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“We aim to build new price discovery capabilities, benchmarks and risk management tools in fixed income, currency and commodities to complement our well-established equity and equity derivatives business.” – HKEX Chairman C K Chow
Hong Kong Exchanges and Clearing Limited (HKEX) today announced its Strategic Plan 2016-2018, outlining the development roadmap for HKEX and Hong Kong’s financial markets.
HKEX’s strategic goals for the three-year period are to extend and deepen its value proposition as China and the world markets accelerate their mutual integration. The two main facets of HKEX’s value proposition are related, as the company provides:
- the most effective platform for cross-border market access; and
- a unique destination market in Hong Kong for products with both Chinese and international relevance.
“Our new strategic plan will help us expand the spectrum of our business and strengthen Hong Kong’s financial markets,” said HKEX Chairman C K Chow. “We want to be the global exchange of choice in all asset classes for our Mainland clients and for our international clients who want exposure to China.
“Our strategy of developing multi-asset class capabilities will enable us to achieve transformational growth arising from the Mainland’s inevitable integration with the world markets, the accelerating internationalization of Mainland investors’ portfolios and the challenges faced by Chinese and international commodity markets.”
The plan includes HKEX’s business strategy for its three asset classes: equity, commodities and fixed income and currency, or FIC. It also covers the company’s goals in client relationship management and platform enhancement as well as market microstructure and regulation.
HKEX is aiming to reach its new strategic goals over three years, though it expects accomplishment of some may take longer because it has an ambitious plan and development of financial markets is subject to many factors which are beyond HKEX’s control.
HKEX wants to be the go-to exchange as it relates to trading RMB, one of its key initiatives is building on their existing USD/CNH futures contract, and it plans to launch more benchmark derivatives with China relevance in Hong Kong, including additional RMB currency products as well as derivatives on onshore interest rates. In 2015, HKEX saw record RMB volumes, as reported here on LeapRate.
“We are pioneers in connecting the world’s financial markets,” said HKEX Chief Executive Charles Li. “As we provide bridges to link China with the world, we are reshaping the global market landscape.
Along with the announcement of the Strategic Plan, HKEX also unveiled its new corporate identity today that includes a new logo. The mark in the HKEX logo symbolizes the connection of East and West and highlights the Group’s ambition to reshape the global market landscape by connecting China with the rest of the world.
More information on the new corporate identity is available on the HKEX group website.