JUNEASIA BUSINESS OUTLOOK8HONG KONG STOCK EXCHANGE TO INAUGRATE DUAL COUNTER TRADING MODELSINPOEC REACHES AGREEMENT WITH KAZAKHSTAN TO BUILD A PETROCHEMICAL COMPLEXInvestors will be able to start exchanging assets listed on both Hong Kong dollar and renminbi counters on June 19, according to a statement from the Hong Kong Stock Exchange on Friday.The exchange operator had indicated plans to change the current trading format late last year in order to streamline the trading process for an increasing number of Chinese companies with U.S. listings that are executing secondary or primary listings in Hong Kong.On June 19, the exchange operator announced in a filing that the dual counter market making programme in its securities market, which is anticipated to increase the liquidity of renminbi counters and reduce price discrepancies, will also go into effect.HKEX CEO Nicolas Aguzin emphasised the advantages of these most recent actions, saying, "It will give issuers and investors more choice, it will enrich Hong Kong's RMB products ecosystem... and it will support the ongoing internationalisation of RMB."The inaugural list of dual counter securities and dual counter market makers would be made public by HKEX in due course, it was stated.Several large corporations, including Tencent, AIA Group, and Ping An Insurance Group Co of China Ltd, have already submitted their bids for a dual currency counter.Separately, HKEX announced that a series of testing sessions would be held between May and June to kick-start the launch preparations and help market players trading under the model. Sinopec announced that it has reached an agreement with Kazakh state-owned oil and gas business KazMunayGaz to build a gas-based petrochemical complex in Kazakhstan's Atyrau area, with a final investment decision expected in 2024.The deal was signed on the margins of the China-Central Asia Summit, which is currently taking place in Xian, China's Shaanxi province, where China President Xi Jinping is meeting with the leaders of five ex-Soviet countries to discuss greater cooperation in a variety of industries, including energy.The firms agreed to construct a petrochemical complex with an annual capacity of 1.275 million tonnes that will convert ethane, a byproduct of natural gas fields, into ethylene.They also agreed to develop two polyethylene plants, each with a capacity of 625,000 tonnes per year, according to the newspaper.President Xi met with his Kazakh counterpart, Kassym-Jomart Tokayev, and the two discussed strengthening bilateral trade and economic ties.Sinopec, PetroChina, and CNOOC, China's three largest state-owned oil companies, have all previously invested in Kazakhstan's oil and gas sector. PetroChina, along with Western oil giants and KazMunayGaz, is a member of the consortium developing the Kashagan project in the Caspian Sea, Kazakhstan's second-largest producing field.In 2022, investment between China and the five countries had hit a new high of more than $70 billion. NEWSROOM
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