The move represents the first-ever equity investment in a mainland futures exchange by a non-mainland investor, and will help HKEX promote green and low-carbon markets across the region.
8 Feb 2021 – Ping An Insurance Group and China’s four other futures exchanges will each own a 15% stake in the Guangzhou Futures Exchange.
HKEX (Hong Kong Exchanges and Clearing) has announced that it is buying a 7 percent minority stake in the newly-established Guangzhou Futures Exchange for CNY 210 million, a move that represents the first-ever equity investment in a mainland futures exchange by a non-mainland investor.
The CSRC (China Securities Regulatory Commission) officially approved the establishment of the Guangzhou Futures Exchange in January, making it the first futures exchange to open in China in 14 years. The establishment of the Guangzhou Futures Exchange is part of a policy blueprint for the development of financial markets in the Greater Bay Area, released by mainland authorities last year.
“We are very excited to be a part of this important initiative to develop the Guangzhou Futures Exchange,” said HKEX Interim Chief Executive Calvin Tai. “This investment supports our China Anchored strategy, providing HKEX with the valuable opportunity to help build and promote the development of China’s derivatives market, alongside our Mainland partners.”
China Anchored is one of the three pillars of HKEX’s current Strategic Plan, which seeks to promote the sustainable internationalisation of China’s capital markets and facilitate the allocation of assets to Chinese and international investors through two-way investment channels.
Tai said HKEX will extend its promotion of green and low-carbon markets through the commercialisation and international development of the Guangzhou Futures Exchange in the region. The new exchange is understood to be working on plans to begin carbon emissions trading trials once it is established.
The Guangzhou Futures Exchange will be set up with a registered capital of CNY 3 billion yuan, Caixin reported.
Besides HKEX, the other shareholders Ping An Insurance Group with a 15 percent stake, a private Guangzhou company with a 9 percent stake, and a local company owned by the Guangzhou government with a 9 percent stake.
The other shareholders will be China’s four other futures exchanges — the SHFE (Shanghai Futures Exchange), ZCE (Zhengzhou Commodity Exchange), DCE (Dalian Commodity Exchange) and CFFEX (China Financial Futures Exchange) — each with a 15 percent stake.