International investors can’t get enough of China, and Hong Kong Exchanges and Clearing has been at the innovation coalface, facilitating access by upgrading its post-trade systems and using new technologies to accelerate the settlement of securities traded through the Stock Connect links between China and Hong Kong
China’s capital markets have never had it so good. With the inclusion of the country’s A-shares in the MSCI indexes1 and Chinese bonds in the Bloomberg Barclays Global Aggregate Bond Index, China’s A-share market is expected to embrace a record high foreign investment in 2019, totalling in a range between US$70bn and US$125bn2 (see Figure 1).
Facts like these, coupled with the ongoing internationalisation of the renminbi (RMB) currency, could not make Charles Li happier. As Chief Executive of Hong Kong Exchanges and Clearing (HKEX), he has made it his mission to facilitate capital flows between Hong Kong and mainland China through the Stock Connect trading links,3 thus connecting global capital with Chinese issuers on the Hong Kong Stock Exchange. Now, given the expected capital inflows, he is keen to push those links towards an even grander vision: connecting China with the world.
His bold three-year plan for HKEX is designed to transform its predominantly equity-based exchange and futures exchange into a global market leader in the Asian time zone.
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