 2020
Strategy $m $m
Public Equities 1,774 1,684
Diversifiers1 4,949 4,130
Government Bonds and Mortgage-backed Securities 2,020 1,679
Total 8,743 7,493
Number of Funds 34 25
1
Diversifiers comprise Absolute Return and Multi-Sector Fixed Income asset classes.
The Group monitors the market value sensitivity of the Funds through a high-level simulation of
the Funds’ 1-year Value at Risk (simplified 1-year VaR) using the Funds’ returns and volatilities.
The simplified 1-year VaR helps to determine the potential changes in the market values of the
Funds over a 1-year period. At 31 December 2021, the simplified 1-year VaR calculated at a 95
per cent confidence interval was 1.0 per cent (31 December 2020: 1.5 per cent), implying that
the market value of the Group’s Funds could potentially change by approximately $87 million
(2020: $112 million).
The simplified 1-year VaR is computed using historical monthly returns of the Funds with the
following steps:
1. Compute blended monthly returns of the Group’s Funds using monthly historical returns of
the respective Funds for the past 36 months, and their corresponding portfolio weights as of
the latest month;
2. Compute the average monthly return and standard deviation of the Funds’ returns and
derive the annualised amounts; and
3. Compute the simplified 1-year VaR, at a 95 per cent confidence interval, by subtracting 1.65
times of the annualised standard deviation from the annualised average return.
The simplified 1-year VaR is a statistical measure of the historical risks and has limitations
associated with the assumptions employed. Historical simulation assumes that actual observed
historical changes in the respective Funds’ monthly performance reflect possible future
changes. This implies that the approach is vulnerable to sudden changes in market behaviour.
In addition, it does not cover stressed market events, nor does it represent the Group’s forecast
of the Funds’ future returns.

(b) Liquidity risk
Nature of risk
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with
financial liabilities that are settled by delivering cash or another financial asset, and it results from
amount and maturity mismatches of assets and liabilities.
Risk management
The Group employs projected cash flow analysis to manage liquidity risk by forecasting the amount
of cash required and monitoring the working capital of the Group to ensure that all liabilities due and
known funding requirements could be met.
Investments are kept sufficiently liquid to meet operational needs and regulatory requirements, and
possible liquidity requirements of the Clearing House Funds and Margin Funds. The Group sets
minimum levels of highly liquid assets for Corporate Funds, Clearing House Funds and Margin
Funds. In particular, Corporate Funds solely used for supporting the Skin-in-the Game and default
fund credits of Clearing House Funds are invested in overnight deposits or Exchange Fund Bills
issued by the Hong Kong Monetary Authority and monitored on a daily basis.
As recognised clearing houses, the Group’s clearing houses have to observe the liquidity
requirements laid down in Principles for Financial Market Infrastructures (PFMI requirements)
issued by the Committee on Payments and Market Infrastructures (CPMI) and the International
Organization of Securities Commissions (IOSCO). In particular, HKSCC, HKCC and SEOCH
conduct daily liquidity stress testing that covers a number of potential stress scenarios, and
sufficient liquidity has to be set aside to cover such stress testing.
Banking facilities have been put in place for contingency purposes. At 31 December 2021, the
Group’s total available banking facilities for its daily operations amounted to $21,249 million (31
December 2020: $21,223 million), which included $14,748 million (31 December 2020: $14,722
million) of committed banking facilities and $6,500 million (31 December 2020: $6,500 million) of
repurchase facilities.
The Group also put in place foreign exchange facilities for its daily clearing operations and for the
RMB Equity Trading Support Facility to support the trading of RMB stocks listed on the Stock
Exchange. At 31 December 2021, the total amount of such facilities was $31,041 million (31
December 2020: $30,244 million).
In addition, the Group has arranged contingency banking facilities amounting to RMB13,000 million
(HK$15,938 million) (31 December 2020: RMB13,000 million (HK$15,516 million)) for settling
payment obligations to ChinaClear should there be events that disrupt normal settlement
arrangements for Stock Connect.

