Former MTR chief in line to lead bourse
Former MTR Corp chief executive Chow Chung-kong is the front-runner to be the next chairman of the Hong Kong Exchanges and Clearing.
A government source told The South China Morning Post that given Chow's international reputation and experience as a chief executive of a listed company, he would be a suitable candidate to take up the top job at the exchange. Chow (pictured) was yesterday appointed by the government to the HKEx board.
'One major duty of the chairman of the HKEx is to promote the local bourse to the world, and it needs someone with international vision and recognition,' the source said.
Chim Pui-chung, the legislator representing brokers, said he had reservations, however, as Chow has not had experience on the HKEx board.
'Mr Chow has never worked at brokerage firms or the HKEx board before,' Chim said. 'I just wonder if he understands how to help the stock market to develop further ... He may end up always needing to seek advice from the financial secretary about exchange affairs, which may affect the independence of the exchange.' Chief executive Charles Li Xiaojia has expressed interest in renewing his contract in October and is expected to support Chow in his new role.
Chow, 61, is tipped to succeed Ronald Arculli, who will step down at the exchange's annual general meeting on April 23. Two government-appointed HKEx directors, Laura Cha Shih May-lung and Moses Cheng Mo-chi, were being tipped as potential candidates but have stepped down from the board after six years.
The government generally does not appoint anyone as a director of a public body for longer than that. By law, the HKEx chairman has to be approved by the city's chief executive.
Financial Secretary John Tsang Chun-wah yesterday appointed Chow and the former vice-chairman of Goldman Sachs (Asia) Timothy Freshwater as HKEx directors on two-year terms and reappointed Arculli as a director for one year. This will mean Arculli will have spent seven years on the board.
A government source explained that Arculli will serve as chairman of the World Federation of Exchanges until October and, therefore, would need to stay on the HKEx board.
