Hong Kong Exchanges and Clearing (0388) is considering extending chief executive Nicolas Aguzin's contract until May 2025 after a tenure marked by challenges for the bourse, according to people familiar with the matter.
The board is seeking to avoid changing chairman and chief executive in the same year, the people said.
Aguzin's current three-year contract ends in May, one month after chairman Laura Cha Shih May-lung's appointment expires in April. A usual chief executive contract runs for three years.
HKEX still needs to seek approval from the government and the Securities and Futures Commission on the appointment.
Aguzin, a former JP Morgan executive, has been dogged by challenges since he took the job. Up until a rebound late last year, he presided over six consecutive quarterly declines in profit as global economic concerns, Covid curbs, and a crackdown on private enterprise in China triggered drops in trading volumes and initial public offerings. At the same time, investors are flocking to markets such as India and Japan.
Both the main revenue drivers of HKEX - cash trading and IPOs - dried up in 2023. The government had to step in and cut stamp duty in a bid to revive the market, at a cost of HK$14 billion annually.
Separately, HKEX and the Qingdao government in China's Shandong province have signed a memorandum of understanding to support Qingdao-based companies in seeking a listing in the city.
Nicolas Aguzin’s contract ends next May. SING TAO
