The nine-member board of China Exchanges Services Company Limited (CESC), a new joint venture (JV) of Hong Kong Exchanges and Clearing Limited (HKEx), Shanghai Stock Exchange (SHSE) and Shenzhen Stock Exchange (SZSE) for the development of financial products and related services, had its inaugural meeting today in Hong Kong, approximately three months after the exchanges announced plans for the JV.

Hong Kong-based CESC’s board is comprised of three directors nominated by each of the exchanges.  Jiang Jianren, Chairman of China Investment Information Services Ltd* and Head of the SHSE Liaison Office in Hong Kong, and Mao Zhirong, Director of the SZSE Office of Hong Kong, Macau and Taiwan Affairs and Director of SZSE’s Financial Innovation Lab, were appointed the Hong Kong-based JV’s Joint Chairmen.  Other board members include Xie Liansheng, a former director and standing deputy general manager of SHSE’s SSE InfoNet Co Ltd; Bean Zhang, Managing Director of China Investment Information Services Ltd* and Deputy General Manager of SSE InfoNet Co Ltd; Tian Po, Director of SZSE’s Information Management Department; Wu Ying, Vice Director of SZSE’s Listing Funds Department; Bryan Chan, HKEx’s Head of Market Data; Calvin Tai, HKEx’s Head of Trading; and Yang Qiumei, HKEx’s Head of Mainland Development.

Bryan Chan was appointed CESC Chief Executive at the board meeting today.  Xie Liansheng was appointed CESC Deputy Chief Executive and Wu Ying was appointed CESC Deputy Chief Executive and Chief Financial Officer.

CESC’s principal business will include, but not be limited to, the development and franchising of index-linked and other equity derivatives; the compilation of cross-border indices based on products traded on the three markets; and the development of industry classification for listed companies, as well as information standards and information products.  The business will also include market promotion, customer services, technical services and infrastructure development.

CESC Co-Chairman Jiang Jianren said: “The establishment of CESC is an important result of further opening of our capital market and deepened cooperation between the capital markets of Mainland China and Hong Kong.  It will contribute to the building of the offshore RMB market in Hong Kong.  In addition, CESC’s products will satisfy the global traders’ needs and allow international investors to use Hong Kong as a key offshore channel to invest in Mainland-related products.”

CESC Co-Chairman Mao Zhirong said: “CESC opens up a new approach of cooperation between Mainland China and Hong Kong.  With our joint effort, we hope our new products will establish a considerable global influence.” 

“CESC plans to launch a new series of cross-border indices by the end of this year,” CESC Director and Chief Executive Bryan Chan said.  “We also plan to introduce related index products in the first quarter of next year and these products will be traded on HKEx’s derivatives market.”

HKEx, SHSE and SZSE each contributed $100 million of CESC’s initial paid-up capital of $300 million and they have equal stakes in the JV.

*A subsidiary of SHSE 

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