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Speaker 1: This podcast is brought to you by HKX, Asia's ETF marketplace. Well,

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Speaker 1: you'll find a gateway to liquidity and a diverse selection

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Speaker 1: of opportunities across asset classes, sectors and themes in Asia

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Speaker 1: and beyond. Search HKX to learn more.

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Speaker 2: Good morning, good afternoon, good evening, and good nights wherever

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Speaker 2: in this fast, beautiful planet you're joining us from. Welcome

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Speaker 2: to Tiger Money, bloomber podcast about all things investing, with

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Speaker 2: a twist on exchange traded funds, in age and beyond.

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Speaker 2: Of course, keeping mind, money flows to where it's treated

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Speaker 2: the best. That is why global ets are on course.

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Speaker 2: Get this attract more than thirty five trillion dollars in

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Speaker 2: assets by twenty thirty five. To get a sense of

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Speaker 2: where we go from here. Thank you for joining us

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Speaker 2: on this episode of the Tiger Money Podcast. I'm your

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Speaker 2: host daviding Less, Chief Markets Editor for the Asia Pacific

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Speaker 2: and host of The China Show on Bloomberg TV, and

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Speaker 2: my co pilot is.

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Speaker 3: I'm Rebecca Soon, head of Asia Pacific ETF Research at

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Speaker 3: Bloomberg Intelligence, or as David's to say, Tiger Mount ETFs

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Speaker 3: are marking their twenty fifth anniversary here in Hong Kong

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Speaker 3: in milestone that coincides with a ten year anniversary of

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Speaker 3: Hong Kong Stock Connect, a cross border trading link between

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Speaker 3: Hong Kong and mainland China. So with these two important

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Speaker 3: trading and investment anniversary, let's bring in Brian Roberts, head

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Speaker 3: of Equity Product Development at Hong Kong Exchange. It's important

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Speaker 3: for our listeners to know that Hong Kong Exchange is

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Speaker 3: a sponsor of Tiger Money. An interesting fact about Brian

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Speaker 3: is that he's passionate about American football and his favorite

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Speaker 3: team is a Green Bay Packers and they are a cheesehead.

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Speaker 3: For those that don't know what that is, it's a

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Speaker 3: hat in the shape of a cheese So welcome Brian

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Speaker 3: on Tiger Bunning.

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Speaker 4: Thank you, And I do have to confess I actually

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Speaker 4: own one of the cheese wedge.

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Speaker 5: Hats, so I'm a true Packers fan.

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Speaker 2: Okay, And yeah, for our listeners, I guess that is

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Speaker 2: literally a cheese hat. That's not an insult, No, that's

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Speaker 2: an inside baseball vanter here to Brian.

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Speaker 5: No exactly.

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Speaker 4: And I'm from Wisconsin, so it just comes part and

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Speaker 4: parcel with being born and raised there.

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Speaker 2: There we go the package. Brian, pleasure to have you

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Speaker 2: in the show and thanks for taking the time to

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Speaker 2: speak with us. And as Rebecca was pointing out, kwantum milestone,

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Speaker 2: you know, twenty five years since the first one was launched,

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Speaker 2: ten years of the stocknecking, which we'll you know, we'll

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Speaker 2: get to all of that throughout the course of the conversation,

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Speaker 2: but just tell us how you are, man. How has

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Speaker 2: this year been?

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Speaker 4: Yeah, you know, I think this year it's been a

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Speaker 4: good year. It's been up and down, I think, you know,

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Speaker 4: overall we've seen sentiment in the market going up and

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Speaker 4: down as well. With that, you know, across our equity platform,

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Speaker 4: we've seen some really good resiliency and growth in that market,

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Speaker 4: especially around our single stock option platform. This is a

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Speaker 4: platform that is achieving record all time highs in terms.

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Speaker 5: Of our average daily volume.

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Speaker 4: ETFs continues to be a spotlight in our cash equity market.

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Speaker 4: We're now trading about fourteen percent of our cash equity

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Speaker 4: market through the end of September is really being driven

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Speaker 4: by ETFs and we just recently for ETFs crossed over

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Speaker 4: that two billion US dollar average day turnover for the

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Speaker 4: year through September. So this has been really a solid year.

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Speaker 4: I think for HKX. We've seen recently towards the end

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Speaker 4: Q four sentiment turning more positive into the equity markets

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Speaker 4: with some of the policy announcements coming from China, also

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Speaker 4: with interest rates reducing, and we've really seen a tremendous

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Speaker 4: rebound in our average daily turnover, the liquidity and our

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Speaker 4: cash equity market where we've achieved a number of all

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Speaker 4: time records for single day trading. So again, it's been

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Speaker 4: one of these years where there's been some good times,

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Speaker 4: a little bit slower times, but again I think we're

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Speaker 4: on into a nice little positive trajectory into the future.

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Speaker 2: So it's an opportune time to talk about this. I mean,

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Speaker 2: there's the short term jubilation that we're seeing in markets.

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Speaker 2: We've barely had enough sleeve mon our team on The

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Speaker 2: China Show and Bloomberog TV of late, which is a

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Speaker 2: good thing because we've waited for this market turn for

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Speaker 2: such a long time and then suddenly it's come all

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Speaker 2: of a sudden. To help us understand how that affects

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Speaker 2: your world, Brian, I mean, oddly speaking, I think Hong

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Speaker 2: Kong sits I'm not mistaking number seven in terms of

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Speaker 2: AUM and the region. So give us the context and

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Speaker 2: also give us the nuance there on the ranking, and

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Speaker 2: is what's the plan to make it up that ladder?

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Speaker 4: Yeah, I think again, like you said, a lot of

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Speaker 4: these rankings, they always need to have some context behind them.

