Business

Hong Kong trading, IPOs impacted by geopolitics, exchange CEO says

FILE PHOTO: FILE PHOTO: The HKEX sign is seen at the 2020 China International Fair for Trade in Services in Beijing
FILE PHOTO: A Hong Kong Stock Exchange (HKEX) logo in Beijing, China, September 4, 2020. REUTERS/Tingshu Wang

March 29, 2022

HONG KONG (Reuters) – A “fragile” geopolitical environment has slowed trading volumes and IPOs on the Hong Kong Stock Exchange, posing challenges for commodities businesses, particularly nickel, the exchange’s CEO said on Tuesday.

Tensions between China and the United States, exacerbated by the Russia-Ukraine conflict, issues related to the tightening regulatory environment for technology and platform companies, and concerns about ongoing global inflation have “taken a heavy toll on our markets,” Nicolas said Aguzin, Chief Executive of Hong Kong Exchanges and Clearing.

“We are very aware that our commodities business, particularly nickel, faced some challenges after the Russia-Ukraine crisis,” added Aguzin, who was speaking at an event setting out HKEX’s corporate strategy for the coming years.

HKEX’s London Metals Exchange subsidiary ceased operations earlier this month, canceling trading in nickel due to volatility that saw prices double to more than $100,000 a tonne in a matter of hours. A spate of technical glitches after trading resumed left traders furious.

At Tuesday’s event, Aguzin reiterated that HKEX’s strategy is to pay attention to connecting Chinese and global capital markets, saying the exchange is working on a number of initiatives to boost the vibrancy of its markets.

He also acknowledged that the number of people leaving Hong Kong is affecting the financial market in the city.

“We’re seeing a limited inflow of talent and an increasing number of people moving out of town, which has led to a talent war in the finance industry,” he said.

Hong Kong has recently begun to ease strict anti-COVID measures that corporate lobby groups have warned would undermine the business environment in the financial hub and cause an exodus of professionals.

However, restrictions on daily life and quarantine for those entering the country remain in place.

(Reporting by Alun John; Editing by Richard Pullin and Kenneth Maxwell)

https://www.oann.com/geopolitics-has-hurt-trading-and-ipos-in-hong-kong-says-bourse-ceo/?utm_source=rss&utm_medium=rss&utm_campaign=geopolitics-has-hurt-trading-and-ipos-in-hong-kong-says-bourse-ceo Hong Kong trading, IPOs impacted by geopolitics, exchange CEO says

DUSTIN JONES

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