HKEX makes first offshore investment in China market with 7 per cent stake in Guangzhou Futures Exchange
- The deal is the first time Beijing has allowed a non mainland Chinese investor to buy a stake in a domestic exchange
- Beijing’s approval shows commitment to opening up capital markets to world: analyst
Bourse operator Hong Kong Exchanges and Clearing (HKEX) said on Friday it has acquired a 7 per cent stake in the newly created Guangzhou Futures Exchange.
The 210 million yuan (US$32.45 million) deal is the first time Beijing has allowed a non mainland Chinese investor to buy a stake in a domestic exchange. The acquisition came just two weeks after the futures exchange got the go-ahead from the China Securities Regulatory Commission, and the bourse operator is among Guangzhou Futures Exchange’s founding shareholders.
The Guangzhou Futures Exchange is a major project under Beijing’s bay area project. Friday’s deal will further integrate the capital markets in Hong Kong and Guangzhou, two biggest cities in the development zone, brokers said.
“Beijing’s approval of HKEX holding a stake in the Guangzhou Futures Exchange shows the country’s commitment to opening up its capital markets to the world,” said Gordon Tsui Luen-on, chairman of the Hong Kong Securities Association. “It is a positive move, as HKEX owns a futures exchange that has been operating for more than 40 years. It can share a lot of experience with the Guangzhou exchange. The investment will further integrate Hong Kong into the Greater Bay Area.”