(b) Liquidity risk (continued)
Exposure
The Group is not exposed to liquidity risk on the outstanding base, ferrous and precious metals
futures and options contracts cleared through LME Clear. Accordingly, they are not included in the
analyses for financial assets and financial liabilities in the tables below.
The tables below analyse the Group’s financial assets into the relevant maturity buckets based on
the following criteria:
 investments held under the collective investment schemes are allocated taking into account the
redemption notice periods, lock-up periods and redemption restrictions;
 the expected amounts, subject to costs to liquidate that are expected to be immaterial, that
could be realised from the investments (other than collective investment schemes), bank
deposits and cash and cash equivalents within one month to meet cash outflows on financial
liabilities if required are allocated to the up to 1-month bucket;
 investments in minority stakes in unlisted companies are allocated to the >5 years bucket; and
 other financial assets are allocated based on their contractual maturity dates or the expected
dates of disposal.
At 31 Dec 2021
>1 month >3 months >1 year
Up to to to to
1 month 3 months 1 year 5 years >5 years Total
$m $m $m $m $m $m
Cash and cash equivalents 181,361 - - - - 181,361
Financial assets measured at fair
value through profit or loss 4,772 2,287 1,432 252 694 9,437
value through other
comprehensive income 9,755 - - - - 9,755
Financial assets measured at
amortised cost 51,731 - - 89 8 51,828
Accounts receivable and deposits1 32,502 7 - - - 32,509
280,121 2,294 1,432 341 702 284,890
At 31 Dec 2020
Up to to to to
$m $m $m $m $m $m
Cash and cash equivalents 157,996 - - - - 157,996
value through profit or loss 4,264 1,818 1,115 296 220 7,713
value through other
comprehensive income 7,942 - - - - 7,942
amortised cost 62,589 - - 91 8 62,688
Accounts receivable and deposits1 46,858 24 2 - - 46,884
279,649 1,842 1,117 387 228 283,223
1 Amounts exclude prepayments of $229 million (31 December 2020: $196 million).

(b) Liquidity risk (continued)
Exposure (continued)
The table below analyses the Group’s financial liabilities at 31 December into relevant maturity
buckets based on their contractual maturity dates. The amounts disclosed in the tables are the
contractual undiscounted cash flows.
At 31 Dec 2021
Up to to to to
$m $m $m $m $m $m
Margin deposits, Mainland security and
settlement deposits, and cash collateral from
Clearing Participants 203,536 - - - - 203,536
Accounts payable, accruals and other liabilities 28,193 18 124 - - 28,335
Other financial liabilities:
Other financial liabilities of Margin Funds 468 - - - - 468
Other financial liabilities of Clearing House
Funds 24 - 1 - - 25
Other financial liabilities of Corporate Funds:
Financial guarantee contract (maximum
amount guaranteed) (note 49(b)) 128 - - - - 128
Participants’ contributions to Clearing House
Funds 18,645 485 52 - - 19,182
Borrowings:
Written put options to non-controlling interests - - 340 93 - 433
Lease liabilities 36 58 281 1,143 842 2,360
Total 251,030 561 798 1,236 842 254,467
At 31 Dec 2020
Up to to to to
$m $m $m $m $m $m
Margin deposits, Mainland security and
settlement deposits, and cash collateral from
Clearing Participants 187,008 - - - - 187,008
Accounts payable, accruals and other liabilities 42,834 13 127 - - 42,974
Other financial liabilities:
Other financial liabilities of Clearing House
Funds 28 - - - - 28
Other financial liabilities of Corporate Funds:
Financial guarantee contract (maximum
amount guaranteed) (note 49(b)) 127 - - - - 127
Participants’ contributions to Clearing House
Funds 19,916 471 52 - - 20,439
Borrowings:
Written put options to non-controlling interests - - 340 93 - 433
Lease liabilities 38 60 288 1,248 1,101 2,735
Total 249,951 544 807 1,341 1,101 253,744

(c) Credit risk
Nature of risk
The Group is exposed to credit risk, which is the risk that a counterparty will be unable to pay
amounts in full when due. It arises primarily from the Group’s investments and accounts receivable.
Impairment provisions are made against the Group’s investments and accounts receivable based
on the accounting policy set out in notes 23 and 24.
The Group is also exposed to clearing and settlement risk, as the clearing houses of the Group act
as the counterparties to eligible trades concluded on the Stock Exchange, the Futures Exchange,
the over-the-counter market, and the LME through the novation of the obligations of the buyers and
sellers. HKSCC is also responsible for the good title to the securities deposited and accepted in the
CCASS depository. As a result, the Group has considerable market risk and credit risk since the
Participants’ ability to honour their obligations in respect of their trades and securities deposited
may be adversely impacted by economic conditions. If the Participants default on their obligations
on settlement or there are defects in the title of securities deposited and accepted in the CCASS
depository, the Group could be exposed to potential risks not otherwise accounted for in these
consolidated financial statements.
Risk management - Investment and accounts receivable risk

