HKEX | 388
HKEX aims to be the go-to venue for investors in Asia time zone
HKEX (388) unveiled the strategic plan 2019-2020, which sets out its vision and strategic objectives for the next three years. HKEX intends to focus its efforts in three areas: support international portfolio diversification by mainland investors and facilitate further internationalization of the domestic capital markets through secure, effective and transparent channels across asset classes; attract global liquidity to HK by providing broader and more effective access to Asia Pacific underlying assets, creating a comprehensive and competitive one-stop shop for China and Asian exposure.
Last but not least, HKEX will leverage technology to modernize core business and explore new frontiers through strategic partnerships with technology leaders. HKEX aims to further increase its international relevance to China and Asia, as well as its Asian relevance to the global markets, serving as the venue of choice for investor and issuers in Asian time zone.
Charles Li, chief executive of the Hong Kong Stock Exchange, pointed out that the Hong Kong market has three cores to attract global capital. One is that the market provides full lists of "goods" for the investor the choose; the other is to provide a convenient way for global funds to interact with Chinese funds; The third one is market is highly efficient and low-cost. Around these core elements, the HKEX needs to work hard to enrich its products and improve its structure.
He also pointed out that as the global and Asia-Pacific investment enthusiasm is gradually warming up, but the existing products and services in the market cannot fully meet these needs, Hong Kong should seize this opportunity, attract these international funds coming to Hong Kong by provide Asia-Pacific regions listed companies and ETF products. As for improving the market microstructure, he pointed out that in order to attract large companies from the Asia-Pacific region to come to Hong Kong for listing, the HKEX will work with relevant regulators to study the implementation of remote participants, so that brokers in the Asia-Pacific region need not be licensed agents in Hong Kong, providing Hong Kong market trading services to local investors.
As for the development of the Greater Bay Area, Charles Li said that the HKEX will further optimize the listing mechanism, encourage more new economic companies to be listed in Hong Kong, optimize and expand the Shanghai and Shenzhen-Hong Kong Stock Connect and Bond Pass; and launch more derivatives to help the internationalization of the RMB.