Immigrate to Hong Kong focuses on Hong Kong's immigration economy: According to media reports, Charles Li, the Chief Executive of Hong Kong Exchanges and Clearing Limited (HKEX), recently stated that he is studying the launch of the "London-Hong Kong Connect" as a significant part of Hong Kong's connectivity. He hopes that the "London-Hong Kong Connect" will ultimately enable Hong Kong to become a futures trading center.
Charles Li believes that there are three main differences between the "London-Hong Kong Connect" and the "Shanghai-Hong Kong Connect": the "Shanghai-Hong Kong Connect" pertains to the spot market, while the "London-Hong Kong Connect" pertains to the futures market. Secondly, the "Shanghai-Hong Kong Connect" primarily focuses on mainland traffic, while the "London-Hong Kong Connect" centers on Hong Kong, adopting Hong Kong time and settlement measures. Finally, the "Shanghai-Hong Kong Connect" mainly involves existing product markets, while the "London-Hong Kong Connect" will introduce new products. He pointed out that the development of new products in Hong Kong has been slow, but after acquiring the London Metal Exchange (LME), there is no reason not to bring related products to Hong Kong.
Charles Li stated that the "London-Hong Kong Connect" is an important strategy and a significant part of "connectivity". He believes that now is the appropriate time to introduce it, and indicated that the "London-Hong Kong Connect" will first open "westward" and later "eastward". The market believes that the connectivity of the commodity market will cover the mainland.
Charles Li believes that the mainland market is currently in a period of recuperation, but there is still strong demand for high-risk products, such as futures and investments in international markets. He believes that the launch of the "London-Hong Kong Connect" can bring new traffic and new development opportunities.
Regarding regulatory aspects, Charles Li stated that the "London-Hong Kong Connect" needs to be approved by Hong Kong, London, and the European Union, with the approval time from the European Union being difficult to estimate, likely taking at least six months. He hopes that the progress will be faster than expected. In terms of trading thresholds, he indicated that it will follow local rules and practices, similar to the "Shanghai-Hong Kong Connect", and currently, the "Shanghai-Hong Kong Connect" has many individual investors in addition to corporate investors, and the "London-Hong Kong Connect" will not be limited to corporate investments.
Charles Li believes that there are still many investors who have not participated in the futures market, and once the "London-Hong Kong Connect" is launched, it can attract this group of clients, leading to an increase in related traffic.