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Speaker 4: You know, Hong Kong right now we sit seventh, as

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Speaker 4: you mentioned, in terms of assets under management, but in

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Speaker 4: terms of turnover we're number four. And also when a

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Speaker 4: metric that is very important to us is really the

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Speaker 4: turnover velocity. This is really when we look at it,

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Speaker 4: it's the efficiency in which we can provide liquidity to

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Speaker 4: the demand in the market, and we actually sit number

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Speaker 4: two in the region in terms of that.

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Speaker 5: So these are very important metrics for us.

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Speaker 4: And when again looking at rankings as a whole, I think,

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Speaker 4: especially with the fund management industry, you have to also

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Speaker 4: look at it in the context of the domestic local

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Speaker 4: population as well. Hong Kong is generally a very small population,

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Speaker 4: and I think Hong Kong as a whole generally will

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Speaker 4: punch above its weight class because for us, we have

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Speaker 4: to think about products different we have to distribute products differently.

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Speaker 4: So for us, I mean we have to draw investors

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Speaker 4: in across the region and really kind of serve as

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Speaker 4: a hub for ETFs here within the region, and I

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Speaker 4: think we do a really good job about that. We

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Speaker 4: create a very diverse platform. We're focused on creating efficient

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Speaker 4: supplies of liquidity, and that really is what.

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Speaker 5: Kind of brings investors in.

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Speaker 4: I think also with Hong Kong's low tax regime, this

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Speaker 4: provides advantages for investors within the region to potentially get

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Speaker 4: a more tax efficient structure than potentially going into other

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Speaker 4: international markets to get those kind of exposures. So again,

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Speaker 4: I think for us, it's just continue to do the

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Speaker 4: things that we've been doing, continue to innovate and iterate

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Speaker 4: on products, continue to improve the market structure, and just

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Speaker 4: continue to increase the awareness and the advantages of investing

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Speaker 4: in Hong Kong.

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Speaker 5: Ets.

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Speaker 2: That's extremely important that we qualify what type of market

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Speaker 2: Hong Kong is. You know, I'm just going to give

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Speaker 2: a random example here. I was having a conversation with

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Speaker 2: a buddy of mine. They're in the startup space, right

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Speaker 2: and you know, Hong Kong is a market where you

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Speaker 2: don't have this large domestic market for startups to gain scale.

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Speaker 2: Before they think about the next chapter, they immediately have

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Speaker 2: to think about the global context, the immediately out of

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Speaker 2: the gates. So we just mentioned AUM as a metric

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Speaker 2: that at least the news we like to cover because

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Speaker 2: that's easy to understand for viewers. But for someone like

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Speaker 2: you in the industry, what is a good metric that

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Speaker 2: you guys use as a business? So how do you

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Speaker 2: measure your progress and success?

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Speaker 5: Yeah?

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Speaker 4: I think for us we look at it in a

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Speaker 4: very balanced perspective. Right. AUM is important because as the

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Speaker 4: ETFs are growing and AUM is growing, more issuers will

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Speaker 4: come to this market. Existing issuers will continue to issue

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Speaker 4: more and more products and things along those lines. So

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Speaker 4: AUM is one metric. Turnover is another one, right, because

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Speaker 4: this is really the supply of liquidity that investors can

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Speaker 4: get access to. But I think the one thing, and

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Speaker 4: I kind of mentioned this just moments ago, is really

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Speaker 4: around the turnover velocity. And for us, we want to

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Speaker 4: have this balance kind of ecosystem where there's a good

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Speaker 4: asset base but also really strong turnover into the market.

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Speaker 4: And I think when you look across the Asia Pacific market,

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Speaker 4: you generally will see a lot of markets that have

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Speaker 4: high AUM, but generally a lot of them have lower liquidity,

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Speaker 4: and so they have lower kind of turnover velocity there,

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Speaker 4: and so you have to kind of look at it

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Speaker 4: around the efficiency in which you can trade ETFs, and

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Speaker 4: I think for us, that's where we want to create

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Speaker 4: this balance and have enough liquidity, having a very efficient

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Speaker 4: supply of liquidity into the market to really kind of

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Speaker 4: attract investors. And I think we've been able to find

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Speaker 4: a way to balance that very effectively. But again, when

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Speaker 4: I look back over the past six to seven years,

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Speaker 4: this was a very concerted effort by the industry to

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Speaker 4: bring out the products to change the market structure here

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Speaker 4: at the exchange that we were driving to make it

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Speaker 4: more efficient. And for us, now you know our turnover

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Speaker 4: velocity has more than doubled, so we know that we're

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Speaker 4: on the right track about creating a very efficient supply

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Speaker 4: of liquidity to meet that demand for investors.

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Speaker 3: I remember you mentioned six or seven years ago, if

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Speaker 3: we look at the ETF that was trading on Hong

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Speaker 3: Kong Exchange, ninety percent of the trading volume was concentrated

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Speaker 3: on five names, and I think now as we look

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Speaker 3: at the ETF offering, it's a lot more diverse, and

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Speaker 3: those five names are no longer, taking ninety percent of

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Speaker 3: the market share. And so as we celebrate the twenty

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Speaker 3: fifth anniversary of ETFs on Hong Kong Exchange today. The

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Speaker 3: first ETF was a tracker fund two eight zero zero

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Speaker 3: HK that launched in nineteen ninety nine. It now has

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Speaker 3: twenty one billion US dollars in assets under management. For

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Speaker 3: our international audience, this would be equivalent to say, the

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Speaker 3: spy in the US. Where do you see the market growing?