The Group limits its exposure to credit risk by rigorously selecting the counterparties (i.e., deposit-
takers, bond issuers, debtors and fund managers) and by diversification. All investments (excluding
those held by the collective investment schemes) were governed by the Group Credit Limit for
Settlement and Investments framework. Under the framework, specific limits are set on an
investment portfolio level and on single counterparty level. The investment portfolio is subject to a
maximum portfolio expected loss limit, each investment counterparty is subject to a minimum
investment grade rating, and each investment is also subject to maximum concentration limit per
counterparty. Fund managers of collective investment schemes are financially strong and stable,
and their selections are approved by the Investment Committee as delegated by the Board.
At 31 December 2021, the investments in debt securities held by the Group (excluding those held
by the collective investment schemes) were of investment grade and had a weighted average credit
rating of Aa2 (Moody) (31 December 2020: Aa2 (Moody)). Deposits are placed only with the
investment grade banks, licensed banks and restricted licence banks regulated by the Hong Kong
Monetary Authority, and banks regulated by local banking regulators in the countries where the
Group’s subsidiaries operate. LME entities invest a significant portion of cash in reverse repurchase
investments, where high quality assets are held against such investments as collateral.
The Group mitigates its exposure to risks relating to accounts receivable from its Participants by
requiring the Participants to meet the Group’s established financial requirements and criteria for
admission as Participants.

(c) Credit risk (continued)
Risk management - Clearing and settlement risk

The Group mitigates its exposure to clearing and settlement-related risks by requiring the
Participants to meet the Group’s established financial requirements and criteria for admission as
Participants, monitoring compliance with risk management measures such as imposing position
limits and requiring Clearing Participants to deposit margins, Mainland security and settlement
deposits, and cash collateral and contribute to the Clearing House Funds set up by the Group’s five
clearing houses. HKSCC also retains recourse against those Participants whose securities are
deposited and accepted in the CCASS depository.
Under the Margin Fund and Guarantee Fund arrangements, each HKSCC Clearing Participant is
granted by HKSCC a Margin Credit of $5 million and a Dynamic Contribution Credit of $1 million,
and each HKCC Clearing Participant is granted a Dynamic Contribution Credit of HKCC Reserve
Fund of $1 million. If a HKSCC or HKCC Clearing Participant defaults and any loss arises, HKSCC
will absorb the default loss up to the Margin Credit and Dynamic Contribution Credit utilised by the
defaulting HKSCC Clearing Participant, after deducting its collateral and Guarantee Fund
contribution maintained with HKSCC, and HKCC will absorb the default loss up to the Dynamic
Contribution Credit utilised by the defaulting HKCC Clearing Participant, after deducting its
collateral and Reserve Fund contribution maintained with HKCC. After the initial losses, HKSCC is
required to absorb further losses after the HKSCC Guarantee Fund reserve and the Guarantee
Fund contribution (excluding the Dynamic Contribution portion) of non-defaulting HKSCC Clearing
Participants are depleted, and HKCC is required to absorb further losses after the HKCC Reserve
Fund reserve and the Reserve Fund contribution (excluding the Dynamic Contribution portion) of
non-defaulting HKCC Clearing Participants are depleted. The amount of losses borne by HKSCC
and HKCC will be calculated on a pro rata basis with reference to the non-defaulting HKSCC and
HKCC Clearing Participants’ Dynamic Contributions and Dynamic Contribution Credits granted by
HKSCC and HKCC respectively.
At 31 December 2021, HKSCC had 642 Clearing Participants (31 December 2020: 643) and the
total amounts of Margin Credit and Dynamic Contribution Credit utilised by HKSCC Clearing
Participants amounted to $903 million (31 December 2020: $1,212 million), while HKCC had 166
Clearing Participants (31 December 2020: 166) and the total amount of Dynamic Contribution
Credit utilised by HKCC Clearing Participants amounted to $65 million (31 December 2020: $58
million).
The HKSCC Margin Credit and Dynamic Contribution Credit and the HKCC Dynamic Contribution
Credit are supported by the $4,000 million of shareholders’ funds set aside by the HKEX Group for
risk management purpose, of which $1,060 million and $830 million were injected into HKSCC and
HKCC respectively.

