Hong Kong stock operator HKEX chooses former securities watchdog chief Carlson Tong as chairman

Although some external factors like geopolitics and interest rates are beyond our direct control, we must be proactive and prepare to seize opportunities when the external environment improves.

At the same time, we will focus on diversifying our product lines, improving our business mechanisms and strengthening our competitiveness. By addressing immediate challenges and positioning ourselves for long-term opportunities, we will fulfill HKEX's obligations to the investing public while delivering value to its shareholders.

Tong will receive director fees of HK$4.55 million (US$583,333) annually, according to a stock exchange filing. His term of office runs until his term as director ends at the HKEX annual general meeting in 2025, when he could be reappointed.

In his latest press briefing with HKEX, which followed the annual general meeting of exchange operators, Cha said turnover and IPO applications have improved in recent months.

I am positive about the prospects of HKEX, which will benefit from the improving economy, she said. The stock exchange will continue its internationalization process to strengthen its role as a connector between the continent [Chinese] capital markets and the world.

Cha said she was proud of her involvement in opening overseas offices for HKEX in London and New York during her tenure, adding that she was stepping back from her frontline role after working in the capital markets for over 30 years.

The board appointed Cha as senior advisor for one year.

Tong will work closely with recently appointed CEO Bonnie Chan Yiting to lead HKEX at a time when it is grappling with challenges such as low liquidity and a decline in new listings.

Hong Kong's stock exchange fell to 10th in the world for new listings in the first quarter, with just 12 deals raising $604.4 million, a 29 percent drop year-on-year, according to London Stock Exchange data. Group. It was the highest ranked venue in the world seven times between 2009 and 2019.

Tong, 69, served as chairman of the SFC from 2012 to 2018. Before that, he was chairman of KPMG China from 2007 to 2011 and also headed the HKEX listing committee from 2006 to 2008.

During Tong's tenure, the SFC strengthened market supervision, imposing nearly HK$4 billion in fines and compensation in several high-profile cases of insider trading, false disclosures, failure of internal controls, mis-selling and other wrongdoing.

HKEX's profit decreases by 13% due to lower turnover and fewer listings.

[Tongs] Immense knowledge and experience in the operation of the financial market and the regulation of securities-related activities will help HKEX further strengthen its competitiveness and expand its business, Chan said when appointing Tong to the HKEX board of directors in February 2023.

HKEX has 13 directors, including CEO Bonnie Chan, six appointed by the government and the rest by shareholders.

Frederick Ma Si-hang, chairman of Hong Kong insurer FWD Group Holdings, said Tong was a good choice. Ma worked with Tong when he was chairman of the list committee and Ma was secretary of financial services and treasury.

Carlson is the ideal person to serve as HKEX Chairman as he has deep and valuable strategic knowledge of capital markets, said Ma. His remarkable background, exceptional leadership and excellent communication skills with all stakeholders will lead the HKEX to develop further in the years to come.

Accounting and Financial Reporting Board chairman Kelvin Wong Tin-yau, who served as an independent director of the SFC from 2012 to 2018 when Tong was chairman of the market regulator, also expressed his approval.

Carlson is a well-respected chair to work with, as he always prepared the agenda well and actively engaged with members to ensure that different viewpoints were understood and discussed, Wong said.

We need to diversify, says outgoing HKEX president who has made globalization her goal

He is an open-minded and very diligent president, able to get the board to focus on the big picture. He showed his charismatic ability to achieve consensus among members with diverse opinions.

Local brokerages said Tong's leadership was indispensable in a difficult time.

It's great to have [Tong] who has extensive experience in the local capital market to chair HKEX, said Robert Lee Wai-wang, a lawmaker representing the local financial services industry.

We would like to see the new president undertake more reforms to improve market turnover and expand the global status of the stock market in the coming years.