Li Xiaojia will leave office early! Ten years in charge of HKEx

category:Finance
 Li Xiaojia will leave office early! Ten years in charge of HKEx


In response, the Hong Kong SAR government respects Li Xiaojias decision and expresses its heartfelt thanks to him for his outstanding contribution to Hong Kongs financial market in the past decade. Li Xiaojia has been in charge of the Hong Kong stock exchange for 10 years. The Hong Kong stock exchange was born out of a regional exchange and became the most important capital market in the Asia Pacific region and even in the world. This year marks the 20th anniversary of the establishment and listing of the Hong Kong stock exchange. In the past 20 years of development, the SEHK has continuously reformed itself. The historic launch of H shares has laid a solid foundation for Hong Kong to become an international market. Subsequently, interconnection, bond link and different rights for the same share have been successively launched, making the HKEx once again on the stage of embracing the new economy.

The chairman of the Hong Kong stock exchange, Mr. Smith, once summed up, recalling that before the listing of state-owned enterprises in Hong Kong, Hong Kong was only a local market. At that time, there were only 6 million people in Hong Kong. How big was the economic strength? Therefore, without mainland enterprises, Hong Kong would not have the status it has today.

Li Xiaojia leaves as CEO ahead of schedule

Why do you think you can be the chief executive of the Hong Kong Stock Exchange?

This is the interview question given to Li Xiaojia by the then chairman of the Hong Kong stock exchange.

In the twinkling of an eye, in the past 10 years, Li Xiaojia will officially step down as the chief executive of the Hong Kong stock exchange group at the end of this year.

Li Xiaojia said, being the chief executive of the HKEx group is the most proud and unforgettable page of my career. I am honored to work with a group of outstanding colleagues to overcome difficulties and open up new territory, so that the business of the Hong Kong stock exchange can be at the forefront of the global financial market, connect China and the world, and support Hong Kong to become a brighter international financial center.

On May 7, this year, the Hong Kong Stock Exchange published the news that Li Xiaojia would not seek to renew his current contract after the expiration of his current contract in October 2021. This time he left early, Li Xiaojia did not disclose his next move and whether he would continue to stay in the financial market. However, he disclosed to the media that he would continue to develop in Hong Kong and stressed that Hong Kong is his home.

With regard to Li Xiaojias early resignation, the chairman of the Hong Kong stock exchange, Mr. Shi Meilun, said, on behalf of the board of directors of the Hong Kong Stock Exchange and the financial industry in Hong Kong, I would like to thank Li Xiaojia for his foresight and sagacity. He has played an important role in the development of Hong Kongs capital market, ensuring that the HKEx is in a very favorable position to meet the opportunities and challenges in the future. We also respect his decision to leave office He will stay in the group for a period of time and continue to share his expertise.

The government of the Hong Kong Special Administrative Region respects Li Xiaojias decision and expresses its heartfelt thanks to him for his outstanding contribution to Hong Kongs financial market in the past decade.

According to the Hong Kong government, since taking office in January 2010, Li Xiaojia has led the Hong Kong Stock Exchange and Hong Kongs capital market to make a series of major breakthroughs. It has brought a steady stream of momentum and growth to Hong Kongs capital market and greatly helped to consolidate Hong Kongs position as a leading international financial centre.

According to the Securities Times reporter, Dai Zhijian, who has just been appointed as the acting chief executive officer, has the opportunity to compete for the next chief executive. Yao Jiaren, the head of the HKExs market director, Chen Yiting, the chief executive of the Hong Kong stock exchange, and Huo Bingguang, who had previously been transferred to the London Metal Exchange of the Hong Kong stock exchange, were the advisers.

