(HKSAR 25) “One country, two systems” crucial to future of Hong Kong’s financial sector, says HKEX CEO-Xinhua

Aerial picture taken on May perhaps 29, 2022, displays a watch of the Global Commerce Centre (ICC) in south China’s Hong Kong. (Xinhua/Li Gang)

The follow of “1 region, two programs” has produced a exceptional ecosystem whereby Hong Kong has evolved into a crucial and important tremendous connector amongst the Chinese mainland and the rest of the planet, stated Nicolas Aguzin, main executive officer of the Hong Kong Exchanges and Clearing Constrained (HKEX).

HONG KONG, June 29 (Xinhua) — The exercise of “one country, two devices” in Hong Kong is significant to the future of its financial sector, said Nicolas Aguzin, chief executive officer of the Hong Kong Exchanges and Clearing Confined (HKEX) which has built connecting China and the globe a prioritized technique.

The practice of “a person region, two methods” has designed a exclusive ecosystem whereby Hong Kong has progressed into a critical and valuable super connector in between the Chinese mainland and the rest of the entire world, Aguzin mentioned in an interview with Xinhua.

“For yrs, Hong Kong has been a conduit concerning East and West, a very important global hub supported by its proximity to the mainland, deep talent swimming pools, sturdy infrastructure, internationally-aligned regulatory regimes and techniques, totally free move of capital and transparent, open and globalized marketplaces,” he explained.

Aguzin put in most of April in mainland cities such as Beijing and Shenzhen.

“I used time with inventory exchanges, regulators, and a great deal of people today. It was great to see how we have truly a widespread objective of building confident that Hong Kong remains as an worldwide fiscal middle,” he claimed.

Picture taken on June 25, 2022, exhibits a light-weight show in Tsim Sha Tsui, south China’s Hong Kong. (Xinhua/Wang Shen)

Hong Kong, New York Metropolis and London are collectively identified as “Nylonkong,” an acronym of the leading a few monetary centers in the globe. In the most up-to-date edition of the World Monetary Facilities Index posted by British assume tank Z/Yen Team and China Progress Institute in Shenzhen, Hong Kong managed its 3rd put in over-all position.

In March, HKEX declared that it will supply on its vision by creating on a few strategic pillars: connecting China and the world, connecting money with opportunities, and connecting currently with tomorrow.

“It really is pretty crucial. You want to make confident that Hong Kong is vibrant and it can help link the globe with China,” Aguzin mentioned. “The much more connectivity, the superior.”

Creating on its one of a kind China strength, HKEX will continue on to the two bring the China advancement tale to worldwide traders and assistance Chinese capital entry worldwide opportunities.

“We are in a very one of a kind position. We have a current market that is increasing pretty speedy, and at the identical time in Hong Kong, we have today a problem wherever you have a free move of cash and you have institutions that have been functioning below for so several many years,” he mentioned. “We have a wonderful partnership with a ton of stakeholders in the mainland that makes it possible for us to have this pretty uncomplicated conversation.”

Picture taken on July 31, 2021, exhibits the statues on the sq. of Hong Kong Exchanges and Clearing Restricted (HKEX) in south China’s Hong Kong. (Xinhua/Wu Xiaochu)

Aguzin joined HKEX as its CEO on May well 24 last 12 months from J.P. Morgan, exactly where he was most a short while ago CEO of J.P. Morgan’s Intercontinental Non-public Bank. He has been primarily based in Hong Kong considering that 2012.

Above the past 25 several years, Hong Kong has grow to be Asia’s most vivid market place and remained a primary intercontinental finance heart. HKEX’s marketplaces mirror Hong Kong’s further growth as a world wide financial center with China’s economic increase.

The current market cap of Hong Kong’s stock markets has grown from 3.2 trillion Hong Kong dollars (407.8 billion U.S. dollars) at the stop of 1997 to 42.1 trillion Hong Kong dollars (5.37 trillion U.S. bucks) at the close of 2021, facts from the bourse showed.

Ordinary day by day turnover on HKEX’s hard cash current market attained 166.7 billion Hong Kong bucks (21.25 billion U.S. dollars) at the stop of 2021, in comparison with 15 billion Hong Kong pounds (1.91 billion U.S. bucks) in 1997.

Photograph taken on June 23, 2022 reveals the morning light at the Victoria Harbor in Hong Kong, south China. (Xinhua/Lui Siu Wai)

Hong Kong has been 1 of the top first public offering (IPO) venues globally for much of the past decade. The listing reforms in 2018 have propelled Hong Kong to grow to be a key new financial system market, and in individual, Asia’s greatest and the world’s second-largest biotech capital raising hub.

Hunting ahead, Aguzin said he believes it is crucial that Hong Kong proceeds to grow its distinctive posture as a connector in between the mainland and the relaxation of the world.

“I am quite optimistic about both equally China’s ongoing growth and Hong Kong’s ongoing unique posture supporting the ongoing progress of the region’s capital marketplaces and the companies of tomorrow. I am persuaded the best several years are in advance of us,” he explained. ■