HKEX and GFEX Sign MOU for Strategic Partnership

Hong Kong Exchanges and Clearing Limited (HKEX) has signed a Memorandum of Understanding (MOU) with the Guangzhou Futures Exchange (GFEX) for strategic cooperation in promoting sustainability and facilitating the development of the Guangdong-Hong Kong-Macao Greater Bay Area.

Under the MOU, HKEX and GFEX will explore the feasibility of cooperation on product development in both onshore and offshore markets, with the aim of supporting China to peak carbon emissions by 2030 and reach carbon neutrality by 2060. Both exchanges will also work together in areas such as clearing, technology, and collaborate on marketing and investor educational efforts.

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HKEX Chief Executive Officer Nicolas Aguzin said: " HKEX is the first offshore institution to have a direct investment in a Mainland derivatives exchange and we are very excited today to be confirming our commitment to work with GFEX in promoting the development of China’s derivatives markets. Reflecting our China Anchored strategy, HKEX will work with GFEX to actively explore new opportunities to drive the development of a green and low-carbon market in the region, and progress innovations to further the opening-up of China’s futures market."

Established on 19 April 2021, GFEX is the fifth futures exchange in mainland China. Based in the Guangdong-Hong Kong-Macao Greater Bay Area, GFEX seeks to become an innovative and market-oriented exchange with international influence, focusing on serving the real economy and green development initiatives. HKEX has invested RMB210 million for a 7 per cent stake in GFEX.

Recently, HKEX announced the launch of its first A-share derivatives product​. This new contract will provide international investors with a new and effective risk management tool to manage their portfolios of Stock Connect eligible A-shares, reflecting the increasing global reliance on Stock Connect to access Mainland China’s burgeoning equity markets.