Carlson Tong’s appointment as the new chair of the Hong Kong stock exchange comes at a critical time as the city’s financial market struggles to regain its footing. Despite a recent rally in the Hang Seng index, the exchange has faced significant challenges, with IPOs sinking on their first day of trading and the market environment described as “brutal” by industry insiders.
Tong, along with newly appointed chief executive Bonnie Chan, faces the daunting task of turning around the fortunes of the exchange. With profits sinking and daily turnover falling, the leadership team is looking to promote Hong Kong as an international financial center and capitalize on the city’s strengths as a connector for China to the rest of the world.
Beijing’s support for the territory’s stock market, including plans to encourage major mainland enterprises to list in Hong Kong, provides a glimmer of hope for the struggling exchange. However, skepticism remains among industry insiders and overseas investors, with concerns about ongoing China-US tensions and the impact of the US election looming large.
As banks and law firms cut jobs and demand for IPOs remains weak, the future of Hong Kong’s stock exchange hangs in the balance. With calls for a “reset” and a focus on diversifying the investor base, the new leadership team must navigate a challenging landscape to revive the city’s financial center status.