Hong Kong Exchanges and Clearing Limited (HKEx) Chief Executive Charles Li discussed the positioning of Hong Kong's financial markets and HKEx's role at the company's annual media lunch today (Tuesday).

His comments focused on how HKEx sees the Mainland and Hong Kong markets evolving, and what HKEx is doing to prepare for future opportunities.

HKEx is considering the broad issues facing Hong Kong's financial markets today, following two decades of developments which have seen Hong Kong become the primary offshore equity capital formation and trading centre for China.  Leveraging on the close cooperation with the Mainland, Hong Kong's markets have experienced exponential growth and HKEx has become one of the leading exchanges in the world.  In the process, Hong Kong has also become a leading global financial centre.  As it develops its strategic plan for 2016-18, HKEx will continue to look for ways to help maintain and expand the city's competitive advantages.

Today, there are new and very different opportunities emerging for Hong Kong and HKEx as the Mainland gradually opens its capital markets and expands the scope for domestic investors to invest outside their home market.  These emerging opportunities come with significant risks for Hong Kong in its traditional roles.  Today's opportunities require new capabilities, innovative solutions and above all, prompt action.  Set against this backdrop, HKEx believes now is the time for serious reflection about how Hong Kong and its financial markets should re-position themselves for the future.

"Cities and exchanges overseas see opportunities as China opens up and the Renminbi becomes more international," Mr Li said.  "We should not shy away from what we're good at.  The key to our success lies in our ability to remain relevant to China and maintain our core values.  To stay relevant, we must maintain mutual trust with China, develop new asset class capabilities, offer innovative solutions and continue to be a first mover.  At the same time, we must maintain our core values: the rule of law, international standards, good corporate governance and resilient and robust markets.

"Our value proposition is the mutual market, a win-win solution for the Mainland, Hong Kong and HKEx.  With our Shanghai-Hong Kong Stock Connect programme, we have a successful mutual market model that is scalable across other markets and asset classes. Our vision is to position Hong Kong and HKEx as essential partners in a mutual market that benefits us, our city, Mainland China and the market’s international users," Mr Li said.  "Our aim is sustainable, long-term success for both HKEx and Hong Kong."

The presentation is available for viewing online here. 

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