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Speaker 3: One of our estimates was that the Hong Kong ETF

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Speaker 3: market could reach one hundred billion dollars in assets under

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Speaker 3: management by twenty thirty. But at the growth rate that

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Speaker 3: we're going, you know, currently we're already at seventy billion

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Speaker 3: dollars in assets under man management. I think last year

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Speaker 3: we were only at fifty billion. And so what do

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Speaker 3: you think the next twenty five years will look like,

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Speaker 3: both from an exchange perspective and where investors are going

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Speaker 3: to invest into?

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Speaker 5: Well, I mean, yeah.

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Speaker 4: Well, I feel like twenty five years it's a long time,

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Speaker 4: But I mean look, in twenty five years time, I

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Speaker 4: think Hong Kong will be very well cemented as the

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Speaker 4: regional hub for ETF trading. But you know, kind of

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Speaker 4: focusing on I think for us in the next five years,

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Speaker 4: our strategy is not changing, right. Our strategy has always

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Speaker 4: been really three pronged, which is around product innovation, market structure,

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Speaker 4: around just improving that trading efficiency, and then also around

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Speaker 4: increasing the awareness of Hong Kong ETFs to investors. So

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Speaker 4: that to us is really the recipe for success and

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Speaker 4: we're going to continue to implement that now. In terms

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Speaker 4: of getting to the AUM kind of estimations that you mentioned, Rebecca,

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Speaker 4: I think that's what we're all striving for, right. We

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Speaker 4: want to get to that one hundred billion dollar mark,

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Speaker 4: and we want to move on and go beyond that,

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Speaker 4: and I think we have the right ingredients for that

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Speaker 4: to happen. Just a couple of years ago, we launched

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Speaker 4: an introduced ETF Connect, which is the first mechanism that

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Speaker 4: really provides access into the mainland ETF market for international

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Speaker 4: investors to go there and then importantly for US southbound

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Speaker 4: investors in mainland to come here and trade our ETFs.

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Speaker 4: And we've really seen really good progress in.

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Speaker 5: Traction with that.

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Speaker 4: Earlier this year we made the changes that reduces some

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Speaker 4: of the criteria that's going to allow ETF issuers to

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Speaker 4: be able to bring out more diverse products to be

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Speaker 4: eligible for southbound ETF connects. So I think these are

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Speaker 4: all the right ingredients that we need to do to

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Speaker 4: help support that accelerated growth that we've been on. And again,

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Speaker 4: I think we have the right market structure to support

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Speaker 4: that liquidity coming in.

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Speaker 3: So if we go off the connect that you just

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Speaker 3: mentioned for our listeners, it's ultimately a two way scheme

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Speaker 3: where people can trade Hong Kong, Shanghai, Shanjen through the

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Speaker 3: connect program. And so it's the tenth year anniversary of this.

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Speaker 3: It started in twenty fourteen with a stock connect.

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Speaker 2: Yabe, it's been ten years. Yeah, I feel like I

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Speaker 2: just broke that headline literally last week of that opening up.

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Speaker 5: Yeah, sorry, Rebecca.

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Speaker 4: I just I can't believe it's twenty five years for ETFs.

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Speaker 4: I mean, just five years ago we were obviously just

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Speaker 4: kind of celebrating the twentieth anniversary. I just can't believe

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Speaker 4: how fast time it flies. It's like five years has

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Speaker 4: passed since then.

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Speaker 2: So I hear this a lot, and I'm curious to

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Speaker 2: get your perspective on this too. You know, the more

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Speaker 2: that mainland China opens up its market. Paradoxically, like people

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Speaker 2: would think, oh, Hong Kong is going to lose its

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Speaker 2: status as a financial center because you do have the

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Speaker 2: big financial centers in mainland China, But paradoxically the more

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Speaker 2: important Hong Kong gets as a gateway to an opening

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Speaker 2: mainland China. And I'm wondering, how are you seeing that

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Speaker 2: from your end?

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Speaker 4: Yeah, well, I think you know, Hong Kong and for

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Speaker 4: international investors, it really provides that access into the mainland market.

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Speaker 4: But I think importantly Hong Kong is going to serve

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Speaker 4: for main life and investors to get access to international

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Speaker 4: products and securities. You know, we've introduced the international stocks

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Speaker 4: or securities into Stock connect They're now eligible for that.

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Speaker 4: And I think ETFs, as we continue to improve and

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Speaker 4: reduce some of the eligibility criteria or enhance the eligibility criteria,

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Speaker 4: we're going to continue to see that. So's that's where

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Speaker 4: I kind of see Hong Kong. It's it's really this

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Speaker 4: super connector role that we play between East and West.

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Speaker 4: And again, I think as China continues to open up,

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Speaker 4: their capital is going to need to diversify and get

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Speaker 4: more exposure to international markets. And I think Hong Kong

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Speaker 4: is really going to be the place to be able

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Speaker 4: to serve those needs.

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Speaker 3: So I think if we go back to stock Connect

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Speaker 3: and the importance and significance given that as a tenth

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Speaker 3: year anniversary, ETF connect was launched about two years ago,

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Speaker 3: what can we expect from stock Connect ETF Connect in

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Speaker 3: the next few years.

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Speaker 4: Yeah, when you look at stock Connect as a whole,

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Speaker 4: this has been since it's come out over the decade,

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Speaker 4: it's been a constant evolution. Right. We have a history

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Speaker 4: of improving the universe, increasing the universe of the number

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Speaker 4: of securities, both in mainland and here in Hong Kong.

