Bonnie Chan, CEO of the Hong Kong Stock Exchange, shares insights on the HKEX Connect Summit and celebrates a decade of cross-border stock links. She discusses impressive growth in trading volumes and potential new products like bonds and ETFs. The conversation dives into the resurgence of Hong Kong's IPO market, highlighting strategic timing for capital raising. Chan emphasizes the importance of market resilience amidst political changes and the ongoing enhancements in trading infrastructure, signaling a bright future for the Connect program.
The significant growth in southbound and northbound trading over the past decade highlights the expanding accessibility and interest in cross-border investments between Hong Kong and mainland China.
Bonnie Chan emphasized that enhancing micro-infrastructure is crucial for improving user experience, which will ultimately drive greater participation in the Stock Connect program.
Deep dives
Growth of the Stock Connect Program
The Stock Connect program, which began in 2012, has seen significant growth over its first decade, with southbound trading increasing by 50 times and northbound trading by 25 times. This expansion reflects the success and interest in making cross-border investments between Hong Kong and mainland China more accessible. The CEO of HKEX noted that despite the achievements, there remains substantial potential for further development. Future enhancements will include adding more products and expanding the trading options available to investors.
Infrastructure Enhancements and User Experience
Improving micro-infrastructure is essential for enhancing user experience within the Stock Connect framework. Recent changes have illustrated that these upgrades can significantly benefit market operations, particularly during challenging times such as severe weather. By ensuring that the infrastructure is robust, HKEX aims to provide a seamless trading experience, which will encourage more users to participate in the program. The CEO emphasized that these incremental improvements are crucial for the continued growth of the financial ecosystem in Hong Kong.
Global Engagement and Future Market Potential
Global travel and outreach efforts are necessary to promote the Stock Connect program, as many potential investors around the world are still unfamiliar with its benefits. Recent trips to various regions, including APEC meetings, revealed a positive willingness among countries to engage with one another despite geopolitical tensions. This ongoing engagement is vital for attracting more international participants to the market and maximizing capital flow opportunities. The concerted efforts to promote the program reflect its promise as a gateway to the growing Chinese market for global investors.
HKEX CEO Bonnie Chan discusses the HKEX Connect Summit and the 10th anniversary of Hong Kong's cross-border stock link. She speaks with Bloomberg's Stephen Engle.