The search for the chief of Hong Kong Exchanges and Clearing continues underway, with more reported details of its recruitment criteria which include a strong preference for the bourse to defer to Beijing as well as other mainland bourses.
Chairwoman Laura Cha sees HKEX's role as serving Beijing’s interest and avoiding competition with other Chinese exchanges, according to a «Bloomberg» report citing unnamed sources.
The views were shared in a backdrop of the ongoing recruitment to replace CEO Charles Li who is retiring more than a year before his contract ends.
Cha-Li Tensions
According to the report, Cha disliked Li’s working style – he sometimes left the board uninformed about important matters in early stages – and believed that he was given too much credit for Hong Kong’s cross-border equity trading accomplishments.
The origins of the flagship «Stock Connect» schemes were often romanticized by Li in a story of himself selling the idea to the chief of the Shanghai bourse on a napkin over lunch.
Tightened Control
Cha is believed to be taking a more assertive stance, tightening control on areas such as the recruitment of department heads which is required to undergo vetting by a board committee and the CEO.
Li’s resignation has already led to other exits including head of market development Li Gang and some of his team as well as general counsel Ferheen Mahomed and human resources head Eva Chau, both management committee members, the report added.
Candidate List
The report also unveiled a list of potential candidates to succeed Li. They include: HSBC APAC co-head Liu Che-Ning; HKEX’s interim CEO and COO Calvin Tai; Canada Pension Plan Investment Board CEO Mark Machin; ex-J.P. Morgan banker Philip Zhai; and HKEX head of markets Wilfred Yiu.
Cha views Tai as «a safe pair of hands due to his familiarity with the operations and infrastructure», the report added, and he would make a good successor for the purpose of more control.
In response to the report, an HKEX spokesperson said it declined to comment on «gossip or speculation» and that announcements will be made when the recruitment process has concluded.
