London Daily

Focus on the big picture.
Thursday, Jul 31, 2025

Hong Kong to retain international financial hub crown for ‘years, decades’, MSCI CEO says

Hong Kong to retain international financial hub crown for ‘years, decades’, MSCI CEO says

Demise, lowered relevance of Hong Kong have been forecast for years, but the city always reinvents itself, Henry Fernandez tells virtual conference. MSCI’s decision to move futures contracts to Hong Kong last month has sent HKEX shares to record high

Hong Kong will retain its status as an international financial centre despite being buffeted by months of anti-government protests and concerns among some international investors about a controversial national security law for the city, according to the top executive at index provider MSCI.

Speaking at the Bloomberg Invest Global conference on Wednesday, chief executive Henry Fernandez dismissed talk of Hong Kong losing its crown to Singapore or other cities in Asia, and said he believed “strongly” in the city as an international financial centre.

“I’ve been going to Hong Kong, China and the rest of Asia for over 40 years. I have heard this story before many times, as to the demise and the relevance of Hong Kong,” Fernandez said during the virtual conference. “It hasn’t happened. Every time, Hong Kong comes back stronger, more resilient and reinvents itself.”

The National People’s Congress, China’s top legislature, said in May that it would draft a national security law for Hong Kong following months of street protests, prompting concerns the legislation could be used to restrict speech and assembly in the city. The move to sidestep the city’s legislature came after years of lawmakers failing to pass the legislation since Hong Kong’s handover from British control in 1997.

It has sparked an outcry from western governments, with the United States declaring that the city no longer maintained a “high degree of autonomy” and threatening to revoke its special trade and travel status.

Fernandez’s comments also came almost a month after Hong Kong Exchanges and Clearing (HKEX) said it would begin offering 37 futures and options contracts tied to MSCI’s Asia and emerging-markets focused indices, supplanting the index provider’s long-time partner, Singapore Exchange (SGX).

The news has sent HKEX’s stock to a record high of HK$320 over the past month. The bourse operator’s stock declined 0.69 per cent to close at HK$317.80 on Wednesday.

HKEX is expected to begin offering the first 10 of the contracts beginning in July, pending regulatory approval, according to a June 1 circular. The bulk of the 37 futures contracts are expected to be available in Hong Kong by mid-August.

SGX will no longer host more than two dozen MSCI futures products beginning in February, and warned its 2021 profit might drop by up to 15 per cent as a result. MSCI will continue to partner with SGX on Singapore Index products.

Fernandez said Hong Kong offered a large customer base of international, regional and Chinese investors, as well as a deep pool of liquidity. “Hong Kong is a great financial centre and will continue to prosper, for sure, for years and decades to come,” he said.

He also said MSCI does not pursue exclusives with its partners, but also did not want to pit its partners against each other. “With this licensing, it had to be Hong Kong or Singapore,” Fernandez said.

At the same time, the number of investors asking about the potential for A-shares futures in Hong Kong has “increased dramatically” since the agreement with HKEX was announced.

“The conditions are getting better to get that approval from mainland China,” Fernandez said. “We believe that China now has a very strong interest in supporting and encouraging the development of Hong Kong as an international financial centre. That could potentially be a good window for us to be able to launch that contract.”




Newsletter

Related Articles

0:00
0:00
Close
Former Judge Charged After Drunk Driving Crash Kills Comedian in Brazil
Jeff Bezos hasn’t paid a dollar in taxes for decades. He makes billions and pays $0 in taxes, LEGALLY
China Increases Use of Exit Bans Amid Rising U.S. Tensions
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Procter & Gamble to Raise U.S. Prices to Offset One‑Billion‑Dollar Tariff Cost
House Republicans Move to Defund OECD Over Global Tax Dispute
Botswana Seeks Controlling Stake in De Beers as Anglo American Prepares Exit
Trump Administration Proposes Repeal of Obama‑Era Endangerment Finding, Dismantling Regulatory Basis for CO₂ Emissions Limits
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
The British propaganda channel BBC News lies again.
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
×