China Fund News reporter Guo Minjun
On 24 April, Hong Kong Exchanges and Clearing Limited ("HKEX") announced its first quarter 2024 results and announced the appointment of Mr Carlson Tong to succeed the recently retired Ms Laura Cha as Chairman of the Board of Directors of HKEX. Profit attributable to shareholders decreased by 13% year-on-year to HK$2.970 billion
According to the first quarterly report of the Hong Kong Stock Exchange, the company's revenue and other income in the first quarter of 2024 was HK$5.201 billion, down 6% year-on-year and up 7% quarter-on-quarter. Profit attributable to shareholders was HK$2,970 million, down 13% year-on-year and up 14% quarter-on-quarter. The average daily turnover was 99.4 billion yuan, down 22% month-on-month. Basic earnings per share was HK$2.35, down 13% from the first quarter of 2023.
A number of connected products have reached new highs
According to HKEX's first quarterly report, Stock Connect operated smoothly in the first quarter of 2024, with an average daily turnover of RMB133 billion and HK$31 billion for Northbound and Southbound trading respectively. Since March 2023, more than 1,000 new stocks have been added to Northbound trading, resulting in a 37% year-on-year increase in the average daily turnover of Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect.
As of 31 March 2024, 8 ETFs were included in Stock Connect for Southbound and 141 ETFs for Northbound trading. In Q1 2024, the average daily turnover of Southbound ETFs was HK$1.7 billion, and the average daily turnover of Northbound ETFs was RMB1.1 billion, a quarterly high, and a record daily high of RMB3.2 billion on 7 February 2024.
In the first quarter of 2024, the trading volume of Bond Connect Northbound Trading continued to show an overall upward trend, with the average daily turnover reaching a quarterly high of RMB45.2 billion, up 22% year-on-year. In addition, the average daily turnover in January 2024 hit a new monthly high of RMB48.7 billion, and the net inflow also hit a new monthly high of RMB141.7 billion.
Chan Yiting: Investor confidence has recovered
HKEX Chief Executive Tim Chan said: "HKEX has demonstrated strength and resilience in Q1 2024. Despite the weak global macro environment, the Group's derivatives and commodities business continued to perform strongly, with the trading volume of derivatives reaching a new quarterly high. Although the equity market continued to weaken due to macro market sentiment, the average daily turnover in March and April this year has rebounded significantly, indicating a recovery in investor confidence. The trading volume of Stock Connect continued to rise, with significant increases in trading volume under Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect and Bond Connect, with Bond Connect reaching a new quarterly high. ”
"The China Securities Regulatory Commission (CSRC) has recently announced a number of measures to support the development of Hong Kong's capital market, including expanding the scope of eligible ETFs under Stock Connect, including REITs in Stock Connect, supporting the inclusion of RMB stock trading counters in Hong Kong Stock Connect, and supporting the listing of leading enterprises in mainland industries in Hong Kong, which will further enhance the attractiveness of Hong Kong's capital market," she said. Looking ahead, despite the challenging environment, we remain optimistic about the long-term growth trend of China's economy and the opportunities that can be brought by expanding our connections with capital markets in Southeast Asia and the Middle East, and we will leverage technology to enhance market vitality. ”
Mr. Tang is the Chairman of the Board
On 24 April, HKEX announced the appointment of Mr Carlson Tong as Chairman of the Board of Directors (the "Chairman"), succeeding Ms Laura Cha, who stepped down at the conclusion of HKEX's 2024 Annual General Meeting to be held on the same day.
In accordance with the Articles of Association of HKEX and the Securities and Futures Ordinance, the appointment of the Tang family as Chairman is subject to the written approval of the Chief Executive of the Hong Kong Special Administrative Region. HKEX will make a separate announcement after obtaining the relevant approvals.
According to the Hong Kong Stock Exchange, Mr Tong is also currently an independent non-executive director of MTR Corporation Limited, Hong Kong Investment Corporation Limited and Standard Chartered Group Limited.
