KGI Hong Kong Group is a 100%-owned subsidiary of KGI Securities.  In 1999, the group acquired Seapower Securities and Seapower Futures, transforming itself into a versatile financial services company with a strong local market presence.  KGI Hong Kong Group has its own subsidiaries, namely KGI Asia, KGI Alliance, KGI Financial Product and KGI Investment Pacific Limited.  KGI Hong Kong Group offers a broad range of brokerage services, covering the equity, futures, bond and derivatives markets.  It also conducts proprietary trading.  As a securities brokerage, KGI Hong Kong Group not only caters to a local client base but has also developed a global dimension.

Hong Kong's economic performance has been robust in recent years.  Real GDP growth of 7.10%, 7.00% and 6.30% in 2005, 2006 and 2007, respectively, has enhanced investment opportunities and raised investor confidence.  Spurred by positive overall sentiment in the Greater China region, Hong Kong equities surged in 2007.  Daily average turnover grew nearly 160% year-on-year while the HSI rose close to 40%. As a result, the brokerage revenues of KGI Hong Kong Group rose over 390% year-on-year, fuelled by strong share trading and IPO financing.  Many established Chinese enterprises launched IPOs in Hong Kong last year, which proved very popular with Hong Kong investors.  This trend was encouraged by a convergence of positive factors, namely China's allowing QDII investors to invest in Hong Kong equities and allowing Chinese investors to directly invest in Hong Kong.  Thanks in part to its abundant capital resources and ability to maneuver funds, which allow it to offer sizable margin loans to clients, KGI Hong Kong Group acted as financing provider for as many as 84 IPOs in 2007, comprising 82 on the main board and two in the Growth Enterprise Market (GEM).

Aside from handling numerous IPOs last year, KGI Hong Kong Group also managed the issue of various types of derivatives including warrants, options and structured notes.  Its proprietary trading business also outperformed in 2007.