Hong Kong Exchanges and Clearing (HKEx) remains focused strategically on the mainland with local factors, such as reinstatement of the closing Hong Kong auction, lower down the agenda.
“HKEx continues to look at potential market microstructure enhancement measures but does not have any plans for changes at this point. Any future proposals in this area will be put forward for public consultation before there are any decisions on possible implementation,” an HKEx spokesperson said.
HKEx published its six-month interim results on 15 August. Tactically, its mission to win business from the mainland is the ongoing dominant theme.
Listed companies from mainland China account for more than half of HKEx’s market capitalisation and 70% of market equity turnover.
Capitalising on the internationalisation of the renminbi has continued this year and June 2013 saw HKEx’s listing of Asia’s first offshore renminbi bond exchange-traded fund, which is traded and settled under the exchange’s dual counter model. HKEx had just shy of a hundred renminbi-denominated products traded on the cash market at the end of June.
In the first half of 2013, HKEx signed agreements with a number of mainland provinces to foster cooperation and the exchange of information. It has also been road-showing itself in a dozen Chinese cities, trying to promote Hong Kong as a listing market for mainland companies.
CESC, the index joint venture with Shanghai and Shenzhen mainland stock exchanges, continued to launch new index products. CES 120 Futures were launched on the futures Exchange on 12 August 2013.
Regarding fixed income and currency clearing, HKEx is now in the final preparation stage for the launch of OTC Clear. Twelve financial institutions have agreed to join OTC Clear as founding shareholders. System testing and a market rehearsal have been carried out and it is due to launch later this year, subject to regulatory approval.
OMD, the new market data system forming part of the HKEx Orion technology initiatives, will commence later this year for the cash market and in the second quarter of next year for derivatives.