Hong Kong Exchanges’ non-equity push seen as key for stock boost
Fixed‑income related revenues are expected to become a new growth curve for the bourse operator
Hong Kong Exchanges & Clearing (HKEX) is seeking growth outside of equity trading as its core operations show limited progress. Industry analysts are anticipating a significant boost from the company's shift towards non-equity ventures, including fixed-income and currency trading. HKEX's expansion in these areas comes amidst regulatory concerns and scrutiny over new stock listings.
The bourse operator's foray into China offshore government bond futures and a joint fixed-income and currency trading platform with China Foreign Exchange Trade System (CFETS) are seen as key drivers for future growth. Analysts anticipate that fixed-income related revenues will become a new growth curve for HKEX, providing diversification of income streams and protection against market cycles.
Despite these strategic moves, HKEX shares have underperformed since 2022, trailing global peers and experiencing a 14% decline over the past five years.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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