Hong Kong Exchanges and Clearing Limited (HKEX) claims that it has had a “busy” and “productive” 2023, marked by the achievement of several significant milestones and the launch of new initiatives.
This included the opening of new offices “in New York and London, strategically positioning the business across all major global time zones to be closer to its clients.”
The focus on derivatives, fixed-income and currency products “has also been instrumental in further diversifying HKEX’s business and product ecosystem, giving investors and risk managers even greater choice.”
Throughout the year, HKEX introduced “a range of notable new projects and initiatives, further enhancing the Group’s offering and reinforcing Hong Kong’s role as a leading international financial center.”
Despite the continued complexity of the macroeconomic landscape, Hong Kong’s financial markets have continued “to demonstrate resilience and strength, reinforcing its relevance and role as a vital global superconnector.”
This year, HKEX signed MOUs with “the Beijing Stock Exchange, the Indonesia Stock Exchange (IDX) and the Saudi Tadawul Group, to explore dual-listing opportunities and joint product development, capitalising on deeper business ties with Mainland China, Southeast Asia and the Middle East. Both IDX and the Saudi Exchange have then been added to the list of Recognised Stock Exchanges, allowing for potential secondary listings on HKEX.”
HKEX’s derivatives market “had a strong year with average daily volume of 1.4 million contracts as at 30 November, up 4 per cent from a year earlier.”
Notably, HKEX’s MSCI futures and options products “saw open interest exceed 100,000 contracts for the first time in November, with nominal value of US$4.2 billion. Meanwhile, key products such as Hang Seng Index Futures Options, Hang Seng TECH Index Futures, and USD/CNH Futures set daily trading records during the year.”
The Exchange Traded Products (ETPs) market, “including ETFs and L&I Products, has also gone from strength-to-strength with average daily turnover reaching $14 billion as at the end of November, an increase of around 20 per cent from a year earlier.”
During the year, HKEX has also “welcomed Asia Pacific‘s first Saudi Arabian ETF, part of the 16 new ETFs introduced in 2023, bringing the total to 179.”
HKEX‘s Connect franchise has “seen ongoing enhancements, including: the addition of up to 10 trading days, the inclusion of 1,000 more stocks for Northbound Connect, and the inclusion of international companies for Southbound Connect. Additionally, Swap Connect and the HKD-RMB Dual Counter program were introduced to strengthen Hong Kong’s position as a leading offshore RMB hub.”
The upcoming introduction of China Treasury bond futures, and the A50 options, will further solidify Hong Kong’s status “as an international RMB trading center.”
For 2023, the global IPO market “continued to be impacted by soft market sentiment and the broader macroeconomic backdrop. Whilst this impacted Hong Kong’s markets, there was continued momentum in listings during the year.”
In 2023, HKEX reportedly “welcomed 64 new listings, raising $40.9 billion as of 15 December.”
Throughout the year, HKEX remained “committed to further enhancing its attractiveness and competitiveness as a listing venue of choice, and to this end, launched a consultation paper on severe weather trading, concluded discussions on GEM reform and introduced a new chapter for specialist technology companies.”
HKEX Chief Executive Officer Nicolas Aguzin said:
“Over the past year, we have launched more Connect-related initiatives and enhancements than in any of the previous eight years, strengthening Hong Kong’s role as the superconnector between China and the world.”