Hong Kong Exchanges and Clearing (HKEX), the operator of Asia’s third largest stock market, will launch a new digital trading platform this year as part of a comprehensive strategy unveiled by its chief executive. The new platform – Diamond – will initially trade environmental, social and governance-related products such as carbon-emission related contracts and also look at digital assets and megatrends. “We’re very excited about the opportunities in digital and the whole transformation that we’re observing around the world,” said Nicolas Aguzin, who unveiled a blueprint of the bourse’s future development to investors on Tuesday. “Digital assets today represent a total market capitalisation of about US$3 trillion. And we’ve talked about the potential of the market in terms of trading in the future, it could be up to US$100 trillion [in annual volumes] for the whole market in the next 10 years.” The bourse, however, has not yet decided on introducing the trading of cryptocurrencies. Apart from the planned launch of the new digital trading platform, HKEX is also looking to strengthen its role as a super connector between mainland China and the rest of the world. HKEX CEO Nicolas Aguzin struggles to understand why trading halts during bad weather Aguzin said the HKEX will launch exchange traded fund (ETF) connect schemes with bourses in Shanghai and Shenzhen to complement the existing stock and bond connect cross-border trading schemes. A study has been launched to introduce more yuan products and A-shares futures products, he added. The HKEX, which was the world’s top initial public offering market seven times in the past 13 years, will carry out more listing reforms to attract pre-revenue tech firms and US-listed mainland companies. It will also launch an initiative to help smaller companies to raise funds. While the exchange has seen IPOs dry up over the past six months amid a regulatory crackdown by Beijing and the subsequent market downturn, Aguzin remained positive, saying the bourse is currently processing over 170 IPO applications. “Every market around the world was affected by Covid. This is something that no one escaped,” the former JPMorgan executive said. As Hong Kong starts to open up, HKEX will facilitate a lot of interactions, especially in its role as a super connector, he added. Aguzin, the first non-Chinese chief executive to head the exchange, said the HKEX will open more offices overseas as “we become more global”. “We need to make sure that when someone needs something, they can address someone right next to them. If there is a significant global financial centre around the world, there should be a presence from HKEX,” he said. The bourse operator has offices in Shenzhen, Shanghai, Beijing and Singapore. It also owns the London Metal Exchange. Aguzin’s strategy for the bourse is unlike that of his predecessor Charles Li Xiaojia, who made plans every three years. Aguzin, however, did not define a time period to implement his strategy, saying that there were a number of initiatives and focus areas, some of which will have an impact in the short term and others over the medium to long term. “We can be the marketplace of the future. That requires a transformation that will take place over the next few years.”