Hong Kong Exchanges and Clearing Limited, or HKEX, announced the opening of its office in London last Thursday (September 7) in a bid to expand its connectedness and attract more investors to the Hong Kong bourse.
“The opening of the London office will broaden and deepen HKEX’s support for its growing customer base in Europe, attract more European funds and global companies to list in Hong Kong, so as to increase participation of international investors in the Hong Kong market,” a spokesperson from HKEX told FinanceAsia.
She said Hong Kong’s connect programmes put the city in a unique position.
“The inclusion of ETFs in stock connect, widened scope of eligible stocks included in northbound and southbound stock connect, the launch of swap connect and HKD-RMB dual trade counter, have reinforced Hong Kong’s super connector role,” she said.
“In particular, international companies with a primary listing in Hong Kong now have direct access to mainland China investors, further enhancing the appeal of a Hong Kong listing.”
Through its new office in London, HKEX hopes to consolidate its presence in the UK and Europe, connecting clients with Hong Kong’s capital market and providing on-the-ground support for customers.
"HKEX already has strong ties with the financial community in London, through its subsidiary, the London Metal Exchange, and this new office will broaden and deepen our support for our growing customer base in Europe,” Nicolas Aguzin, HKEX’s chief executive officer (CEO) noted in the press release.
The London Exchange Group (LME Holdings), a non-ferrous metal futures market, became part of HKEX Group in December 2012. HKEX has since remained the sole shareholder of the subsidiary.
International investors account for around half of Hong Kong’s cash equities total turnover, according to data from HKEX. Around 10% of total turnover comes from European investors when the bourse first announced its expansion plan in March.
Together with the bourse’s newly set up New York office earlier in June, the two global locations are set to complement HKEX’s current international reach through offices in Beijing, Shanghai and Singapore.
“International connectivity is a key tenet of HKEX’s strategy,” the spokesperson said.
“This strategic expansion will bring us closer to our clients and issuers, enabling them to tap into expanded opportunities in Hong Kong, Mainland China and across diverse Asian markets.”