(c) Credit risk (continued)
Exposure
At 31 December, the maximum exposure to credit risk of the financial assets of the Group was
equal to their carrying amounts. The maximum exposure to credit risk of the financial guarantee
contract issued by the Group was as follows:
At 31 Dec 2021 At 31 Dec 2020

Carrying Carrying
amount in amount in
consolidated consolidated
statement of Maximum statement of Maximum
financial exposure financial exposure
position to credit risk position to credit risk
$m $m $m $m
Financial guarantee contract
Undertaking to indemnify the
Collector of Stamp Revenue
(note 49(b)) (20) 128 (20) 127
Collateral held for mitigating credit risk

Certain securities, cash deposits and non-cash collateral are being held by the Group to mitigate
the Group’s exposure to credit risk. The financial effect of the collateral, which is capped by the
amount receivable from each counterparty, was as follows:
At 31 Dec 2021 At 31 Dec 2020

Carrying Carrying
amount in amount in
consolidated Collateral consolidated Collateral
statement of held for statement of held for
financial mitigating financial mitigating
position credit risk position credit risk
$m $m $m $m
Accounts receivable and
deposits1 32,509 13,037 46,884 11,953
Fair value of base, ferrous and
precious metals futures and
options contracts cleared
through LME Clear 91,424 91,424 92,884 92,884
Reverse repurchase investments 101,041 101,041 84,981 84,981
1 Amounts exclude prepayments of $229 million (31 December 2020: $196 million).

(d) Fair values of financial assets and financial liabilities
(i) Financial assets and financial liabilities carried at fair value
At 31 December 2021 and 31 December 2020, no non-financial assets or liabilities were carried
at fair values.
The following tables present the carrying value of financial assets and financial liabilities
measured at fair value according to the levels of the fair value hierarchy defined in HKFRS 13:
Fair Value Measurement, with the fair value of each financial asset and financial liability
categorised based on the lowest level of input that is significant to that fair value measurement.
The levels are defined as follows:
 Level 1: fair values measured using quoted prices (unadjusted) in active markets for identical
assets or liabilities.
 Level 2: fair values measured using valuation techniques in which all significant inputs other
than quoted prices included within Level 1 are directly or indirectly based on observable
market data.
 Level 3: fair values measured using valuation techniques in which any significant input is not
based on observable market data.

(d) Fair values of financial assets and financial liabilities (continued)
(i) Financial assets and financial liabilities carried at fair value (continued)
At 31 Dec 2021 At 31 Dec 2020

Recurring fair value Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
measurements: $m $m $m $m $m $m $m $m
Financial assets
value through profit or loss:
- collective investment schemes 1,680 7,063 - 8,743 1,131 6,362 - 7,493
- equity securities - - 694 694 - - 220 220
- base, ferrous, and precious
metals futures and options
contracts cleared through
LME Clear - 91,424 - 91,424 - 92,884 - 92,884
value through other
comprehensive income:
- debt securities 7,750 2,005 - 9,755 5,439 2,503 - 7,942
9,430 100,492 694 110,616 6,570 101,749 220 108,539

3
Financial liabilities
Financial liabilities at fair value
through profit or loss:
- base, ferrous, and precious
LME Clear - 91,424 - 91,424 - 92,884 - 92,884
During 2021 and 2020, there were no transfers of instruments between Level 1 and Level 2 or
transfer into or out of Level 3.
Level 2 fair values of collective investment schemes, debt securities, base, ferrous and precious
metals futures and options contracts have been determined based on quotes from market
makers, funds administrators or alternative pricing sources supported by observable inputs. The
most significant input are market interest rates, market prices of metals, net asset values and
latest redemption prices or transaction prices of the respective collective investment schemes.
The Group’s policy is to recognise transfers into and out of fair value hierarchy levels as of the
date of the event or change in circumstances that caused the transfer.

