The team driving Hong Kong racing forward pictured together in the Sha Tin Parade Ring.

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The team driving Hong Kong racing forward pictured together in the Sha Tin Parade Ring. 4 (from left) Head of Veterinary Clinical Services Christopher Riggs, Head of Veterinary Regulation & International Liaison Keith Watkins, Racing Secretary Marco Cheng, Head of Racing Operations & Equestrian John Ridley, Head of Racing Laboratory Terence Wan, Chief Stipendiary Steward Jamie Stier, Executive Director of Racing Winfried Engelbrecht- Bresges and Head of Handicapping, Race Planning & International Racing Ciaran Kennelly.

Going from strength to strength How Hong Kong racing rose to current heights 5

Back in 1996 Hong Kong racing was synonymous only with the scale of betting it generated. At a time when horses were considered as little more than vehicles for gambling, there was little direct focus on the quality of the sport and even less emphasis on the need to be recognised internationally. Just four races were open to overseas runners and none of those were ranked higher than International Group Two standard. Worse still, Hong Kong horses were rarely able to figure in the quinella in any of these four races a decade ago. t hat s not to say that we didn t have good horses in the 1990s because we did River Verdon, Mr Vitality, Makarpura Star and Motivation deserve special mention but there were fewer top class horses, chasing much less prize money. In short, the sport was less attractive and it was not the world class offering that we have come to appreciate in recent years. We decided we needed to position racing in a more customer-friendly way, to make it more competitive on the leisure side of things. Having a steady flow of champion horses is a very important part of racing, but Hong Kong was falling short in that respect and we felt we had to find a way to attract better horses, says Mr Winfried Engelbrecht-Bresges, Executive Director of Racing. Around that time, Club Stewards and principally the late former Chairman, Mr Alan Li, recognised the importance of the Hong Kong International Races and advocated steering the event away from being a lucrative novelty to one of the most important fixtures on the international racing calendar. With Li at the helm, prize money for the HKIR shot from HK$20 million for a trio of International Group Two races in 1998 to HK$56m for four International Group One events in 2002. This, of course, was a double-edged sword. Not long ago, the best horses from around the world arrived at Sha Tin in their droves seeking a share of some of the richest purses in world racing. But that was the price to be paid for boosting quality. The new significant hike in prize money was intended to be more than a giveaway to foreign owners. Because given the lack of a breeding industry, the only way to increase standards was to inspire owners to recruit better horses from overseas. Li also reasoned this would be a challenge Hong Kong Owners would be willing to accept and was vindicated when local horses won three of the four HKIR events in 2002 a long, long way from the days when Group One winners from overseas were not permitted to race in Hong Kong for fear they would dominate! Throwing money at the sport was only part of the solution, policy changes were also effected by the Club s racing administrators. Improving and refining the criteria by which overseas horses could be imported to Hong Kong formed an important part in boosting the standard of the thoroughbred population. Replacement permits were introduced so Owners could retire horses no longer capable of performing to the required standard owing to injury, a loss of form or advancing years and replace them with proven international performers. This move resulted in the introduction of this year s Derby hero Viva Pataca and a previous Classic king and subsequent world champion, Vengeance Of Rain. Senior Handicapper Ciaran Kennelly also points out, for example, how Owner Kam Shingkan replaced modest 28-rated performer Pearl And Gold with the New Zealand Group One winner Russian Pearl, subsequent Group One Stewards Cup victor and placegetter in the Mercedes-Benz Hong Kong Derby and Audemars Piguet QE II Cup. That s an upgrade. The import criteria were recently fine-tuned to broaden Owners scope when selecting quality horses to race in Hong Kong. The Club s pivotal role in raising standards throughout the Asian Racing Federation cannot go unmentioned either: over the past year the Asian Mile Challenge has benefited from the Club s zeal for a leading role in the internationalisation of top-class horse racing. With races in Australia and Dubai this year joining co-founders Hong Kong and Japan, a US$12.6m mile series, the richest of its kind, is in place. In 2006, Hong Kong is also a party to the second Global Sprint Challenge, adding further emphasis to our ambition to become world leaders on the turf. It is essential that champion horses continue to emerge in Hong Kong. They provide the inspiration for Owners to seek out the stars of tomorrow and for fans to come to the track and cheer them home when that day dawns. Great strides have been made in the past decade. We trust that further progress is just around the corner. We decided we needed to position racing in a more customer-friendly way, to make it more competitive on the leisure side of things. Having a steady flow of champion horses is a very important part of racing, but Hong Kong was falling short in that respect and we felt we had to find a way to attract better horses. 6