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Speaker 4: The same thing with ETF Connect, and we're going to

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Speaker 4: continue to do that. You know, we started out originally

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Speaker 4: being very domestic equity focused. Recently we lowered those eligibility criteria,

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Speaker 4: so now it's going to allow more international companies to

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Speaker 4: be included into the ETF Connect, so getting more broader

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Speaker 4: exposures there. So we're going to continue to iterate over

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Speaker 4: the next several years and continue to bring in more

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Speaker 4: and more diverse exposures for the mainland. That to me,

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Speaker 4: that's going to be the evolution. And then on top

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Speaker 4: of that, it's always about improving I say this a lot.

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Speaker 4: I'm an exchange person, so I talk about market structure

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Speaker 4: all the time, but it's really about how do you

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Speaker 4: continue to reduce the access barriers, how do you improve

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Speaker 4: the trading efficiency as well? And there's always been a

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Speaker 4: number of things that we've been doing on those perspectives

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Speaker 4: as well, So that's really going to be the main focus.

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Speaker 4: So again, the strategy for us just continues to remain

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Speaker 4: the same and it's been tried and true. But you know,

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Speaker 4: that's the direction of travel for connect Eventually it should

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Speaker 4: be fully open at some point.

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Speaker 2: And I guess somewhat there is a competitive element to

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Speaker 2: when you look at exchanges across the region, right, whether

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Speaker 2: that's Hong Kong Exchanges, Singapore, you know your counterparts in

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Speaker 2: Shanghai and Hinjen, And wondering do you feel it's it's

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Speaker 2: a competitive dynamic you guys have with your mainline counterparts

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Speaker 2: or is it more collaborative and in one sense of

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Speaker 2: creating this sort of greater ecosystem. I'm wondering how you feel.

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Speaker 5: Yeah, I mean no, I think it's completely collaborative.

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Speaker 4: You know, when we're creating ETF connects, stock connect, you know,

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Speaker 4: things along all these different connect programs. So it is

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Speaker 4: collaborative because it's mutually beneficial to both markets. Right, we're

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Speaker 4: bringing in a tremendous amount of international capital into their

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Speaker 4: equity market. At the same time, we're providing act access

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Speaker 4: for mainland investors for the China investors to be able

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Speaker 4: to diversify their portfolios into the Hong Kong market, whether

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Speaker 4: or not it's through Hong Kong listed ETFs or Hong

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Speaker 4: Kong listed stock. So I do think this is very

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Speaker 4: much a collaborative effort and mutually beneficial to both markets.

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Speaker 4: And I think just on kind of clothes on that,

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Speaker 4: I think it's been mutually beneficial, but it's also been

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Speaker 4: transformative for both sides as well, having these programs and

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Speaker 4: doing so I think in a very well regulated fashion.

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Speaker 3: So you mentioned the stock connect or an ETF connect

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Speaker 3: being fully transparent, fully open for international investors. Whether that's

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Speaker 3: from a product perspective, Hong Kong is the hub of

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Speaker 3: virtual assets for age specific. We have spot, we have leverage,

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Speaker 3: we have derivatives. How long do you think it'll take

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Speaker 3: stock connected ETF connect to be fully opened to allow

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Speaker 3: crypto ETFs?

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Speaker 4: Yeah, you know, when I was walking over here, I

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Speaker 4: dropped my crystal ball, so it's been completely shattered. So okay,

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Speaker 4: I don't have an answer to that. But when we're

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Speaker 4: having these discussions and how we can enhance the Connect

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Speaker 4: programs is we want to continue to expand the universe

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Speaker 4: and make more exposures, more securities available, both in mainland

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Speaker 4: China and also here in Hong Kong.

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Speaker 5: So that's the game plan.

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Speaker 4: We want to continue to move those conversations forward. But

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Speaker 4: in terms of when it will happen, no one has

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Speaker 4: a crystal ball at this point. But we're making the

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Speaker 4: right movements and having the right discussions. And again, I

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Speaker 4: think the trajectory of Stock Connect shows that it is

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Speaker 4: an evolution that is happening here and eventually we'll get there,

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Speaker 4: but we just don't know exactly when that will be.

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Speaker 2: You know, I lost count already because as you point out,

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Speaker 2: you know, this is a constantly evolving story to Stock Connect.

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Speaker 2: To be more specific to our listeners and viewers, how

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Speaker 2: many stocks are part of this universe?

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Speaker 4: Like?

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Speaker 2: Either way, I'm not sure if they're phrasing the question

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Speaker 2: properly here. So, yeah, what can mainland investors buy in

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Speaker 2: Hong Kong. How many what's that investable universe.

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Speaker 5: And vice versa.

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Speaker 4: If coming southbound they have access to over five hundred

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Speaker 4: stocks coming here. Going northbound, it's roughly I think it's

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Speaker 4: over twenty two hundred stocks that are available in the mainland.

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Speaker 4: So you know when kind of focusing on the sheer

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Speaker 4: numbers is one thing, but also around the coverage of

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Speaker 4: market capitalization, right, so you're covering well over eighty percent

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Speaker 4: of both markets market capitalization. So it's a very broad

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Speaker 4: program as is, and this has been something that again

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Speaker 4: we've been striving for to do, and again as the

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Speaker 4: program has evolved, more and more securities have been included.

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Speaker 3: I think if we look at ETF connect for one,

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Speaker 3: there's more than two hundred ETFs and on the other

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Speaker 3: one there's maybe seventeen. Indians are looking to add to that,

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Speaker 3: and I think with the new change that you mentioned

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Speaker 3: with lowering the threshold and having more international names, that

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Speaker 3: will definitely help in terms of ETF offering that's available

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Speaker 3: for investment.

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Speaker 2: Well, I'm just curious and I'm not sure sure there's

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Speaker 2: an answer to this question. Actually, So if I'm an

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Speaker 2: ETF issuer and obviously my end game is AUM and flow.

