NZX seeks closer ties with Hong Kong Exchange with memorandum of understanding

Wednesday 31st January 2018

NZX has signed a memorandum of understanding with Hong Kong Exchanges and Clearing to investigate broader regional product development, and both have one eye firmly on green finance and sustainability initiatives.

The Wellington-based stock market operator and its Hong Kong counterpart want to promote market development in a range of areas including foreign investment, derivatives, depositary receipts, listed debt, dual listings, and exchange-traded funds, NZX said in a statement. The companies will also share information for green finance and offer staff secondments to bolster their understanding of each other's market.

"This supports the New Zealand exchange’s commitment to increase its international presence as outlined in NZX’s recently released strategy," NZX chair James Miller said. "It highlights NZX’s desire to expand the reach and connection of the New Zealand market."

The deal follows soundings from New Zealand's stock market operator that it needed to make it easier for overseas companies to join NZX as a secondary listing among a handful of proposals to refocus the firm on driving shareholder value and reinvigorating the local capital market.

The tie-up on green finance also hits one of NZX's goals to leverage a growing drive for sustainability with the establishment of a green bond market.

Hong Kong exchange chair CK Chow said the memo was the first step in building a partnership to extend his bourse's reach in the Asia Pacific region and meets its target "to deepen our leadership role in connecting Chinese and international investors, issuers and products".

NZX shares fell 1.8 percent to $1.11, having increased 2.8 percent over the past 12 months.

(BusinessDesk)

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