The horses and trainers who made it happen in the past ten years 98 Oriental Express (Ivan Allan) wins the QE II Cup and runs second in the Yasuda Kinen. 02 Olympic Express (Ivan Allan) snatches the Hong Kong Mile from local favourite Electronic Unicorn. Precision (David Oughton) springs an upset win in the Hong Kong Cup. 05 Silent Witness (Tony Cruz) registers an emphatic success in the Sprinters Stakes in Japan before being declared the world s top-ranked sprinter, according to the World Thoroughbred Racehorse Rankings. 99 Indigenous (Ivan Allan) is an excellent runner-up in the Japan Cup. At the time it was the finest performance by a Hong Kong horse internationally. 03 Silent Witness (Tony Cruz) arrives on the international scene with his Hong Kong Sprint triumph. He was later named the world s leading older turf sprinter in that year s International Classifications. Lucky Owners (Tony Cruz) spearheads a local one-two in the Hong Kong Mile. Vengeance Of Rain (David Ferraris) captures the World Racing Championships after first and last leg victories in the Audemars Piguet QE II Cup and Cathay Pacific Hong Kong Cup. 99 00 00 02 Fairy King Prawn (Ricky Yiu and Ivan Allan) speeds home in the inaugural Hong Kong Sprint and becomes the first Hong Kong winner of a Group One race overseas with a comfortable success in the Yasuda Kinen. Industrialist (Brian Kan) edges a gripping three-way photo finish to the Audemars Piguet QE II Cup. All Thrills Too (David Hayes) leads a home-based quinella in the Hong Kong Sprint. 04 River Dancer (John Size) is a shock winner of the Audemars Piguet QE II Cup from local favourite Elegant Fashion. Silent Witness (Tony Cruz) is a resounding Cathay Pacific Hong Kong Sprint victor en route to setting a modern-day record of 17 straight wins. 06 Cape Of Good Hope (David Oughton) is the inaugural winner of the Global Sprint Challenge thanks to the remarkable achievement of International Group One sprint wins in Australia and Great Britain. Natural Blitz (Derek Cruz) keeps the Cathay Pacific Hong Kong Sprint at home for the fourth straight year. Bullish Luck (Tony Cruz) picks up a US$1 million Asian Mile Challenge bonus by winning the Champions Mile and the Yasuda Kinen. 7

Olympic equestrian preparations in full swing Preparations are now well in hand on all fronts for Hong Kong s staging of the equestrian events of the 2008 Beijing Olympics and Paralympics, which provide a once-in-a-lifetime chance for the city to showcase its facilities to a global audience and for the community to become involved in the world s most prestigious sporting event. The Hong Kong Jockey Club will play a leading role as it has committed to be venue provider for the three equestrian events, investing some HK$700-800 million in new or upgraded facilities that will later provide a permanent sporting and recreational legacy for the local community. Here are some of the developments now under way: The Olympic Equestrian Committee (Hong Kong) has been set up to organise the Olympic and Paralympic competitions on behalf of the Beijing Organising Committee for the Games of the XXIX Olympiad (BOCOG). Club Chairman Ronald Arculli is one of four Vice-Presidents. The Club has also set up its own project team for the venue preparations, under the direction of Head of Racing Operations & Equestrian, John Ridley. Construction work has already begun, following a groundbreaking ceremony in April 2006 at the Hong Kong Sports Institute (HKSI), adjacent to Sha Tin Racecourse. The Club is working alongside two of the world s best-known experts in equestrian course design: Timothy Court as venue designer and lead architect, and Mike Etherington-Smith as cross-country course designer. For the dressage and showjumping competitions, the Club is building a main competition arena seating 19,000 spectators at the HKSI and more than ten training and warm-up areas, as well as air-conditioned stabling for some 300 horses, accommodation for their grooms, and facilities for officials, sponsors and VIPs. For the cross-country section of the three-day event, a 5.7 km long, 10 metre wide track is being created at the Hong Kong Golf Club in Fanling and the HKJC s adjacent Beas River Country Club, making full use of the site s natural scenery. The Club will also make available its Equine Hospital and Racing Laboratory at Sha Tin for the duration of the Olympic and Paralympic Events. A programme of regular progress briefings to Government departments, District Councils, residents groups and other interested parties is under way, under the direction of Executive Director of Security and Corporate Legal Services Stephen Chandler. The Club has played host to several high-profile delegations of visitors to the venue sites, including Vice-President of the People s Republic of China Zeng Qinghong; the two astronauts aboard Shenzhou-6, China s second manned space flight, Fei Junlong and Nie Haisheng; Coordination Commission Chairman of the International Olympic Committee, Hein Verbruggen, and representatives from the International Equestrian Federation (FEI) and BOCOG. left: Executive Director of Security and Corporate Legal Services Stephen Chandler is leading community briefings. 29 Timothy Court Mike Etherington-Smith Setting up wind testing equipment at the venue sites. 8

