London Daily

Focus on the big picture.
Thursday, Dec 25, 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It has sparked an outcry from western governments, with the United States declaring that the city no longer maintained a “high degree of autonomy” and threatening to revoke its special trade and travel status.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
UK Mortgage Rates Edge Lower as Bank of England Base Rate Cut Filters Through Lending Market
U.S. Supermarket Gives Customers Free Groceries for Christmas After Computer Glitch
Air India ‘Finds’ a Plane That Vanished 13 Years Ago
Caviar and Foie Gras? China Is Becoming a Luxury Food Powerhouse
Hong Kong Climbs to Second Globally in 2025 Tourism Rankings Behind Bangkok
From Sunniest Year on Record to Terror Plots and Sports Triumphs: The UK’s Defining Stories of 2025
Greta Thunberg Released on Bail After Arrest at London Pro-Palestinian Demonstration
Banksy Unveils New Winter Mural in London Amid Festive Season Excitement
UK Households Face Rising Financial Strain as Tax Increases Bite and Growth Loses Momentum
UK Government Approves Universal Studios Theme Park in Bedford Poised to Rival Disneyland Paris
UK Gambling Shares Slide as Traders Respond to Steep Tax Rises and Sector Uncertainty
Starmer and Trump Coordinate on Ukraine Peace Efforts in Latest Diplomatic Call
The Pilot Barricaded Himself in the Cockpit and Refused to Take Off: "We Are Not Leaving Until I Receive My Salary"
UK Fashion Label LK Bennett Pursues Accelerated Sale Amid Financial Struggles
U.S. Government Warns UK Over Free Speech in Pro-Life Campaigner Prosecution
Newly Released Files Shed Light on Jeffrey Epstein’s Extensive Links to the United Kingdom
Prince William and Prince George Volunteer Together at UK Homelessness Charity
UK Police Arrest Protesters Chanting ‘Globalise the Intifada’ as Authorities Recalibrate Free Speech Enforcement
Scambodia: The World Owes Thailand’s Military a Profound Debt of Gratitude
Women in Partial Nudity — and Bill Clinton in a Dress and Heels: The Images Revealed in the “Epstein Files”
US Envoy Witkoff to Convene Security Advisers from Ukraine, UK, France and Germany in Miami as Peace Efforts Intensify
UK Retailers Report Sharp Pre-Christmas Sales Decline and Weak Outlook, CBI Survey Shows
UK Government Rejects Use of Frozen Russian Assets to Fund Aid for Ukraine
UK Financial Conduct Authority Opens Formal Investigation into WH Smith After Accounting Errors
UK Issues Final Ultimatum to Roman Abramovich Over £2.5bn Chelsea Sale Funds for Ukraine
Rare Pink Fog Sweeps Across Parts of the UK as Met Office Warns of Poor Visibility
UK Police Pledge ‘More Assertive’ Enforcement to Tackle Antisemitism at Protests
UK Police Warn They Will Arrest Protesters Chanting ‘Globalise the Intifada’
Trump Files $10 Billion Defamation Lawsuit Against BBC as Broadcaster Pledges Legal Defence
UK Says U.S. Tech Deal Talks Still Active Despite Washington’s Suspension of Prosperity Pact
UK Mortgage Rules to Give Greater Flexibility to Borrowers With Irregular Incomes
UK Treasury Moves to Position Britain as Leading Global Hub for Crypto Firms
U.S. Freezes £31 Billion Tech Prosperity Deal With Britain Amid Trade Dispute
Prince Harry and Meghan’s Potential UK Return Gains New Momentum Amid Security Review and Royal Dialogue
Zelensky Opens High-Stakes Peace Talks in Berlin with Trump Envoy and European Leaders
Historical Reflections on Press Freedom Emerge Amid Debate Over Trump’s Media Policies
UK Boosts Protection for Jewish Communities After Sydney Hanukkah Attack
UK Government Declines to Comment After ICC Prosecutor Alleges Britain Threatened to Defund Court Over Israel Arrest Warrant
Apple Shutters All Retail Stores in the United Kingdom Under New National COVID-19 Lockdown
US–UK Technology Partnership Strains as Key Trade Disagreements Emerge
UK Police Confirm No Further Action Over Allegation That Andrew Asked Bodyguard to Investigate Virginia Giuffre
Giuffre Family Expresses Deep Disappointment as UK Police Decline New Inquiry Into Andrew Mountbatten-Windsor Claims
Transatlantic Trade Ambitions Hit a Snag as UK–US Deal Faces Emerging Challenges
Ex-ICC Prosecutor Alleges UK Threatened to Withdraw Funding Over Netanyahu Arrest Warrant Bid
UK Disciplinary Tribunal Clears Carter-Ruck Lawyer of Misconduct in OneCoin Case
‘Pink Ladies’ Emerge as Prominent Face of UK Anti-Immigration Protests
Nigel Farage Says Reform UK Has Become Britain’s Largest Party as Labour Membership Falls Sharply
Google DeepMind and UK Government Launch First Automated AI Lab to Accelerate Scientific Discovery
UK Economy Falters Ahead of Budget as Growth Contracts and Confidence Wanes
Australia Approves Increased Foreign Stake in Strategic Defence Shipbuilder
×