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Speaker 2: How do I raise my hand to be part of

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Speaker 2: this or like where does that you know, to get

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Speaker 2: bumped up in the league tables?

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Speaker 4: As they say, Yeah, well, I mean for this, we

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Speaker 4: have a prescribed criteria to be included in ETF connect

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Speaker 4: and so for that you can have up to forty

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Speaker 4: percent of your ETF being exposed to international equities.

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Speaker 5: There's a minimum AUM threshold.

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Speaker 4: Which is about five hundred and fifty million Hong Kong

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Speaker 4: dollars for southbound for ETFs in Hong Kong to be

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Speaker 4: eligible up there, and then there's a listing period of time.

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Speaker 5: That you need to be available, which is six months.

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Speaker 4: So there's a whole set of criteria that ETF issuers.

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Speaker 4: It's fully transparent that it's out there for them to see,

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Speaker 4: and once their ETF satisfies that, we do semi annual reviews,

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Speaker 4: so we will review those products every six months and

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Speaker 4: if you meet those criteria, you're in.

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Speaker 5: And so that's that's how you get in.

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Speaker 4: And it's the same way that it works for the

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Speaker 4: mainland issuers as well.

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Speaker 2: Yeah, and in terms of just the bold spectrum of

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Speaker 2: product offering that we offer global investors in Hong Kong.

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Speaker 5: Yeah, what do you think is lacking?

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Speaker 2: Where's the gap? So we have everything from everything, you know,

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Speaker 2: I was talking to Rebecca earlier on. We have a

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Speaker 2: whole slew of inverse and bears BT you know ets

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Speaker 2: for example for hedging, we have I don't know, pick

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Speaker 2: your theme. Where do you see the most growth?

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Speaker 4: A few areas that I think we could see some

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Speaker 4: more growth.

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Speaker 5: I do think.

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Speaker 4: Thematics and the levered in inverse space. I think there's

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Speaker 4: always going to be runaway there. I think one thing

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Speaker 4: with ETF issuers, they're never short of ideas.

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Speaker 5: Oh yeah out there.

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Speaker 2: Right, so not all It's almost like it's almost like

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Speaker 2: a party at two am. You ask anyone on any topic.

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Speaker 2: There there's a there's a there's an et there's an

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Speaker 2: ETF for that opinion.

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Speaker 4: Yeah. Yeah, there's a lot of space out there. And

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Speaker 4: again I think issuers do a good job about innovating

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Speaker 4: and bringing out new products and things along those lines.

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Speaker 4: But again I think thematics and levered and inverts, especially

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Speaker 4: here in Asia, I think are going to be products

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Speaker 4: that are going to continue to drive the growth. But

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Speaker 4: still even just the core asset allocation products whether or

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Speaker 4: not it's fixed income, some of your global kind of

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Speaker 4: broader like emerging markets, global equities. Having some of those

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Speaker 4: products in here as well, I think will be especially

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Speaker 4: attractive to institutional investors in this region. So one of

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Speaker 4: the things that I always kind of look at and

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Speaker 4: I talk to etf issuers, especially in the US and Europe,

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Speaker 4: is you know, there's not a lot of white space

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Speaker 4: in those markets, right, but when you come to Asia,

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Speaker 4: and this isn't just Hong Kong, when you come into

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Speaker 4: Asia as a whole, there is a lot of I

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Speaker 4: think open white space for product innovation and that you

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Speaker 4: can actually realize here Compared to a lot of these

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Speaker 4: other markets that I think are very very concentrated and

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Speaker 4: just trying to kind of carve out a niche in Europe,

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Speaker 4: in the US, I think it's very very difficult, and

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Speaker 4: that's where you see the flows in the US. It's

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Speaker 4: it's still very very concentrated. It's going to the top one, two,

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Speaker 4: three etf issuers into the top five ten products, and

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Speaker 4: here I think you have the ability to really innovate

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Speaker 4: and bring out some interesting products and have some clear

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Speaker 4: white space from a competitive standpoint.

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Speaker 1: This podcast is brought to you by HKX Asia's ETF marketplace,

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00:21:21,520 --> 00:21:24,359
Speaker 1: where you can get exposure to themes ranging from AI

431
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Speaker 1: to virtual assets, small cap to large cap, Greater China

432
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Speaker 1: to global search HKX to learn more.

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Speaker 3: So if we switch gears to the Middle East, this

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Speaker 3: is obviously a huge importance to the Hong Kong and

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Speaker 3: China market. We've just had two ETF's list in Saudi

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Speaker 3: Arabia tracking Hong Kong shares raising more than one billion

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Speaker 3: dollars in assets. Where do you see this market going

438
00:21:49,000 --> 00:21:51,879
Speaker 3: and what's the importance on Hong Kong exchange. You've added

439
00:21:51,920 --> 00:21:55,040
Speaker 3: the Saudi Exchange as one of your recognized stock exchange

440
00:21:55,280 --> 00:21:58,200
Speaker 3: last year. So where do you see the significance of

441
00:21:58,240 --> 00:22:00,440
Speaker 3: the Middle East? Houses is going to impact Hong Kong?

442
00:22:00,480 --> 00:22:02,879
Speaker 3: What's its potential and is this a game changer in

443
00:22:02,920 --> 00:22:03,440
Speaker 3: your opinion?