Interconnection, connecting China and the world

On January 16, 2010, Li Xiaojia officially took over the post of Zhou Wenyao and became the chief executive officer of the Hong Kong stock exchange. Over the past 10 years since taking charge of the HKEx, the stock price of the Hong Kong Stock Exchange (0388. HK) has risen by 297%. As of September 30, the stock price was at HK $361.6, with a total market value of HK $458.4 billion. It is one of the most important blue chip stocks in Hong Kong. In the global financial circle, it is a recognized fact that Hong Kong stock market has never been squeezed out of the core circle of Chinas capital market.

In order to make the Hong Kong market closer to the largest and most important customers, the Hong Kong Stock Exchange began to adjust the trading period of Hong Kong shares in stages in 2011. In order to break through the barriers between the goods of the Hong Kong market and the money of the mainland, the money of the world and the goods of the mainland, the opening time of Hong Kong shares was synchronized with that of a shares on March 7, 2011.

At the same time, HKEx and HKEx have more say in terms of pricing in 2012.

Of course, its most praised contribution is to promote the interconnection between Hong Kongs capital market and the mainlands capital market. The term connectivity comes from his book of ten thousand words, which was written in 2011 to expound the concept. Later, when the strategic plan was updated in 2013, it was incorporated into the core strategy. However, the market is generally not optimistic, believing that it involves the opening up of capital controls. For example, the exchange of RMB into Hong Kong dollar within the territory can be accomplished without the Hong Kong Stock Exchange unilaterally.

However, people with ability can jump out of the elegance of Swan Lake even with a sutra hoop. In 2014, Li Xiaojia and GUI Minjie, then chairman of the Shanghai Stock Exchange, drew the prototype of the Shanghai Hong Kong stock connect on the napkin of the teahouse. With the closed-loop settlement of the Hong Kong Stock Exchange and zhongdeng stock exchange, the interconnection of Hong Kong stock and A-share under capital control was realized.

On November 17, 2014, the hall of the Hong Kong stock exchange was jubilant, and the Shanghai Hong Kong Link was officially launched.

On the next day (November 18, 2014), the Hang Seng index continued to fall, with a full day decline of 1.13%. The interconnection transaction continued to cool down, and the usage quota of northbound and southbound was only 37% and 7.6% respectively.

In the following two days, the Hang Seng index continued to fall, and the transaction of interconnection was close to the freezing point.

Li Xiaojia was quite optimistic about the cold current in the first week of its opening. He said: we are in charge of building the bridge. When the bridge is built, we are not afraid that no one will leave.

In the following years, the northward and southward funds began to bring some long-term, far-reaching and beneficial changes to the market structure of a shares and Hong Kong shares.

Two years after the implementation of the Shanghai Hong Kong stock connect, Shenzhen Hong Kong stock connect was opened on December 8, 2016. So far, the infrastructure of interconnection has been completed.

On November 18, 2016, the promotion meeting of Shenzhen Hong Kong stock exchange was held in Shenzhen Stock Exchange. Li Xiaojia answered media questions at the promotion meeting of Shenzhen Hong Kong stock exchange.

In 2017, the buy and buy of southbound funds created an unprecedented bull market for Hong Kong stocks. In this year, many Hong Kong stocks, driven by the fund, reached a record high and their share prices rose several times. In 2018 and 2019, with more and more global stock indexes including A-shares into the scope of stock selection, a large number of passive funds (ETFs) increase their holdings of a shares through the land stock connect. So far, foreign capital has become an indispensable part of the A-share investor ecology.

The innovative model of the Shanghai Hong Kong stock connect can make the two-way opening of Chinas capital market first come true at its own door. Li Xiaojia said in an exclusive interview with reporters. For some market participants who call interconnection a magic stroke of the two-way opening of the capital market, Li Xiaojia laughs that he should apply for a patent, but he still insists: the CSRC and the SFC of Hong Kong are the great heroes, because the regulatory cooperation between the two places and mutual assistance in law enforcement are the guarantee for the success of the Shanghai Shenzhen Hong Kong link.

