The Financial Conduct Authority (FCA) UK has greenlit Hong Kong Exchanges and Clearing Limited (HKEX) to establish a London office. The presence in the UK will allow one of the leading Asian bourses to expand its existing European client base. The UK office is expected to open in the first half of this year.
HKEX is currently the 3rd biggest exchange in Asia which already has offices in New York, Shanghai, Beijing, and Singapore. The establishment of the London office later this year will ensure the broker’s presence in all major time zones.
HKEX To Expand By Opening London Office
HKEX is the largest stock exchange in Hon Kong, with more than 2500 listed companies. The combined market capitalization of the listed equities exceeds HK$47 trillion. Foreign investors contribute to almost half of the HKEX trading volume. More than 40% of clients of the exchange are international investors.
Together with our newly opened New York office, our footprint will now cover all key global time zones, supporting us as we connect capital with opportunities and East with West
Nicolas Aguzin – CEO HKEX
Over the past few years, European traders have increased their exposure to Asian equities. Consequently, European clients have a 10% share in the total trading volume at HKEX. A major reason is the listing of a lot of Biotech companies on the Hong Kong bourse.
HKEX Seeks More International Listings
Since London is one of the biggest financial centers of the world, a presence in such a biggest metropolis will open doors to a lot of new opportunities for HKEX. The exchanges already boast a presence in the biggest financial hubs of the world. The new London office will allow the firms to evaluate more international listings.
Recent data also shows that HKEX holds more than 70% of international investments that are made in Chinese A-share equities. The approval from FCA will allow HKEX to establish its subsidiaries in the UK as REcognized Overseas Investment Exchanges.