First in line is a deal to develop energy plays on Shanghai's futures exchange
Hong Kong Exchanges and Clearing (HKEx) has ditched plans to forge international alliances and will instead pump resources into China expansion, according to sources at the exchange.
As part of this new strategy, the exchange has signed an agreement with Shanghai's futures market to develop energy futures.
The sources said the exchange decided to change tack under the helm of the board of directors formed in mid-April and headed by new chief executive Paul Chow Man-yiu.
This new corporate strategy comes as the exchange struggles with poor first-quarter results, with profits in the first three months dropping 25 per cent compared with the corresponding period the previous year.
The exchange will not pump more money into alliance-building or cross-trading platforms with overseas markets as it has done in the past three years.
An attempt was made to forge an alliance with the New York Stock Exchange and another nine markets, and the exchange also built up an agreement with the London Stock Exchange to develop cross-listing and cross-border trading.