Fair value measurements using significant unobservable inputs (Level 3)

2021 2020
$m $m
At 1 Jan 220 50
Investment in minority stakes in unlisted companies 349 160
Gains recognised in profit or loss 121 -
Gains recognised in other comprehensive income 4 10
At 31 Dec 694 220
Total gains or losses recognised in the consolidated income statement for

assets held at 31 Dec 121 -
Level 3 valuations are prepared on bi-annually basis, at each interim and annual reporting date.
The assumptions and inputs to the valuation model, the valuation techniques and the valuation
results are reviewed and approved by management.
The following table summarises the basis of valuation used in level 3 fair value measurements:
Fair value
At At
31 Dec 2021 31 Dec 2020 Valuation Unobservable
Description $m $m technique inputs Range
Minority stake in 200 100 Market approach1 N/A N/A
Fusion Bank
Limited
Minority stake in 236 120 Market approach1 N/A N/A
Huakong TsingJiao
Information Science
(Beijing) Limited
Minority stake in 258 - Market approach1 N/A N/A
Guangzhou Futures
Exchange
Total 694 220
1 Based on recent transactions
Fusion Bank Limited has a virtual banking license granted by the Hong Kong Monetary Authority.
The investment is not traded in an active market. The company launched its virtual banking
platform in 2020, offering a variety of banking services including savings, time deposits, local
fund transfers and foreign exchange. At 31 December 2021, the latest fair value was based on
recent market transactions.

Huakong TsingJiao Information Science (Beijing) Limited is a data technology company, which
specialises in the research and development of multi-party computation technologies, allowing
collaborative data analysis without revealing private data during the computation and analysis
process. The investment is not traded in an active market. At 31 December 2021, the latest
fair value was based on recent market transactions.
Guangzhou Futures Exchange was officially launched in April 2021, and it seeks to become an
innovative and market-oriented exchange with international influence, focusing on serving the
real economy and green development initiatives. At 31 December 2021, the latest fair value
was based on recent market transactions.
(ii) Fair values of financial assets and financial liabilities not reported at fair values
Summarised in the following table are the carrying amounts and fair values of long-term financial
assets and financial liabilities not presented in the consolidated statement of financial position at
their fair values, except for lease liabilities where disclosure of fair values is not required. These
assets and liabilities were classified under Level 2 in the fair value hierarchy.
At 31 Dec 2021 At 31 Dec 2020
Carrying Carrying
amount in amount in
consolidated consolidated
statement of statement of
financial financial
position Fair value position Fair value
$m $m $m $m
Assets
Financial assets measured at amortised cost:
- debt securities maturing over one year1 429 429 - -
- other financial assets maturing over one year2 97 87 99 94
Liabilities
Borrowings:
- written put options to non-controlling interests3 426 430 423 430
Financial guarantee to the Collector of Stamp
Revenue4 20 56 20 76
1 The fair values are provided by a reputable independent financial institution.
2 The fair values are based on cash flows discounted using Hong Kong Government bond rates of a tenor
similar to the contractual maturity of the respective assets, adjusted by an estimated credit spread. The
discount rates used ranged from 0.41 per cent to 1.45 per cent at 31 December 2021 (31 December 2020:
0.12 per cent to 0.60 per cent).
3 The fair values are based on cash flows discounted using the prevailing market interest rates for loans with
similar credit rating and similar tenor of the respective loans. The discount rate used was 1.70 per cent at
31 December 2021 (31 December 2020: 1.19 per cent).
4 The fair values are based on the fees charged by financial institutions for granting such guarantees
discounted to perpetuity using a ten-year Hong Kong Government bond rate, adjusted by an estimated
credit spread, but capped at the maximum exposure of the financial guarantee. The discount rate used
was 2.84 per cent at 31 December 2021 (31 December 2020: 2.10 per cent).
The carrying amounts of short-term financial assets and receivables (eg, accounts receivable,
financial assets measured at amortised cost and cash and cash equivalents) and short-term
payables (eg, accounts payable and other liabilities) approximated their fair values, and
accordingly no disclosure of the fair values of these items is presented.

