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Economy · TMT · Fintech
HKEx to use blockchain for international investors to access Chinese A-shares
2018/11/02 03:54:55
China's News, China's Financial News, HKEx, Chinese A-shares

Nov 02, 2018 (China Knowledge) - CEO of Hong Kong Exchange and Clearing Limited (HKEx), Chares Li has announced plans for partnership with distributed ledger technology company, Digital Asset Holdings in its keynote speech for day two of Hong Kong Fintech Week 2018.

The partnership will introduce the first blockchain platform in the Hong Kong financial services industry. The platform will be used to support the Stock Connect Collaboration between Hong Kong, Shanghai and Shenzhen stock exchanges.

Blockchain technology, when leveraged on, can help boost the speed and efficiency of financial transactions; in particular for, the settlement and execution of trade specific targets in the stock exchange.

The exchange hopes that the new technology will improve information sharing between asset managers, brokers, and custodians located in Hong Kong, Shanghai and Shenzhen. A prototype is currently on trial and used by some market participants.

Blockchain's ability to allow asset managers to specify the allocation of shares will enable them for trading on behalf of their clients and solve time zones problem for those trading Chinese shares.

Some analyst and investors, such as veteran Wall Street investor Jim Rogers, have encouraged investors to capitalise on the recent downturn in Chinese stock market. The opening up of financial market in China will encourage more foreign investments in the next few years. The introduction of blockchain technology by HKEx can potentially encourage more northbound trade through the Stock Connect.

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