Stock Connect

Xavier Rolet, one of the brains behind London-Shanghai Stock Connect, joins hedge fund CQS

  • Rolet, former London Stock Exchange chief executive, to help company expand in Asia and China
  • CQS has US$18.1 billion under management as of December 1, 2018
PUBLISHED : Tuesday, 25 December, 2018, 3:00pm
UPDATED : Tuesday, 25 December, 2018, 3:00pm

Xavier Rolet, former London Stock Exchange chief executive and one of the brains behind the London-Shanghai stock connect, which is expected to launch in early 2019, has been named as the chief executive of London-based hedge fund CQS.

Rolet takes over in January and will help the company expand globally, particularly in Asia and mainland China. “I have know [CQS founder] Michael Hintze for 35 years – we both worked at Goldman Sachs in New York. We knew we could work well together, as a team, to expand our trading globally, particularly in Asia and the Greater China region,” he said in a telephone interview, following the announcement of his appointment.

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CQS focuses on fixed income and stocks, and had US$18.1 billion in assets under management as of December 1, 2018. The company has offices in London, Hong Kong, New York and Sydney, and its clients include pension funds, insurance companies, sovereign wealth funds and private banks.

Hintze will become group executive chairman after Rolet’s appointment as CEO, effective January 14.

Rolet, who started his career on the international arbitrage desk at Goldman in January 1984, pushed for the London-Shanghai stock connect during his time leading the LSE, where he worked from May 2009 to November 2017. He said the stock connect was an ideal way for more international investors to trade mainland Chinese A-shares, which were increasingly important internationally.

“I have always believed in globalisation, and the stock connect scheme between the markets in Shanghai and London will bring these two markets closer,” he said.

I have always believed in globalisation
Xavier Rolet

The London-Shanghai stock connect will allow a select group of companies in the two markets to cross-list on the other exchange. HSBC is among firms to be listed in Shanghai, while Huatai Securities is expected to be among the first to list on the LSE. With the new stock connect, LSE will become the first international market outside Hong Kong to connect to the A-shares market in Shanghai.

Hintze said CQS has invested in Hong Kong bonds and stocks since its start in 1999, and that the company would continue to expand in Hong Kong as well as mainland China.

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“A-shares have been added to the MSCI Index, they have become part of the global market. I believe in the strong growth story of the Greater China region,” he said.

“The year 2019 will not be easy for investments, but it will be exciting. I am optimistic about the long-term growth of the markets,” added Hintze.