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Hong Kong stock exchange
OpinionLetters

Letters | HKEX should look beyond London when expanding its horizons in Europe

  • Readers discuss the Hong Kong stock exchange opening more offices abroad, Carrie Lam’s report card, and why policymakers should try booking a quarantine hotel room using the existing system

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A screen displays the AEX index at the Amsterdam stock exchange in the Netherlands on March 30, 2021. Amsterdam overtook London as Europe’s top share-trading centre in 2021. Photo: EPA-EFE
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It is reported in the Post that the Hong Kong stock exchange is planning to establish offices in New York and London for the purpose of further facilitating investors’ trading of Hong Kong-listed stocks. While it is imperative to make a continuous effort to strengthen our position as an international financial centre, and boost our trade volume worldwide, choosing where to focus would be worth careful consideration.

What I wish to highlight here is that apart from London, we should also consider other European cities such as Amsterdam and Frankfurt for the new office. For years, it was true that London was Europe’s largest share-trading centre.

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But things have changed after Brexit, and pundits have been contemplating a decline in trade volume in London in the long run and fiercer competition with Amsterdam or Frankfurt. London could completely lose its leadership position in Europe.

Indeed, Amsterdam overtook London in January last year. Although London clawed back the No 1 spot in June, Amsterdam still ended last year as Europe’s top share-trading centre. Average daily trading in Amsterdam totalled €8.97 billion (US$9.5 billion) in December 2021, ahead of London’s €8.32 billion, according to figures from Cboe Global Markets.

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HKEX CEO Nicolas Aguzin on the future of Hong Kong’s capital market

HKEX CEO Nicolas Aguzin on the future of Hong Kong’s capital market

If we are targeting the European market, I take the view that Hong Kong Exchanges and Clearing ought to carry out a thorough assessment of shortlisted locations before they decide where to establish the office.

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