HKEX CEO discusses buying and selling halt guidelines as storm warning ends session early

One of many world’s greatest inventory exchanges has a particular coverage for unhealthy climate – it halts commerce at any time when authorities difficulty a storm warning of Sign 8, the third highest stage, or larger.

Nicolas Aguzin, the CEO of Hong Kong Exchanges and Clearing, mentioned the bourse is “continually” trying into reviewing this protocol that halts commerce in its $3.9 trillion inventory market alongside different structural points that buyers face in Hong Kong.

When requested when buyers can count on to see a change on this coverage, Aguzin instructed CNBC’s Emily Tan that evaluations are happening. Aguzin made his remarks simply hours earlier than one other storm warning triggered an early finish to Wednesday’s buying and selling session.

The Hong Kong Observatory has issued a Sign 8 or larger a complete of six instances in 2022, twice in 2021, and 4 instances in 2020.

“We’re at all times how we will improve the microstructure of our markets, to be sure that buyers can take part on a regular basis,” Aguzin mentioned. “You may be assured that we’re at all times trying into this.”

He added that buying and selling insurance policies have shifted up to now, reminiscent of modifications to vacation buying and selling. The bourse launched its derivatives vacation buying and selling service in Might after consideration of “market suggestions and market readiness.”

“Now we have to stability the curiosity of the folks, the safety of the folks, security of the folks,” Aguzin mentioned, including that the bourse is “at all times evaluating” how one can make Hong Kong a prime world market.

Shortly following the interview, the Hong Kong Inventory Alternate suspended commerce after the H.Ok. Observatory issued a Tropical Cyclone Warning Sign No. 8.

“There might be no Closing Public sale Session for that buying and selling day if buying and selling has not been resumed by 3:45 pm (for full day buying and selling) or 11:45 am (for half day buying and selling),” the discover says. HKEX confirmed there won’t be prolonged buying and selling Wednesday.

Aguzin mentioned he believes in Hong Kong’s resiliency in opposition to many challenges, together with the newest storm hitting town, world inflation, in addition to geopolitical issues.

“What we’re specializing in is the resiliency of Hong Kong – Hong Kong has confirmed time and time once more that it will possibly come again.”Hong Kong has confirmed time and time once more that it will possibly come again,” he mentioned. “I do imagine within the long-term power of our market and the particular fundamentals that Hong Kong has as a global monetary middle.”

The Hong Kong Inventory Alternate in a latest session paper outlined proposals for a brand new itemizing regime for particular expertise firms which might ease necessities for itemizing within the metropolis.

The revisions embrace a decrease threshold of income for commercialized companies in sure sectors, together with next-generation data expertise and superior supplies. Firms would want to achieve a valuation of $250 million Hong Kong {dollars}, decrease than the present requirement of HK$500 million.

When requested if the bourse is prioritizing amount over high quality in its bid to draw extra listings to town, Aguzin mentioned he sees potential in investing in these firms.

“What we’re making an attempt to do is tackle high-quality firms which have nice merchandise,” Aguzin mentioned. “Their money flows are going to be additional sooner or later, however their alternatives for buyers are excellent.”

Aguzin added that the just lately proposed measures are anticipated to be solidified and formally introduced “hopefully not too removed from now.”