HKEX sees mainland stock strategy start to pay off

HONG KONG • Hong Kong Exchanges & Clearing Ltd’s (HKEX) plan to be the gateway to the world’s second-biggest stock market seems to be slowly but surely paying off.

A key plank of HKEX CEO Charles Li’s  (picture) strategy is a system of trading links between the bourse and exchanges in mainland China.

Results following the start of a second stock link in December with Shenzhen, suggest traders who are keen on the approach. The two stock connect programmes generated HK$277 million (RM149.58 million) in revenue and other income for the first nine months of the year, more than double the year-ago period, according to a statement yesterday. Shenzhen’s addition to the system, two years after the start of the link with Shanghai, increased to more than 1,500 the number of mainland-listed shares available to traders via Hong Kong.

Li wants to see the links expanded to eventually include newly-listed shares, exchange-traded funds, derivatives and commodities to make HKEX a “global deployment centre” for Chinese wealth, he told Bloomberg earlier this year. While the revenue from the connects is still relatively small, it could be just the start if Li has his way. — Bloomberg