Mainland-born banker vies for HKEx top job
A mainland-born, western-educated investment banker is a candidate to be the next chief executive of Hong Kong Exchanges and Clearing.
Observers say the exchange would like a chief executive with a strong mainland connection. But some brokers and lawmakers are worried the candidate, whose identity has been kept confidential as he is still working for another firm, may lack the technical and regulatory experience needed for the job.
The candidate, who speaks Putonghua and English, studied law and is working at an international investment bank. It is not clear whether he is the sole candidate for the job.
The selection committee, headed by HKEx chairman Ronald Arculli, identified the candidate to replace current chief executive Paul Chow Man-yiu, who has said he will retire at the end of April next year.
The candidate met all 12 independent directors but not Mr Chow, who is not part of the selection process.
Several HKEx directors said the candidate made a good impression with the board yesterday, but they had not yet approved the appointment. They are expected to hold more meetings with him before a vote is taken. If selected, he will then need the approval of the Securities and Futures Commission.
'The candidate was born on the mainland, but he never worked at mainland firms or regulatory bodies,' said an HKEx source. 'He worked at many investment firms in Hong Kong for many years, so he knows the local market very well.
'The candidate cannot speak fluent Cantonese, but neither does SFC chief executive Martin Wheatley, who speaks only English. Hong Kong is an international financial centre so we should have different talent from around the world.'
Another HKEx source said the candidate, if confirmed, would start working in the last quarter under Mr Chow to improve his knowledge of regulations and the trading system.
'It is fortunate that we have found a candidate who not only has a good understanding of the mainland but also the respect of our mainland counterparts,' another source said.
But Hong Kong Stockbrokers Association chairman Kenny Lee Yiu-sun raised brokers' concerns. 'The HKEx chief executive should not simply have an investment banking background. We need to develop the scripless market, upgrade the trading system, as well as study whether to reintroduce the closing auction system. HKEx should ask Mr Chow to stay longer to finish these projects.'
Legislator Chim Pui-chung said: 'The new HKEx chief executive should understand the local brokerage community and have knowledge of the market.'
HKEx yesterday reported first-quarter net profit of HK$834.24 million, down 49.43 per cent from HK$1.65 billion a year earlier. Basic earnings per share fell 49.35 per cent to 78 HK cents. As usual, it did not pay a quarterly dividend.
Mr Arculli warned of challenging times ahead.
KGI chief operating officer Ben Kwong Man-bun said second-quarter earnings should be better.