(e) Offsetting financial assets and financial liabilities
Accounting Policy
Financial assets and liabilities are offset and the net amount reported in the consolidated statement
of financial position when there is a legally enforceable right to offset the recognised amounts and
there is an intention to settle on a net basis or realise the asset and settle the liability
simultaneously. The legally enforceable right must not be contingent on future events and must be
enforceable in the normal course of business and in the event of default, insolvency or bankruptcy
of the company or the counterparty.
For base, ferrous and precious metals futures and options contracts cleared through LME Clear,
the asset and liability positions of LME Clear arising through its activities as a central counterparty
are matched. Therefore, the same amounts are recorded for both assets and liabilities with the fair
value gains and losses recognised, but offset, in the consolidated income statement.
The disclosures set out in the tables below include financial assets and financial liabilities that:
 are offset in the Group’s consolidated statement of financial position; or

 are subject to an enforceable master netting arrangement or similar agreement that covers
similar financial instruments, irrespective of whether they are offset in the consolidated
statement of financial position.

(e) Offsetting financial assets and financial liabilities (continued)
(i) Financial assets and financial liabilities subject to offsetting, enforceable master netting
arrangements or similar agreements
At 31 Dec 2021
Related amounts not
offset
Net in the consolidated
Gross amounts statement of financial
amounts presented position
set off in the in the Amounts
consolidated consolidated subject to
statement of statement of master
Gross financial financial netting Cash Net
Type of financial amounts position position3 arrangements collateral amounts
instruments $m $m $m $m $m $m
Financial assets:
CNS money obligations
receivable1 330,705 (312,784) 17,921 (3,101) (10,472) 4,348
Base, ferrous and precious
LME Clear2 1,512,980 (1,421,556) 91,424 (39,489) (51,935) -
Other accounts receivable
from Participants,
ChinaClear, information
vendors and hosting
services customers, net of
provision for impairment
losses 13,311 - 13,311 (5,607) (113) 7,591
Total 1,856,996 (1,734,340) 122,656 (48,197) (62,520) 11,939

Financial liabilities:
payable1 338,077 (312,784) 25,293 (8,708) - 16,585
LME Clear2 1,512,980 (1,421,556) 91,424 (39,489) - 51,935
Total 1,851,057 (1,734,340) 116,717 (48,197) - 68,520

(i) Financial assets and financial liabilities subject to offsetting, enforceable master netting
arrangements or similar agreements (continued)
At 31 Dec 2020
Related amounts not
offset
Net in the consolidated
Gross amounts statement of financial
amounts presented position
set off in the in the Amounts
consolidated consolidated subject to
statement of statement of master
Gross financial financial netting Cash Net
Type of financial amounts position position3 arrangements collateral amounts
instruments $m $m $m $m $m $m
Financial assets:
receivable1 489,300 (456,390) 32,910 (10,134) (8,009) 14,767
LME Clear2 1,556,627 (1,463,743) 92,884 (38,673) (54,211) -
Other accounts receivable
from Participants,
ChinaClear, information
vendors and hosting
services customers, net of
provision for impairment
losses 878 - 878 - (140) 738
Total 2,046,805 (1,920,133) 126,672 (48,807) (62,360) 15,505

Financial liabilities:
payable1 495,510 (456,390) 39,120 (10,134) - 28,986
LME Clear2 1,556,627 (1,463,743) 92,884 (38,673) - 54,211
Total 2,052,137 (1,920,133) 132,004 (48,807) - 83,197
1 HKSCC currently has a legally enforceable right to set off certain CNS money obligations receivable and
payable relating to the same Clearing Participant and it intends to settle on a net basis.
2 LME Clear has a legally enforceable right to set off open positions of certain contracts within an individual
member’s account for those contracts settling on the same date and it intends to settle on a net basis.
3 For the net amounts of CNS money obligations receivable or payable and net fair value of base, ferrous
and precious metals futures and options contracts (i.e., after set-off) and other accounts receivable due
from customers, they do not meet the criteria for offsetting in the consolidated statement of financial
position since the right of set-off of the recognised amounts is only enforceable following an event of
default of the customers. In addition, the Group does not intend to settle the balances on a net basis.

(ii) The tables below reconcile the “net amounts of financial assets and financial liabilities
presented in the consolidated statement of financial position”, as set out above, to the
“accounts receivable, prepayments and deposits”, “accounts payable, accruals and other
liabilities”, “financial assets measured at fair value through profit or loss” and “financial liabilities
at fair value through profit or loss” presented in the consolidated statement of financial position.

