15 September 2019
Singapore Exchange hopes to lure more Chinese clients with an office in Hong Kong. Photo: Bloomberg
Singapore Exchange hopes to lure more Chinese clients with an office in Hong Kong. Photo: Bloomberg

SGX to ratchet up competition with Hong Kong bourse

Singapore Exchange Ltd. (SGX) will step up competition with Hong Kong Exchanges and Clearing Ltd. (00388.HK) by formally opening an office in Hong Kong next week.

Sutat Chew, executive vice-president and head of sales and clients at the Singaporean bourse, will lead a delegation to officiate the opening ceremony of the new office, the Hong Kong Economic Journal reported Friday.

The Hong Kong office, which informally commenced operation since the beginning of this year, will soon expand its team. It currently has three staff members, including Ringo Chiu, who had once served as the chief information officer at Hong Kong’s Securities and Futures Commission.

Chiu, who joined the Singapore Exchange’s Hong Kong office in June from CITIC Securities International Co. where he worked for five years as chief operating officer, will lead the Hong Kong sales team in recruiting locally registered brokerages to participate in the derivatives market operated by SGX.

Some local players such as Emperor Capital Group, Marigold International Securities, Quam Capital Group, and Haitong International Securities Group (00665.HK) have become new participants at Singapore Exchange over the past three months, mirroring the bourse’s ambition to forge ties with brokerages serving clients in both Hong Kong and mainland China.

Futures markets are expected to be a key battlefield as many Hong Kong investors tend to carry out pair trades with Singapore-listed FTSE China A50 Index Futures (HN.SGX) and Hong Kong-listed iShares FTSE A50 China Index ETF (02823.HK).

Singapore Exchange announced in March that it will launch in the third quarter this year futures contracts that trade Asian currencies including China’s renminbi.

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