Exchange looks to upgrade to exploit resources

Updated: 2012-01-20 10:26

(China Daily)

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HONG KONG - Hong Kong Exchanges and Clearing Ltd (HKEx), among the world's largest bourse operators, said on Thursday that it planned to ramp up spending to upgrade infrastructure in the commodities space and confirmed its commitment to deeper ties with its mainland peers.

HKEx said capital expenditure this year would be about HK$2 billion ($257.70 million), although it later clarified that this would be spread over a number of years, expanding into areas such as commodities and fixed income.

"We are coming to a moment when the mainland will become so international, but are frustrated that they cannot manage the commodities sector on their terms," HKEx Chief Executive Charles Li told a news briefing in Hong Kong.

"If we can tap into this, we can grow into it."

He reiterated plans to set up a joint venture with bourses in Shanghai and Shenzhen this year for trading futures products with underlying assets in the mainland.

HKEx said in August that it was in talks with peers in Shanghai and Shenzhen on a joint venture for equity derivatives and index compilations, a move that would represent the first concrete link between the three exchanges focused on China's vast economy.

Last year, the mainland's IPO market, worth 286 billion yuan ($45.31 billion), was the biggest in the world. Hong Kong's IPO market raised 220.7 billion yuan during the same period, while the US market was worth 224.3 billion yuan, according to the accounting firm PricewaterhouseCoopers LLP.