444
00:22:04,240 --> 00:22:07,480
Speaker 4: Well, I think first the one thing that Hong Kong

445
00:22:07,800 --> 00:22:11,239
Speaker 4: and HKUX does really well is we build connections. And

446
00:22:11,840 --> 00:22:14,480
Speaker 4: you know when we were talking about this earlier around

447
00:22:14,880 --> 00:22:18,240
Speaker 4: Hong Kong kind of punching above its weight class. This

448
00:22:18,320 --> 00:22:20,720
Speaker 4: is how we do it right. This has really been

449
00:22:20,920 --> 00:22:24,560
Speaker 4: you know, the key ingredient for our successes. Building these connections. Again,

450
00:22:24,600 --> 00:22:27,080
Speaker 4: whether or not, it's the connect programs that we've been

451
00:22:27,080 --> 00:22:29,800
Speaker 4: talking a lot about, and this here is really a

452
00:22:29,840 --> 00:22:33,320
Speaker 4: product connection that we've been building and working through with

453
00:22:33,640 --> 00:22:37,200
Speaker 4: Saudi Arabia. You know, late last year CSOP they launched

454
00:22:37,280 --> 00:22:40,960
Speaker 4: the world's largest Saudi Arabia ETF here. It's now about

455
00:22:40,960 --> 00:22:43,800
Speaker 4: one point two one point three billion US dollars of assets,

456
00:22:43,800 --> 00:22:46,359
Speaker 4: so it continues to grow. And now that product has

457
00:22:46,400 --> 00:22:49,880
Speaker 4: also been listed in mainland as well through a master

458
00:22:49,960 --> 00:22:53,760
Speaker 4: feeder structure. This here is really the next connection for

459
00:22:53,920 --> 00:22:58,119
Speaker 4: Hong Kong to continue to connect Asia capital into the

460
00:22:58,160 --> 00:23:01,800
Speaker 4: Middle East and then also help Middle East capital connect

461
00:23:01,800 --> 00:23:04,600
Speaker 4: here into Asia as well. So there's two ETFs that

462
00:23:04,640 --> 00:23:07,080
Speaker 4: you mentioned that were listed, one by Hang Saying, the

463
00:23:07,119 --> 00:23:10,359
Speaker 4: other by CSOP with their partners in the Middle East.

464
00:23:10,640 --> 00:23:14,280
Speaker 4: And again I think these are just important connections that

465
00:23:14,560 --> 00:23:17,119
Speaker 4: these markets are continuing to build. And I think that

466
00:23:17,280 --> 00:23:21,040
Speaker 4: is really what HKX and what Hong Kong just continues

467
00:23:21,080 --> 00:23:24,560
Speaker 4: to do really really well. It's build these market connections

468
00:23:25,000 --> 00:23:26,440
Speaker 4: with all the markets that are out there.

469
00:23:27,200 --> 00:23:27,720
Speaker 5: Interesting.

470
00:23:28,560 --> 00:23:31,679
Speaker 2: I remember I was having a conversation with the CEO

471
00:23:31,720 --> 00:23:34,720
Speaker 2: of Money China a few weeks back, and she mentioned

472
00:23:34,760 --> 00:23:37,920
Speaker 2: that more than being an exchange, you guys are really

473
00:23:37,920 --> 00:23:39,800
Speaker 2: a tech company if you think about it. You know,

474
00:23:39,840 --> 00:23:42,159
Speaker 2: the engineering that needs to be in place for the

475
00:23:42,200 --> 00:23:43,840
Speaker 2: world to see the fancy stuff.

476
00:23:44,320 --> 00:23:44,560
Speaker 5: Yeah.

477
00:23:44,680 --> 00:23:46,840
Speaker 2: The reason I bring that up is you guys are

478
00:23:46,880 --> 00:23:50,160
Speaker 2: almost at the frontier of many of the different business

479
00:23:50,200 --> 00:23:52,399
Speaker 2: areas that you're in, So it's almost like you're a

480
00:23:52,400 --> 00:23:55,959
Speaker 2: consultant number one when you deal with all your partnerships

481
00:23:56,200 --> 00:23:59,760
Speaker 2: in the mainland or across the region Middle East, Southeast Asia.

482
00:24:00,119 --> 00:24:00,960
Speaker 5: Bring that up as well.

483
00:24:01,640 --> 00:24:06,280
Speaker 2: If budget was no issue, if you're unrestrained by policy

484
00:24:06,600 --> 00:24:09,960
Speaker 2: on the other side of the table, for example, what

485
00:24:10,080 --> 00:24:12,639
Speaker 2: do you think you'd want to put in place, Like

486
00:24:12,640 --> 00:24:14,679
Speaker 2: what is that dream project that you think will be

487
00:24:14,680 --> 00:24:17,240
Speaker 2: better for everyone else if that was in place? Like

488
00:24:17,640 --> 00:24:21,280
Speaker 2: is it a stock connect for all? Is it's let's

489
00:24:21,320 --> 00:24:24,080
Speaker 2: bring spy to Hong Kong? You know what's that wish list?

490
00:24:25,040 --> 00:24:28,760
Speaker 4: You know? I guess first to Bonnie's comment, I didn't

491
00:24:28,760 --> 00:24:31,840
Speaker 4: hear it, but I do agree. I think exchanges are

492
00:24:32,000 --> 00:24:36,200
Speaker 4: technology companies. I mean, yes, you trade securities and different

493
00:24:36,200 --> 00:24:38,720
Speaker 4: things along those lines, but at the core of what

494
00:24:38,840 --> 00:24:41,320
Speaker 4: we do and the backbone of it all is really

495
00:24:41,359 --> 00:24:46,359
Speaker 4: having extremely efficient technology for capital to meet with opportunities.

496
00:24:46,400 --> 00:24:48,200
Speaker 5: So I think that's the first part.

