Farewell to Chow and perhaps goodbye to HKEx as regulator

So farewell, Paul Chow Man-yiu, the longest serving chief executive of the stock exchange, who is sailing off into the retirement sunset this week. His departure may be an opportune time to consider whether the bourse should also say goodbye to its regulatory role.

Chow has been busy over the past few months attending farewell breakfasts, lunches and dinners organised by brokers, fund managers, listed companies and many others.

In his 13 years as boss of the stock exchange - the first time from 1992 to 1997 and then from 2003 until now - he has introduced electronic trading and clearing platforms as well as overseen the listing of the first mainland company.

Brokers and the public all praise him as a successful regulator, who has upgraded the quality of the market and the efficiency of its systems.

The big question being asked is whether the exchange will maintain its role as a front line regulator after Chow's departure. His successor, Charles Li Xiaojia, is no regulator although the former investment banker is clearly capable.

Li has vowed to draw more international listings, very much what Hong Kong will need in the face of stiffer competition from Shanghai and other cities.

But if Li is not a regulator, and is more intent on expanding business and new listings than on regulation, it could be time for the government to look into the controversial issue of whether the exchange should continue to be a regulator of listed companies at all.