HKEX chief executive Charles Li attempted to inspire confidence in Hong Kong calling its role as Asia’s financial hub «undisputed» despite ongoing health and political headwinds.
«I don’t see anything on the horizon that’s going to fundamentally change that,» Li said in a «Bloomberg» report. «But it’s required of all of us to maintain confidence, to maintain our belief this great city is going to become even greater once we are able to get over on the other side of the current public health challenges and other challenges.»
This is not the first time that Li, who is retiring next year in October, has made public comments to prop up confidence in Hong Kong.
In January this year, Li said on his official blog that the city's glory days were not over despite factors that posed a challenge to the «One Country, Two Systems» regime – a key framework required so that «Hong Kong's future success can be ensured.»
Local Politics: «They Come, They Go»
Li’s comments came on the same day that Beijing signaled further tightening as the local legislature held a hearing for a bill that would criminalize any disrespect towards China national anthem – a move that sparked unrest around the lunch hours in the city’s central business district. But the Hong Kong bourse’s chief said he was not looking into specific political initiatives as «they come, they go».
«We have no control over them,» he said. «We just have the commercial initiatives that go into the heart of enhancing Hong Kong’s global competitiveness. And that remains unchanged.»
Foreign Politics: Political Considerations for Business not Preferred
«We actually don’t want to see somehow those strategic decisions, corporate decisions, commercial decisions being affected by political considerations,» Li said in a separate call, citing the potential shift from companies delisted in the U.S. opting for Hong Kong for fundraising.
«But sometimes you can’t really help with certain political challenges that frequently visit upon us.»
Commercial, Not Political
Also on the same day, the Hong Kong Exchange and Clearing unveiled a licensing agreement with MSCI to offer 37 futures and options contracts based on MSCI equity indices in Asia and emerging markets.
«This is a commercial transaction,» said MSCI chairman and CEO Henry Fernandez, who claimed that Hong Kong was chosen over Singapore to house the derivatives licensing franchise due to a large client base and access to Chinese investors. «It’s not a political one. Nobody should read anything into this timing of the announcement.»