497
00:24:48,240 --> 00:24:51,600
Speaker 4: Now, if there are things out there that you know,

498
00:24:52,040 --> 00:24:54,480
Speaker 4: no budget and whatever it is that we need to

499
00:24:54,480 --> 00:24:57,040
Speaker 4: bring here in different things along those lines. To me,

500
00:24:57,160 --> 00:25:00,720
Speaker 4: I actually don't think it's really a technological innovation and

501
00:25:01,000 --> 00:25:03,280
Speaker 4: different things along those lines. Is if I could just

502
00:25:03,359 --> 00:25:05,480
Speaker 4: wave a magic wand I would have all the products,

503
00:25:05,520 --> 00:25:09,400
Speaker 4: the ETF products you mentioned, SPY, you know, QQQ, you

504
00:25:09,480 --> 00:25:13,560
Speaker 4: have all these very well known liquid products. I would

505
00:25:13,600 --> 00:25:15,720
Speaker 4: just put them here in the Hong Kong market and

506
00:25:16,240 --> 00:25:19,960
Speaker 4: you just have one market here for Asia Pacific for

507
00:25:20,160 --> 00:25:24,320
Speaker 4: investors to trade whatever exposures they want. So to me,

508
00:25:24,440 --> 00:25:27,240
Speaker 4: that would be the way to do it, you know,

509
00:25:27,400 --> 00:25:30,240
Speaker 4: is just have all the products that you can ever imagine,

510
00:25:30,280 --> 00:25:32,199
Speaker 4: you just put it in and be this one stop

511
00:25:32,280 --> 00:25:32,800
Speaker 4: shop for.

512
00:25:32,800 --> 00:25:33,960
Speaker 5: All the investor needs.

513
00:25:34,000 --> 00:25:36,680
Speaker 4: So to me, that would be what I would kind

514
00:25:36,680 --> 00:25:39,000
Speaker 4: of think as what we would want, at least from

515
00:25:39,000 --> 00:25:39,639
Speaker 4: my perspective.

516
00:25:40,040 --> 00:25:42,719
Speaker 2: Well, thank goodness. Then the ETF providers are all very

517
00:25:42,720 --> 00:25:46,960
Speaker 2: creative thinkers. Here's here's what I think you guys need.

518
00:25:47,320 --> 00:25:49,720
Speaker 5: Yeah, everything, here's here's everything.

519
00:25:50,000 --> 00:25:52,440
Speaker 4: I mean, that's the thing for you know, be in exchange, right,

520
00:25:52,480 --> 00:25:56,880
Speaker 4: you're really a marketplace. Right. We provide the marketplace for

521
00:25:57,480 --> 00:26:02,359
Speaker 4: issuers to list, race capital, raise assets under management, be

522
00:26:02,640 --> 00:26:06,600
Speaker 4: creative in the market. We provide the infrastructure for liquidity

523
00:26:06,640 --> 00:26:10,520
Speaker 4: to be provided for investors come in and get those

524
00:26:10,560 --> 00:26:13,080
Speaker 4: access you know. So for us, we want to be

525
00:26:13,200 --> 00:26:15,919
Speaker 4: this one stop shop for all the kind of the

526
00:26:15,960 --> 00:26:18,639
Speaker 4: trading and the clearing, the product and the services needs

527
00:26:18,680 --> 00:26:22,520
Speaker 4: for investors here. So that's I think the beauty of

528
00:26:22,560 --> 00:26:25,520
Speaker 4: being the marketplace. You just want to have everything here

529
00:26:25,560 --> 00:26:28,280
Speaker 4: and let investors, you know, choose what they're interested in.

530
00:26:28,400 --> 00:26:31,320
Speaker 2: And I'm wondering, do you get frustrated sometimes there are

531
00:26:31,440 --> 00:26:35,359
Speaker 2: things that are obviously beyond your control. You can build

532
00:26:35,359 --> 00:26:38,800
Speaker 2: the platform, you can design it perfectly. And then we

533
00:26:38,800 --> 00:26:41,440
Speaker 2: were talking earlier on right like this year has been

534
00:26:42,480 --> 00:26:45,439
Speaker 2: in terms of market sentiment has been challenging, and suddenly

535
00:26:45,440 --> 00:26:47,760
Speaker 2: things have turned and suddenly there's all this money coming

536
00:26:47,800 --> 00:26:51,040
Speaker 2: in and suddenly you're seeing your products run. Yeah, And

537
00:26:51,080 --> 00:26:54,880
Speaker 2: I'm wondering, at some point you get frustrated sometimes because

538
00:26:54,920 --> 00:26:57,000
Speaker 2: there are things that are simply beyond your control. You know,

539
00:26:57,040 --> 00:26:59,320
Speaker 2: that is the nature Well, the market. You can design

540
00:26:59,359 --> 00:27:00,680
Speaker 2: that's good a product as you want, but.

541
00:27:00,880 --> 00:27:03,240
Speaker 4: Well, it's the fact of life. I mean, there's always

542
00:27:03,240 --> 00:27:05,840
Speaker 4: things that are beyond your control. But I think for

543
00:27:05,920 --> 00:27:09,480
Speaker 4: us and at HKX and within equity product development, we

544
00:27:09,520 --> 00:27:11,560
Speaker 4: always have to just remain focus on the things that

545
00:27:11,600 --> 00:27:14,320
Speaker 4: you can control. And one of the things you cannot

546
00:27:14,400 --> 00:27:19,160
Speaker 4: control is market sentiment and things along those lines. Every

547
00:27:19,280 --> 00:27:23,600
Speaker 4: market goes through peaks and valleys. Right sentiment is positive,

548
00:27:23,720 --> 00:27:27,439
Speaker 4: sentiment turns not so positive, and things along those lines.

