Hong Kong Exchanges & Clearing (HKEx) has published its 2014 results, and whilst much mention is made of the Shanghai-Hong Kong Stock Connect, it also drew attention to what is described as its ‘critical albeit not so eye-catching, initiatives and enhancements’.
The exchange highlighted its continuing effort in developing its fixed income and currency businesses. Trading of RMB Currency Futures increased 48 per cent compared with 2013.
Following the acquisition of the London Metals Exchange, building an Asian commodities business, what it calls the ‘east wing’ of the LME and to extend the LME to the Asian time zone is an important part of its strategy. The launch of the London Metal Mini Futures on the Hong Kong platform is the first step.
The exchange also drew attention to its publication of a concept paper on weighted voting rights, whereby governance structures that give certain persons greater voting powers in proportion to their shareholding should be allowed in companies listed in Hong Kong.
The exchange said that the feedback process is ongoing and they commented, “we hope the market will come to a consensus that will benefit Hong Kong’s long-term future.” Whilst the exchange remains outwardly impartial on this issue, the commercial sense is that they would appreciate the chance to relax the local rules.
Hong Kong’s platform was improved in 2014 with the launch of the Orion Central Gateway in June 2014. The Orion market data platform for the derivatives market was launched in December 2014.