Our world champions 2003 Silent Witness Listed as the world s joint leading older turf sprinter in the International Classifications. 2004 Silent Witness The world s joint top-ranked sprinter in the World Thoroughbred Racehorse Rankings. 2005 Silent Witness The world s top-ranked sprinter according to the World Thoroughbred Racehorse Rankings. 2005 Cape Of Good Hope Becomes the inaugural winner of the Global Sprint Challenge thanks to the achievement of International Group One sprint wins in Australia and Great Britain. 2005 Vengeance Of Rain Captures the World Racing Championships after first and last leg victories in the Audemars Piguet QE II Cup and the Cathay Pacific Hong Kong Cup. 9

Mercedes-Benz Russian Pearl International affiliations of HKJC management Dr Lawrence T Wong PhD Chief Executive Vice Chairman of the International Federation of Horseracing Authorities (IFHA) Chairman of the Asian Racing Federation (ARF) Winfried Engelbrecht-Bresges Executive Director, Racing Co-Chairman of the International Grading and Race Planning Advisory Committee of IFHA Chairman of the ARF Grading and Race Planning Committee Ciaran Kennelly Head of Handicapping, Race Planning & International Racing Co-Chairman of IFHA World Rankings Supervisory Committee Co-Chairman of World Thoroughbred Racehorse Rankings Conference Dr Keith L Watkins BVSc MRCVS Head of Veterinary Regulation & International Liaison Chairman, International Movement of Horses Committee (IMHC) Chairman, International Group of Specialist Racing Veterinarians (IGSRV) Contact & Event Veterinarian Hong Kong, International Equestrian Federation (FEI) Dr Christopher M Riggs BVSc, PhD, DEO, DipECVS, MRCVS Head of Veterinary Clinical Services Treasurer of the European Society of Veterinary Orthopaedics and Traumatology Diplomat of the European College of Veterinary Surgeons Specialist in equine orthopaedics, Royal College of Veterinary Surgeons Special Professor at the University of Nottingham, England Dr Terence Wan BSc, PhD, EurChem, CSci, CChem, FRSC, FAORC, FFSSoc Head of Racing Laboratory Convenor of the Working Group on Racehorse Testing of the International Laboratory Accreditation Cooperation (ILAC) Member of the Accreditation Committee of ILAC Member of the Advisory Council on Prohibited Substances, IFHA Member of the Medication Advisory Group, FEI Bullish Luck is an unbelievably easy winner of the Yasuda Kinen, the most important mile event in Japan roared on (above) by Hong Kong s cheering team. 10

Raising the bar How a raft of fresh racing initiatives got us where we are today Viva Pataca Making the Cathay Pacific Hong Kong International Races a unique occasion with topclass participants from throughout the world chasing four International Group One races and some of the highest prize money in the world. Offering a bonus system for locally-trained stakes earners in Hong Kong s six international races as well for the Triple Crown and Champion Sprint Series. Significantly boosting prize money for our international and top domestic races to reward Owners for purchasing better quality thoroughbreds to race in Hong Kong. Attracting more world-class jockeys to Hong Kong. Encouraging Owners to race their horses overseas. Import criteria changes with the aim of improving the quality of our horses. Positioning the Mercedes-Benz Hong Kong Derby as the ultimate domestic prize by boosting both its value and associated prestige. Mercedes-Benz Attracting world-class horse trainers to apply their craft at Sha Tin, sometimes with almost immediate results John Size instantly raised the standard by winning the championship in his first three seasons; Tony Millard won the Hong Kong Derby in his first year; David Ferraris won the Mercedes-Benz Hong Kong Derby, Audemars Piguet QE II Cup and Cathay Pacific Hong Kong Cup in his second and third terms. Mercedes-Benz John Size Average Prize Money per Race in 2004 (US$) Australia 8,647 South Africa 7,953 South Korea 28,617 Ireland 28,333 France 22,216 UK 20,022 USA 10,265 New Zealand 7,296 Japan 39,039 Nurturing homegrown riding talent. Howard Cheng and Eddy Lai consistently perform well in the face of fierce weighing room competition, while leading apprentice Alex Lai continues to offer great value for his 7lbs claim. Special Replacement Permit Policy introduced in 2001/02 season. Group One winners Bullish Bullish Luck Luck, River Dancer, Super Kid, Vengeance Of Rain, Russian Pearl, Viva Pataca, Natural Blitz and Sunny Sing have all switched to Hong Kong under this successful initiative. Recently promoted local trainers have achieved new heights the likes of Danny Shum, Casper Fownes, Dennis Yip, Manfred Man et al look set for very successful careers. Introduction of performance criteria for trainers setting a minimum wins requirement per season. Hong Kong 108,443 UAE 78,206 Howard Cheng 11