HKEx (0388) chief executive Charles Li Xiaojia said he has no timetable yet for the implementation of the Shenzhen- Hong Kong stock connect.
Details of the connect launch date are to be announced by both parties at a later date, he said. He added the local exchange is prepared and ready for the launch while mainland authorities still need another three to four months to put in place the technical infrastructure.
Speaking at a public forum yesterday, he also warned that the decline in the volume of turnover on the local bourse will result in a lower income for HKEx this year.
He also said that future focus will be on improving southbound trading, which means bringing more mainland investments to Hong Kong and boosting Hongkongers' investments in initial public offerings in Shanghai, and vice versa.
He admitted that southbound trading was not performing as well as expected as many Chinese investors are still unfamiliar with the Hong Kong market as they have different investment methods. However, with the continuing lack of high-quality investment products in the mainland, more Chinese funds will come to Hong Kong and HKEx can help Chinese funds to enter the world market, he said. He added that the goal is to internationalize HKEx.
The merger deal between the London Stock Exchange and Deutsche Boerse will have a big impact on the European market, but only a limited effect on the local bourse, Li said.