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HKEX and Guangzhou Futures Exchange to explore possibility of developing products to support China’s climate goal
- HKEX and GFEX will collaborate on the feasibility of developing products that can be traded both on onshore and offshore markets
- It is the first collaboration between the two bourses to promote green finance and to tighten cooperation between Hong Kong and the mainland’s capital market
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Bourse operator Hong Kong Exchanges and Clearing (HKEX) on Friday signed an initial agreement with Guangzhou Futures Exchange (GFEX) to explore the feasibility of developing products that support China’s aim of achieving its carbon neutrality goal.
Under the memorandum of understanding, the two bourses will collaborate on products that can be traded both on onshore as well as offshore markets in Hong Kong by international investors, HKEX said.
The MOU marked the first collaboration between the two bourses to promote green finance and to tighten cooperation between Hong Kong and the mainland’s capital market to further develop the Greater Bay Area.
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While HKEX gave no details about these products that would help support President Xi Jinping’s goal of reaching peak carbon emissions by 2030 and carbon neutrality by 2060, brokers speculated that they would most likely be related to emissions-related derivatives.
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“Reflecting our China anchored strategy, HKEX will work with GFEX to actively explore new opportunities to drive the development of a green and low-carbon market in the region, and progress innovations to further the opening-up of China’s futures market,” said Nicolas Aguzin, chief executive of HKEX.
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The two exchanges will also work together in areas such as clearing, technology and collaborate on marketing and investor educational efforts, the HKEX said.
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