HKEX Chief Charles Li To Step Down

Charles Li is to step down as chief executive of Hong Kong Stock Exchanges and Clearing (HKEX) after more than 10 years.

HKEX said Li had informed the board of his intention not to seek reappointment at the end of his current contract which will expire in October next year.

A selection committee has been formed to find a replacement, led by chairwoman Laura Cha.

This comes as HKEX posted a 13 percent fall in first-quarter profit to more than HK$2.2 billion.

Revenue dropped 7 percent to just over HK$4 billion from the same period, last year despite a rise in trading volume.

The profit line was hurt by a 6 percent rise in operating costs and HKEX also suffered a HK$47 million investment loss.

“Despite one of the most volatile and uncertain periods in recent times, HKEX core businesses in cash, derivatives and commodities have had a good quarter, reflecting record Stock Connect and Bond Connect quarterly volumes and 39 new company listings, ranking HKEX first in the world for number of IPOs in Q1 2020”, Li said.

Appointed in January 2010, Li led HKEX to acquire the London Metal Exchange in 2012 – the bourse’s first overseas buyout.

Under his leadership, mainland tech companies have been allowed to list on the Hong Kong stock market under weighted voting rights structures.

But his ambitious bid to take over the London Stock Exchange last year was much criticised and HKEX dropped the attempt.

Financial Secretary Paul Chan released a statement thanking Li for his “exemplary contribution to the development of our financial market during his tenure as Chief Executive of HKEX in the past decade.”

"Thanks to his vision and leadership, Mr Li has laid a solid and strong foundation for our stock market, rendering Hong Kong the largest IPO market in the world for seven times in the past 11 years”, Chan said.

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