Accounts receivable, fair value
prepayments and deposits through profit or loss
At At At At
31 Dec 2021 31 Dec 2020 31 Dec 2021 31 Dec 2020
$m $m $m $m
Net amount of financial assets after
offsetting as stated above:
- CNS money obligations receivable 17,921 32,910 - -
- Other accounts receivable from
Participants, ChinaClear,
information vendors and hosting
services customers, net of provision
for impairment losses 13,311 878 - -
- Base, ferrous and precious metals
futures and options contracts
cleared through LME Clear - - 91,424 92,884
Financial assets not in scope of offsetting
disclosures 1,277 13,096 9,437 7,713
Prepayments 229 196 - -
Amounts presented in the consolidated
statement of financial position 32,738 47,080 100,861 100,597
Accounts payable, accruals and Financial liabilities at fair value

other liabilities through profit or loss
At At At At
31 Dec 2021 31 Dec 2020 31 Dec 2021 31 Dec 2020
$m $m $m $m
Net amount of financial liabilities after
offsetting as stated above:
- CNS money obligations payable 25,293 39,120 - -
- Base, ferrous and precious metals
futures and options contracts
cleared through LME Clear - - 91,424 92,884
Financial liabilities not in scope of
offsetting disclosures 3,042 3,854 - -
Amounts presented in the consolidated
statement of financial position 28,335 42,974 91,424 92,884

54. Statement of Financial Position and Reserve Movements of HKEX
Accounting Policy
In HKEX’s statement of financial position, investments in subsidiaries are stated at cost less
impairment losses, if necessary. The results of subsidiaries are accounted for by HKEX on the basis
of dividends received and receivable.
Investment in a subsidiary is tested for impairment upon receiving a dividend from that subsidiary if
the dividend exceeds the total comprehensive income of the subsidiary concerned in the period the
dividend is declared or if the carrying amount of the subsidiary in HKEX’s statement of financial
position exceeds the carrying amount of the subsidiary’s net assets.
The financial statements of the controlled special purpose entity, The HKEx Employees’ Share Award
Scheme, are included in HKEX’s financial statements.
Written put options to non-controlling interests initially recognised at fair value are accounted for as
an investment in subsidiaries with a corresponding credit to financial liabilities at fair value through
profit or loss. Subsequent changes in fair value of the financial liabilities are recognised in HKEX’s
income statement. Written put options to non-controlling interests are included under financial
liabilities at fair value through profit or loss on the statement of financial position.

54. Statement of Financial Position and Reserve Movements of HKEX (continued)
Statement of Financial Position of HKEX
At 31 Dec 2021 At 31 Dec 2020

Current Non-current Total Current Non-current Total
$m $m $m $m $m $m
ASSETS
Cash and cash equivalents 3,808 - 3,808 4,057 - 4,057
fair value through profit or loss 8,491 510 9,001 7,197 296 7,493
amortised cost 5,264 197 5,461 7,263 74 7,337
Accounts receivable,
prepayments and deposits 315 21 336 96 21 117
Amounts due from subsidiaries 808 11,594 12,402 1,008 11,581 12,589
Interests in joint ventures - 114 114 - 114 114
Intangible assets - 464 464 - 457 457
Fixed assets - 404 404 - 434 434
Right-of-use assets - 1,656 1,656 - 1,867 1,867
Investments in subsidiaries - 15,694 15,694 - 15,451 15,451
Total assets 18,686 30,654 49,340 19,621 30,295 49,916
LIABILITIES AND EQUITY
Liabilities
Financial liabilities at fair value
through profit or loss 333 - 333 347 - 347
Accounts payable, accruals and
other liabilities 673 - 673 994 - 994
Amounts due to subsidiaries 159 - 159 345 - 345
Taxation payable 325 - 325 299 - 299
Other financial liabilities 11 - 11 11 - 11
Lease liabilities 209 1,543 1,752 211 1,745 1,956
Provisions 73 63 136 103 63 166
Deferred tax liabilities - 95 95 - 90 90
Total liabilities 1,783 1,701 3,484 2,310 1,898 4,208
Equity
Share capital 31,896 31,891
Shares held for Share Award
Scheme (901) (485)
compensation reserve 306 232
Merger reserve 694 694
Retained earnings 13,861 13,376
Equity attributable to
shareholders of HKEX 45,856 45,708
Total liabilities and equity 49,340 49,916
Net current assets 16,903 17,311
Approved by the Board of Directors on 24 February 2022

