HKeX: MSCI con­sul­ta­tion may lead to in­dex deal

New Straits Times - - Business World -

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

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