The Hong Kong stock exchange
(HKEx) is to
refocus on commodities as opportunities slow in the
equities market. But market participants are questioning the
rationale behind the move.
HKEx chief executive, Charles
Li, said Thursday the time had come for the bourse to move away
from stock and initial public offerings (IPOs) in order to
exploit China's growing demand for commodities.
As a country dominating
commodities consumption and production and with no say in
determining product prices, the opportunities in China are
huge, he said. He added that the HKEx is uniquely positioned to
capitalise on that.
commodities, for example, would allow investors to trade and
hedge their risk in renminbi and commodities in an Asian time
zone, he said. "If we don’t move to fill that gap
soon somebody else will and Hong Kong is forever left out."
But the former Hong Kong Clearing and