111
Laura M CHA Alejandro Nicolas AGUZIN

Director Director

54. Statement of Financial Position and Reserve Movements of HKEX (continued)
(a) Reserve movements of HKEX
Employee
share-based
compensation Merger Retained
reserve reserve earnings
$m $m $m
At 1 Jan 2020 250 694 12,060
Profit attributable to shareholders - - 9,779
2019 second interim dividend at $2.99 per share - - (3,761)
2020 first interim dividend at $3.71 per share - - (4,692)
Unclaimed HKEX dividends forfeited - - 21
Vesting of shares of Share Award Scheme (299) - (31)
Employee share-based compensation benefits 281 - -
At 31 Dec 2020 232 694 13,376
At 1 Jan 2021 232 694 13,376
Profit attributable to shareholders - - 12,073
2020 second interim dividend at $4.46 per share - - (5,646)
2021 first interim dividend at $4.69 per share - - (5,934)
Unclaimed HKEX dividends forfeited - - 12
Vesting of shares of Share Award Scheme (250) - (20)
Employee share-based compensation benefits 324 - -
At 31 Dec 2021 306 694 13,861

00388FS2021

Uploaded by

Copyright:

Available Formats

00388FS2021

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

00388FS2021

Uploaded by

Copyright:

Available Formats

Pursuant to Chapter 38 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong

（Incorporated in Hong Kong with limited liability）

Consolidated Financial Statements

For the year ended 31 December 2021

As at 24 February 2022, the board of directors of HKEX comprises 12 Independent Non-

1 FOR THE YEAR ENDED 31 DECEMBER 2021

2 FOR THE YEAR ENDED 31 DECEMBER 2021

3 FOR THE YEAR ENDED 31 DECEMBER 2021

Laura M CHA Alejandro Nicolas AGUZIN

4 FOR THE YEAR ENDED 31 DECEMBER 2021

5 FOR THE YEAR ENDED 31 DECEMBER 2021

6 FOR THE YEAR ENDED 31 DECEMBER 2021

7 FOR THE YEAR ENDED 31 DECEMBER 2021

2. Principal Accounting Policies

(a) Statement of compliance

(b) Basis of preparation

Adoption of new/revised HKFRSs

Amendments to HKFRS 16 Leases: COVID-19-Related Rent Concessions1

8 FOR THE YEAR ENDED 31 DECEMBER 2021

2. Principal Accounting Policies (continued)

(b) Basis of preparation (continued)

Amendments to Illustrative Leases: Lease Incentives2

1 Effective for accounting periods beginning on or after 1 April 2021

(c) Basis of consolidation

9 FOR THE YEAR ENDED 31 DECEMBER 2021

2. Principal Accounting Policies (continued)

(d) Impairment of non-financial assets

(e) Foreign currency translation

(i) Functional and presentation currency

(ii) Transactions and balances

(iii) Group companies

10 FOR THE YEAR ENDED 31 DECEMBER 2021

3. Critical Accounting Estimates and Assumptions

(a) Goodwill and tradenames

(b) Valuation of investments

(c) Income taxes

11 FOR THE YEAR ENDED 31 DECEMBER 2021

The operations in each of the Group’s reportable segments are as follows:

12 FOR THE YEAR ENDED 31 DECEMBER 2021

4. Operating Segments (continued)

Timing of revenue recognition:

13 FOR THE YEAR ENDED 31 DECEMBER 2021

4. Operating Segments (continued)

Timing of revenue recognition:

(a) Geographical information

Revenue Non-current assets

(b) Information about major customers

14 FOR THE YEAR ENDED 31 DECEMBER 2021

(a) Trading Fees and Trading Tariffs

15 FOR THE YEAR ENDED 31 DECEMBER 2021

(b) Stock Exchange Listing Fees

Equity CBBCs, Equity CBBCs,

(c) Other Revenue

16 FOR THE YEAR ENDED 31 DECEMBER 2021

6. Net Investment Income

7. HKEX Foundation Donation Income

17 FOR THE YEAR ENDED 31 DECEMBER 2021

10. Staff Costs and Related Expenses

(a) Retirement Benefit Costs