In addition, the bond link was officially launched on July 3, 2017. Since its launch, both the trading volume, foreign holdings and the number of registered investors have increased significantly. According to the China Daily News, in the first half of 2020, the average daily turnover of the bond link reached 19.9 billion yuan, a half year high since its opening, which is three times that of the first half of 2019. The average daily transaction amount of the bond link in May 2020 reached a single month high of 26 billion yuan.

The times force reform

After injecting mainland elements into the investor structure of Hong Kongs capital market, Li Xiaojia did not stop the pace of reform and began to reform the structure of Hong Kong listed companies.

It is worth mentioning that at that time, China was in the period of Internet dividend. The new economy represented by the Internet had a very distinct characteristic: on the one hand, if you want capital, you have to dilute your equity, but on the other hand, you have to firmly grasp the right of control. As long as the capital returns, they do not seek to control the enterprise. Therefore, a large number of enterprises with the same share but different rights are on the Internet The market has emerged and has been listed in the United States one after another.

Li xiaojiali, who was full of regret, persistently launched two rounds of IPO reform attempts in Hong Kong stock market in the following years. Finally, on April 30, 2018, the revised main board listing rules officially took effect, and companies with the same share but different rights (WVR) structure and unprofitable biomedical Enterprises were allowed to be listed in Hong Kong shares.

However, the new rules are almost precisely aimed at Chinese Internet upstarts. The same share with different rights must be innovative industrial companies with successful operation - the bottom line of market value is HK $40 billion; or it is relaxed to HK $10 billion, but the annual profit must be greater than HK $1 billion. The new regulations also add a section on second listing of qualified issuers to provide convenience for applicants from Greater China region to go to Hong Kong for secondary listing. Subsequently, a large number of biomedical companies with the same share but different rights, such as Guo Zhiqing, registered in Hong Kong stock market one after another.

On July 9, 2018, Xiaomi group became the first listed company with dual equity structure in Hong Kong stock market, followed by meituan review on September 20. The leading biomedical companies such as Geli pharmaceutical, Baiji Shenzhou and kangxinuo biological Co., Ltd. scrambled for the beach and wrinkled the dull lake water of Hong Kong stock market.

Fortunately, in the past four years, new technology and new economy have become a new wave driving the development of the world economy Although we missed one or two big IPOs, we began to seriously think about how Hong Kong should keep pace with the times and how to consolidate its unique position as an international financial center

New economy enterprises transform Hong Kongs financial market

Let capital and biotechnology collide in Hong Kong, and then let Hong Kong become a global Biotechnology Center. This is another grand goal of Li Xiaojia after interconnection and opening up the listing of companies with different rights in the same share. Today, the Hong Kong Stock Exchange has become the worlds second largest trading center for biotechnology companies.

As of September 30, 2020, the number of unprofitable biotechnology companies listed in Chapter 18a in Hong Kong has reached 20, an increase of 12 from 8 in the same period of last year, and the total amount of raised funds has reached HK $47.67 billion.

On September 27, Li Xiaojia, attending the Fifth China Pharmaceutical Innovation and investment conference, said that he would consider including biotechnology companies into the interconnection, especially the Hong Kong stock connect, so that mainland investors could also invest. Up to now, about 154 pharmaceutical companies have successfully landed on the Hong Kong stock exchange with a market value of HK $2.6 trillion. Some biotechnology companies have been included in the Hang Seng Index.

In his speech at the Yabuli Forum on Chinese entrepreneurs in 2020, Li Xiaojia said that Hong Kongs local economy has been hit hard, and it is expected that the economy will shrink by about 6% - 8% this year. However, Hong Kongs financial market is the only excellent student in Hong Kong. The market is very strong, the transaction is very strong, and the indicators are extremely resilient. In particular, the IPO of China capital stock, the large-scale listing of Chinese technology enterprises and new economy enterprises have been completely reformed It has changed Hong Kongs financial market.

With his own efforts, Li Xiaojia has won an era for Hong Kongs capital market. As Lin zhengyuee said, Charles is eloquent, persuasive and funny. He is a rare financial ambassador