HKeX: MSCI consultation may lead to index deal
HONG KONG: Hong Kong Stock Exchange (HKeX) chief executive officer Charles Li said a new consultation process initiated by global index provider MSCI suggested a compromise or interim solution to a lengthy wrangle to get Mainland China shares included in its emerging markets index could be found.
“You don’t really want to do that unless you’ve decided there is a greater likelihood of some kind of action,” he said at the annual Credit Suisse Asian Investment Conference, here, yesterday.
While MSCI did not include mainland shares in its widely tracked emerging markets index for the third year running last year, market watchers are slightly more optimistic about a favourable outcome this year.
Li said he would consult market participants on whether or not to launch weighted voting rights, which offered voting characteristics tailored to different classes of shares.
He said the HKeX was years away from implementing a mainland-style “identity trading” system, in which the beneficial owner of shares traded on the exchange had to be known to or identifiable by the exchange, unlike the current system where investors could remain anonymous via nominee accounts held for them by others.
Hong Kong brokers currently provide information on client activity only when requested by authorities. Reuters