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.

Some people have commented that although Li Xiaojias contribution to the Hong Kong Stock Exchange and Hong Kong stock exchange is not unknown, it must be unprecedented.

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.

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

Li Xiaojia served as an oil worker and journalist when he was young, and then went abroad for further study. He worked all the way from lawyer to President of Bank of America Merrill Lynch in China and chairman of JPMorgan Chase in China, and then returned home for development. He participated in the historical process of Chinas financial opening up.

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.

Li Xiaojias global vision makes him understand that the future of HKEx depends on the mainland. After taking office, Li Xiaojia began to carry out drastic reform. Firstly, he published the strategic plan of the Hong Kong stock exchange from 2010 to 2012, clearly positioning the HKEx as a global exchange committed to becoming a domestic customer going to the world and international customers entering the mainland of China, and then cooperating with the opening-up strategy of the mainland 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.

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.

However, when Hong Kong was just opened up, it was not the basis for Hong Kong to connect with the mainland. On the first day of the opening of the Shanghai Hong Kong stock connect on November 17, 2014, the Hang Seng Index fell instead of rising, closing at 23797.08, down 1.21%. The amount of funds in the North was used up, but the funds in the South were cold, only 17% of the total amount was used up.

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.

According to the latest data, since its opening, the southward capital of the Hong Kong stock connect has reached HK $1528.939 billion, with the highest transaction volume of HK $46.4 billion in a single day. The mainland has also attracted RMB 1087.218 billion of foreign capital through the Shanghai Shenzhen Hong Kong stock connect. The interconnection mechanism has stimulated the active trading in the two markets.

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.

In June 2012, Alibaba, a listed company with 2B business as the main body, delisted from the Hong Kong stock exchange to seek an overall IPO of the group. However, due to the problem of different rights for the same share, Alibaba officially landed on the New York Stock Exchange in September 2014, and the Hong Kong Stock Exchange missed it.

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.

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.

On November 26, 2019, Alibaba scenery returned to the Hong Kong stock exchange. In June 2020, Netease and Jingdong returned to the Hong Kong stock exchange, and the rumors of ant financial services going to Hong Kong for listing finally came true. It is obvious that the Internet giant has become the leading role of the Hong Kong stock exchange today. It is said that there are also Baidu, Ctrip, pinduoduo and so on. If this wave of technology companies are back, then HKEx hopes to become the real Chinese version of NASDAQ.

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

In an interview with the Securities Times reporter, Li Xiaojia previously said, with the further return of China capital stock, we need such fresh blood. All market rumors you see will eventually come to Hong Kong for listing. It is only a matter of time before they come to Hong Kong to issue shares, and now the institutional obstacles have been removed.

New economy enterprises transform Hong Kongs financial market

According to wind data, except for AIA, the top 10 Hong Kong stocks on September 30 were all Chinese stocks. The top five daily turnover were Alibaba, with a turnover of HK $9.67 billion; Tencent holdings, HK $5.26 billion; meituan review, HK $3.234 billion; Ping An Hao doctor, HK $2.566 billion; and BYD, HK $2.13 billion. Since September, all of the top five enterprises with average daily turnover have been new economy enterprises.

Two years ago, banking and financial stocks still accounted for half of Hong Kongs top five active stocks or top ten active stocks.

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.

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.

Li Xiaojia added that the outstanding performance of Hong Kongs financial market can be attributed to the bad remedy made in the past few years. The interconnection mechanism is a large-scale transaction every day, which is an irreversible huge change and has produced a large number of chemical reactions. In the past, our pools were basically old fish, and the traditional fish were basically grass carp. Now we have a lot of new sea fish and new salmon Todays Hong Kong market is completely different from that in the past.

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