HKEX global offices to bring good return
- Openings in the US and Europe by city’s stock exchange aim to attract more initial public offerings and Chinese companies that face delisting on Wall Street
Mainland China has long been a gravy train for Hong Kong’s capital market. But as an international financial hub, it cannot afford to put all its eggs in the same basket.
As the city’s premier financial representative, Hong Kong Exchanges and Clearing (HKEX) needs to expand its global reach and to market the city as a fundraising destination.
In its outreach, HKEX plans to open at least two offices, one in the United States and another in Europe. It will be interesting to see whether it will ultimately decide to station a representative in Britain or in the European Union, that is, as a prognostic on London’s future as a place for start-ups and businesses.
Chinese companies now account for 80 per cent of the equities market capitalisation in the city. HKEX realises it needs to diversify sources for business.
And, as geopolitical factors become increasingly difficult for businesses to navigate, it’s even more important for the world’s fourth biggest stock exchange to provide timely information and enhanced communications to enable foreign businesses to explore opportunities in Hong Kong and the mainland.