Octopus Holdings Limited
Encyclopedia
Octopus Holdings Limited is a holding company based in Hong Kong
jointly owned by five major transport companies in the city. Its subsidiaries, which are all wholly owned, operate the various functions of the Octopus card
in both its commercial and non-commercial usage. In 2006, the company gained international recognition by winning the Chairman's Award of the World Information Technology and Services Alliance
's 2006 Global IT Excellence Award for the Octopus card system.
. The non-commercial businesses of the company, such as the consumer rewards program, consumer market research, and investment holdings, on the other hand, are not subjected to such regulations. The company restructure placed Octopus Cards Limited as a subsidiary of Octopus Holdings Limited, while the non-payment businesses of the company were placed under other subsidiaries, such that its payment businesses are independent of its non-payment businesses. Additionally, Octopus Holdings Limited has also expanded the use of the Octopus card system internationally, operating its businesses outside Hong Kong under a subsidiary.
, 22.1% by the Kowloon-Canton Railway Corporation
, 12.4% by Kowloon Motor Bus
, 5% by Citybus
, and 3.1% by New World First Bus
. Since the Government of Hong Kong
owns 76.8% of the MTR Corporation (as of 31 December 2009) and wholly owns the Kowloon-Canton Railway Corporation, it is the biggest effective shareholder of Octopus Holdings Limited.
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
jointly owned by five major transport companies in the city. Its subsidiaries, which are all wholly owned, operate the various functions of the Octopus card
Octopus card
The Octopus card is a rechargeable contactless stored value smart card used to transfer electronic payments in online or offline systems in Hong Kong...
in both its commercial and non-commercial usage. In 2006, the company gained international recognition by winning the Chairman's Award of the World Information Technology and Services Alliance
World Information Technology and Services Alliance
The World Information Technology and Services Alliance is a consortium of associations from the information technology industry around the world. The group claims that it represents over 90% of the world IT market, and has a stated goal of advancing the growth and development of the IT industry...
's 2006 Global IT Excellence Award for the Octopus card system.
Company restructure
Prompted by the business expansion of the Octopus card, Octopus Holdings Limited was formed in 2005 after a company restructure of Octopus card operator Octopus Cards Limited. The Octopus card is used by card holders as an electronic payment system, and as such, the Octopus card system is considered a commercial business and is regulated by the Hong Kong Monetary AuthorityHong Kong Monetary Authority
The Hong Kong Monetary Authority or HKMA is Hong Kong's central banking institution . It is a government authority founded on 1 April 1993 via the consolidation of "Office of the Exchange Fund" and the "Office of the Commissioner of Banking"...
. The non-commercial businesses of the company, such as the consumer rewards program, consumer market research, and investment holdings, on the other hand, are not subjected to such regulations. The company restructure placed Octopus Cards Limited as a subsidiary of Octopus Holdings Limited, while the non-payment businesses of the company were placed under other subsidiaries, such that its payment businesses are independent of its non-payment businesses. Additionally, Octopus Holdings Limited has also expanded the use of the Octopus card system internationally, operating its businesses outside Hong Kong under a subsidiary.
Subsidiaries
There are five wholly owned subsidiaries of Octopus Holdings Limited.- Octopus Cards Limited operates the Octopus card in Hong Kong as an electronic payment system.
- Octopus Rewards Limited operates and develops Octopus Rewards, a consumer rewards programme for Octopus card customers.
- Octopus International Projects Limited provides international consultancy services for automatic fare collection systems.
- Octopus Investments Limited is an investment holding company.
- Octopus China Investments Limited is an investment holding company for China-related projects.
Shareholding
As of 2007, Octopus Holdings Limited is a joint-venture business owned by five transport companies in Hong Kong; 54.4% by the MTR CorporationMTR Corporation
MTR Corporation Limited is a company listed on the Hong Kong Exchange and included in the Hang Seng Index. MTR owns and runs the Hong Kong MTR metro system, and is also a major property developer and landlord in Hong Kong...
, 22.1% by the Kowloon-Canton Railway Corporation
Kowloon-Canton Railway Corporation
The Kowloon–Canton Railway Corporation was established in 1982 under the Kowloon–Canton Railway Corporation Ordinance for the purposes of operating the Kowloon–Canton Railway , and to construct and operate other new railways...
, 12.4% by Kowloon Motor Bus
Kowloon Motor Bus
The Kowloon Motor Bus Company Limited , a company of the Transport International Holdings Limited, is the largest franchised bus operators in Hong Kong, and one of the largest privately owned public bus operators in the world...
, 5% by Citybus
Citybus (Hong Kong)
Citybus Limited is one of the three major bus operators in Hong Kong. It provides both franchised and non-franchised bus service. The franchised route network serves mainly Hong Kong Island, cross-harbour routes , Ocean Park, North Lantau and Hong Kong International Airport...
, and 3.1% by New World First Bus
New World First Bus
New World First Bus Services Limited , abbreviated as First Bus and "NWFB", is the third largest public bus operator in Hong Kong.NWFB was established in 1998, taking over China Motor Bus's franchise on 1 September 1998 to provide bus services on Hong Kong Island together with Citybus...
. Since the Government of Hong Kong
Government of Hong Kong
The Government of the Hong Kong Special Administrative Region of the People's Republic of China, commonly the Hong Kong Government, is led by the Chief Executive as Head of the Government, who is also the head of the Hong Kong SAR...
owns 76.8% of the MTR Corporation (as of 31 December 2009) and wholly owns the Kowloon-Canton Railway Corporation, it is the biggest effective shareholder of Octopus Holdings Limited.