He was Chairman of KPMG China and Hong Kong from 2007 to 2011 and became Chairman of KPMG Asia Pacific and a member of the KPMG Global Board in 2009.
Mr Tong has been actively involved in capital markets throughout his career and has extensive experience in corporate governance and regulatory compliance. He was a member of the Main Board and GEM Listing Committees of The Stock Exchange of Hong Kong Limited from 2002 to 2006 and Chairman from 2006 to 2008.
From 2012 to 2018, Mr Tong was appointed Chairman of the Securities and Futures Commission, where he oversaw a number of important policy initiatives, including the introduction of the Stock Connect scheme and the Mutual Recognition of Funds arrangement between Chinese mainland and Hong Kong.
Over the years, Mr Tong has been an enthusiastic member of the community service, particularly in education and youth affairs in Hong Kong, and has served as Chairman of the English Schools Foundation, the Hong Kong Sports Institute and the University Grants Committee.
Mr Tong is a fellow member of the Institute of Chartered Accountants in England and Wales and the Hong Kong Institute of Certified Public Accountants respectively, and was awarded the Certificate of Excellence by the Institute of Chartered Accountants in England and Wales in 2022. He was conferred an Honorary Doctor of Business Administration by the Hong Kong University of Science and Technology and an Honorary Doctor of Social Sciences by The Education University of Hong Kong.
Mr Tong was also awarded the Silver Bauhinia Star and the Gold Bauhinia Star by the Government of the Hong Kong Special Administrative Region in 2014 and 2019 respectively.
Based on the following current remuneration for non-executive directors serving on the Board and certain Board committees (if applicable), Tong Ka Shing will receive a total of HK$455,000 for the year 2024/2025 for his director's emoluments (i.e. remuneration for directors' work for the Company, including salaries, commissions, bonuses, travel expenses, etc.) for his position as Chairman of the Board and other Board Committees.
In addition, Mr Tong was appointed as a Director of HKEX Investment (UK) Limited, a wholly-owned subsidiary of HKEX, on 6 March 2024 for an initial period of two years. According to the letter of appointment, he was entitled to receive £20,000 per annum as an honorarium.
Laura Cha was appointed as a senior advisor to the Board of Directors after his retirement
Ms. Laura Cha officially retired from her position on April 24 after presiding over the 2024 Annual General Meeting (AGM) in her capacity as Chairman of the Board for the last time.
HKEX announced that in view of Ms Laura Cha's extensive experience and knowledge of the global financial industry and the financial markets in Chinese mainland, the Board is pleased to announce the appointment of Ms Laura Cha as a Senior Advisor to the Board for the period from 25 April 2024 to 24 April 2025. Ms Sze will continue to serve as Chair of HKEX's International Advisory Committee and China Advisory Committee.
In response to a question from a reporter from China Fund News after the annual general meeting, Laura Cha said that her most impressive work in promoting the integrated development of the mainland and Hong Kong was the introduction of state-owned enterprises to Hong Kong for listing 30 years ago. "It was a very innovative attempt at the time," she said. At that time, I had no idea that 30 years later, mainland enterprises would play such an important role in the Hong Kong market. The listing of state-owned enterprises in that year laid a good foundation for the subsequent interconnection between the mainland and Hong Kong, including the Stock Connect. ”
The list of new directors and their functions are determined
On 24 April, HKEX also announced the list of new directors and their roles and functions.
In addition to Tong, on 24 April, HKEX appointed Nicholas Nair, Bayabo, Chan Kin Po, Tse Ching Hoi, Cheung Mingming, Chow Hu Mufang, Leung Wing-yu, Leung Pak Han, Yam Chi-Kong, Yam King-shun and Cheung Yi-chen as Independent Non-Executive Directors, and Chan Yee Ting as Executive Director and Group Chief Executive Officer.
The table below shows the positions held by each Director on the nine committees of HKEX.
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