Strategic Plan 2016-2018 for Hong Kong Exchanges and Clearing Limited

On 21 January 2016, Hong Kong Exchanges and Clearing Limited (HKEX) announced its Strategic Plan 2016-2018. It outlined the development roadmap for HKEX and Hong Kong's financial markets. HKEX's strategic goals for the three-year period are to extend and increase the value proposition for China and the world financial markets towards their mutual integration.

Two principal theme frameworks are to build the most effective platform for cross-border market access and to develop a unique destination market in Hong Kong for products with both Chinese and international relevance.

The strategic plan features all three of the asset classes, comprising equity, commodities and fixed Income and Currency (FIC).

For equity, HKEX aims to grow and strengthen the core franchise as a compelling listing and fundraising venue; significantly expand mutual connectivity to extend Shanghai-Hong Kong Stock Connect, launch ShenzhenHong Kong Stock Connect and launch “Primary Equity Connect”; to launch new derivatives products on Mainland, Hong Kong and international underlying assets.

For commodities, it targets to expand the suite of products both on the London Metal Exchange (LME) and in Hong Kong into adjacent commodities; to build a convenient channel for Asian liquidity to access the LME market and products, as a way to further financialise the LME; to develop a spot commodities trading platform in the Mainland market in order to service the real economy, with a view to producing and internationalising ‘Chinese benchmarks’ as well as physicalising the Mainland commodities market using the LME model; to pursue cross-border connectivity with Mainland commodities exchanges and products.

For fixed income and currency, HKEX hopes to launch new exchange-traded derivatives in Hong Kong on RMB and onshore interest rates; to offer a broader product suite in OTC Clear, delivering tangible benefits to market users; to explore mutual market access with the Mainland in the institutional cash bond market through a “Bond Connect” scheme.

For details, please refer to http://www.hkex.com.hk/.