Editor's Note: This article comes fromInterchain Pulse (ID: HiveEcon), Author: Yuan Shang, reproduced by Odaily with authorization.
Editor's Note: This article comes from
Interchain Pulse (ID: HiveEcon)
Interchain Pulse (ID: HiveEcon)
On May 7, Hong Kong Exchanges and Clearing Limited Group (hereinafter referred to as "HKEx") released a major news: CEO Li Xiaojia notified the board of directors that when the current contract expires at the end of October 2021, it will not renew the contract. Renewal of the contract of the Group Chief Executive Officer.
During Li Xiaojia's 10 years in office, he promoted a number of major initiatives in the history of the Hong Kong Stock Exchange, including the acquisition of the world's largest metal pricing center, the London Metal Exchange (LME) in 2012, the establishment of an OTC clearing company in 2013, and the launch of the " Shanghai-Hong Kong Stock Connect”, “Shenzhen-Hong Kong Stock Connect” launched in 2016, and “Bond Connect” launched in 2017.
However, in the past two years, Li Xiaojia has pushed the Hong Kong Stock Exchange to launch "digital asset" transactions, but there has been no substantial progress. Whether this innovative business can continue to advance after he leaves office remains uncertain.
"I hope that Hong Kong can catch up with the bus of the digital asset trading center and not be pulled down." Chen Jiahao, a Hong Kong financial expert and chairman of the FinTech Committee of the Hong Kong Smart City Alliance, told Interchain Pulse.
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Li Xiaojia's digital asset trading dream
During the 10 years since Li Xiaojia took office in 2009 to 2019, he faced such a big environment: the seats on global capital market exchanges have been scheduled. In front of the Hong Kong Stock Exchange are the New York Stock Exchange, Nasdaq, and Tokyo Stock Exchange. The only variable comes from mainland China's Shanghai and Shenzhen exchanges, which are still booming. As of the end of 2019, the market value of the Hong Kong Stock Exchange has been surpassed by the Shanghai Stock Exchange.
Li Xiaojia has his own theory on how the exchange develops, that is, the ternary relationship of "money", "goods" and "market". The strategy of HKEx is formulated around the three core elements of money (funds), goods (products), and market (functions).
Li Xiaojia once said that the three elements of "money", "goods" and "market" are interdependent and interact, and their relationship is a bit like the relationship between chicken and egg: only when there are goods can money come, but goods must be attracted. There must also be enough money; sometimes the goods come first, and sometimes the money comes first; only a good market can attract money and goods, and more money and goods can greatly improve the function of the market.
Endogenous growth is what HKEx needs to face. What kind of "goods" can bring money? The beginning of 2018 coincided with a boom in cryptocurrency trading. I don’t know if this inspired Li Xiaojia, he saw the value of data as an asset.
In November 2018, when he attended a forum in Singapore, he said that he hoped to see Hong Kong become the world's first exchange within five years, trading through data or information closer to the real economy. In December of the same year, when he attended another forum in Hong Kong, he also stated that the firm was exploring the possibility of using data as assets and setting up a data exchange, which would become a new trading model or investment indicator, but due to privacy and confidentiality To solve the problem, we should consider the way to deal with it, and also study whether there are other alternatives.
At the beginning of 2019, the Hong Kong Stock Exchange wrote Li Xiaojia's thoughts on data as an asset transaction into the "Strategic Plan 2019-2021". When interpreting this strategic plan, Li Xiaojia said: "Big data (especially medical research, Big data on consumption habits, etc.) has the potential to become a new asset class in the financial market. Through the trading and sharing of big data, human beings can carry out technological revolution faster and better to promote social progress. This is the development of the exchange Provides brand-new opportunities. As a central market operator, Hong Kong Stock Exchange has inherent advantages in the encryption, confirmation and settlement of big data by virtue of the credibility endowed by regulators and the market. It is entirely possible to promote the introduction of big data in the financial market. The historical process of an asset class. Although it may not require a large financial investment in this regard, launching a new market operation model will definitely be full of challenges. At present, this strategy is still in the early stage of exploration, but we are interested in this direction Be confident."
After that, Li Xiaojia repeatedly cheered for the Hong Kong Stock Exchange to carry out data asset transactions. The most recent one was on April 20 this year, when Li Xiaojia proposed and called on all sectors of the industry to join forces to establish a cross-market, cross-field, and interdisciplinary "data element industrialization alliance".
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In fact, the asset class of digital or data has been recognized by securities traders in many countries around the world. ICE DATA, the parent company of the New York Stock Exchange (ICE DATA), operates 23 global exchanges including the New York Stock Exchange (NYSE), and launched services related to digital asset transactions earlier in the world, and in 2018 The company that founded Bakkt specializes in digital asset trading. In 2019, the London Stock Exchange also established the AAX exchange specializing in digital asset trading.
In addition to these pioneers, some countries also hope not to lag behind others in the wave of digital asset transactions, and even overtake them at corners.
The Monetary Authority of Singapore began to study digital asset transactions in 2015, and this year granted exemptions to some digital asset exchanges; the Central Bank of Lithuania conducts sandbox supervision on digital asset exchanges, and some exchanges are about to graduate.
Figure: Comparison of regulatory measures on digital assets in Hong Kong and Singapore
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(Source: Gao Han, former managing director of HKEx)
Although the Shanghai Stock Exchange and the Shenzhen Stock Exchange have not yet made it clear that they will carry out digital asset trading business. However, on the 7th of this month, Xiao Gang, member of the National Committee of the Chinese People's Political Consultative Conference and former chairman of the China Securities Regulatory Commission, said at the "cloud" symposium on new infrastructure, new layout, and new kinetic energy: "Data is the 'oil' of the digital economy, and digital assets are the foundation of the digital economy." The cornerstone is an important form of interaction between people and things, and things and things. All assets can be digitized and become digital assets.” Xiao Gang analyzed that from a financial point of view, assets can be divided, standardized, and Liquidity, assets flow more easily. More importantly, it has opened up a new field for investment financing and capital value circulation and exchange. It can be seen that the issue of digital asset trading is very close to the decision-making level.
At a time when the world is vying for the strategic heights of digital asset trading, whether Li Xiaojia's resignation next year will affect the promotion of related businesses in Hong Kong Stock Exchange has become a major variable.
"There will definitely be an impact, but I hope that Hong Kong will be more courageous instead of retreating." A senior expert in Hong Kong's financial circles told Hulian Pulse.
At present, there has been no public disclosure as to where the digital assets of the Hong Kong Stock Exchange have advanced. However, Interchain Pulse noticed through Tianyancha that on March 20 this year, a company called "Huakong Qingjiao Information Technology (Beijing) Co., Ltd." had a change in equity, and Shenzhen Gangyi Technology Co., Ltd. became a shareholder of the company. And holds a minority shareholder interest in the company (accounting for 3.03% of the shares), and Gangyi Technology is a wholly-owned subsidiary of the Hong Kong Stock Exchange.
