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Hong Kong Market, IPOs Hurt by Geopolitics, Bourse CEO Says

China-US tensions, the war in Ukraine, plus the tightened regulatory environment and inflation concerns have weighed heavily on markets, HKEX CEO Nicolas Aguzin said

The threat of delisting Chinese stocks from major US exchanges could be a bonanza for the Hong Kong Stock Exchange, if more firms follow Alibaba and do a dual primary listing in the city.
HKEX chief executive Nicolas Aguzin has had a mediocre start to the year but the second half could be very different. Photo: HKEX.


A “fragile” geopolitical environment has slowed trading volumes and initial public offerings on the Hong Kong stock exchange and created challenges for its commodities business, especially nickel, the bourse’s CEO said on Tuesday.

China-US tensions, exacerbated by the Russia-Ukraine conflict, questions around the tightening regulatory environment for tech and platform companies and concerns about persistent global inflation have “weighed heavily on our markets”, Nicolas Aguzin, chief executive of Hong Kong Exchanges and Clearing, said.

“We’re keenly aware that our commodity business, especially nickel has been facing some challenges after the Russia-Ukraine crisis,” Aguzin said, at an event setting out HKEX’s corporate strategy for the coming years.

HKEX’s London Metals Exchange subsidiary suspended activity and cancelled nickel trades earlier this month due to volatility that saw prices double to more than $100,000 a tonne within hours. A spate of technical glitches after trading resumed left traders fuming.

At Tuesday’s event Aguzin reiterated that HKEX’s strategy is to focus its attention on connecting Chinese and global capital markets, and said the bourse was working on a series of initiatives to enhance the vibrancy of its markets.

He also acknowledged that the number of people leaving Hong Kong was affecting the city’s financial market.

“We’re seeing limited inflows of talent and an increasing number of individuals leaving the city which has resulted in a talent war in the financial industry,” he said.

Hong Kong has recently begun easing stringent anti-Covid measures, which business lobby groups warned were undermining the business environment in the financial hub and causing an exodus of professionals.

Restrictions on daily life and quarantine for inbound travellers remain in place, however.


  • Reuters with additional editing by Jim Pollard




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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.


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