549
00:27:28,080 --> 00:27:31,320
Speaker 4: But from an exchange standpoint, we always have to be

550
00:27:31,400 --> 00:27:35,440
Speaker 4: looking at how do we provide the right infrastructure, how

551
00:27:35,440 --> 00:27:39,159
Speaker 4: do we provide that right structure so when things do turn,

552
00:27:39,600 --> 00:27:42,200
Speaker 4: investors can capitalize on them. And I think a lot

553
00:27:42,200 --> 00:27:44,320
Speaker 4: of the things that we've been doing over the past

554
00:27:44,680 --> 00:27:47,880
Speaker 4: call it eighteen twenty four months, has really been improving

555
00:27:47,880 --> 00:27:51,000
Speaker 4: a lot of the infrastructure. We've rolled out for more

556
00:27:51,040 --> 00:27:54,040
Speaker 4: of the high frequency traders, a self match prevention kind

557
00:27:54,040 --> 00:27:58,240
Speaker 4: of trading mechanism. We just closed up the consultation and

558
00:27:58,280 --> 00:28:01,520
Speaker 4: the cash equity market to reduce the minimum tick sizes

559
00:28:01,600 --> 00:28:04,200
Speaker 4: or the minimum spreads. So hopefully when we roll that

560
00:28:04,280 --> 00:28:07,360
Speaker 4: out next year to be able to compress trading spreads

561
00:28:07,400 --> 00:28:10,000
Speaker 4: into the market. So there's all these things that we

562
00:28:10,119 --> 00:28:13,560
Speaker 4: just continue to do because you just never know when

563
00:28:13,760 --> 00:28:16,240
Speaker 4: the market is going to turn and liquidity is just.

564
00:28:16,200 --> 00:28:16,800
Speaker 5: Going to come through.

565
00:28:16,840 --> 00:28:19,320
Speaker 4: I mean we saw that again in late Q three

566
00:28:19,680 --> 00:28:22,600
Speaker 4: towards the end of September into Q four, where you

567
00:28:22,600 --> 00:28:25,320
Speaker 4: have this massive rush of liquidity and you just always

568
00:28:25,359 --> 00:28:27,119
Speaker 4: need to be ready and iterating on that.

569
00:28:27,840 --> 00:28:30,240
Speaker 2: Yeah, I mean people look up to you, guys. You

570
00:28:30,280 --> 00:28:33,919
Speaker 2: know this, the things will go unnamed. It was a

571
00:28:33,920 --> 00:28:36,240
Speaker 2: conversation I was having years back, and I think it

572
00:28:36,280 --> 00:28:40,560
Speaker 2: was it was still I think under Gucco where this

573
00:28:40,720 --> 00:28:42,560
Speaker 2: exchange basically said, can you put us in touch with

574
00:28:42,720 --> 00:28:44,840
Speaker 2: HCX because they had the best practices when it comes

575
00:28:44,880 --> 00:28:48,000
Speaker 2: to XXX, and we were happy to make that connection.

576
00:28:48,120 --> 00:28:50,880
Speaker 2: And I think to your point, right, and I'm wondering,

577
00:28:51,600 --> 00:28:53,240
Speaker 2: I think your ant did already. The last eighteen months

578
00:28:53,280 --> 00:28:55,440
Speaker 2: has been challenging, but that doesn't seem to have deterred

579
00:28:55,480 --> 00:28:58,080
Speaker 2: you guys in terms of fixing the roof and fixing

580
00:28:58,120 --> 00:29:00,520
Speaker 2: the plumbing, Yeah, fixing the pipe, Yeah, you.

581
00:29:00,520 --> 00:29:02,240
Speaker 5: Have to be doing that at all times.

582
00:29:02,440 --> 00:29:07,000
Speaker 4: Is I do think that HKX sets a global standard

583
00:29:07,160 --> 00:29:10,960
Speaker 4: for how exchanges can and should operate in terms of

584
00:29:11,040 --> 00:29:14,080
Speaker 4: the infrastructure, the regulations and things along those lines.

585
00:29:14,120 --> 00:29:15,520
Speaker 5: It doesn't mean we're perfect, right.

586
00:29:15,640 --> 00:29:17,360
Speaker 4: I Mean, if we were, then we wouldn't have to

587
00:29:17,400 --> 00:29:20,600
Speaker 4: be constantly iterating. But all exchanges, or a lot of

588
00:29:20,640 --> 00:29:24,440
Speaker 4: the really good exchanges, are constantly finding ways to improve

589
00:29:24,520 --> 00:29:28,320
Speaker 4: their infrastructure, their technology, the overall market structure to make

590
00:29:28,360 --> 00:29:33,280
Speaker 4: it easier for investors and people to access liquidity. So yeah,

591
00:29:33,320 --> 00:29:36,080
Speaker 4: you just continue day in and day out to improve

592
00:29:36,600 --> 00:29:38,840
Speaker 4: and again, don't focus so much on the things you

593
00:29:38,880 --> 00:29:41,840
Speaker 4: can't control, which is market sentiment. Focus on the things

594
00:29:41,920 --> 00:29:44,320
Speaker 4: that you can, which is our actions and the initiatives

595
00:29:44,320 --> 00:29:46,840
Speaker 4: that we can do to make it a better investor

596
00:29:46,880 --> 00:29:47,920
Speaker 4: in trading environment.

597
00:29:48,400 --> 00:29:53,000
Speaker 3: So, speaking about fixing exchanges, other exchanges have crashed had problems,

598
00:29:53,320 --> 00:29:57,800
Speaker 3: but Hong Kong Exchange hasn't recently. Why do you think

599
00:29:57,880 --> 00:29:59,960
Speaker 3: you guys were able to avoid this when other exchanges,

600
00:30:00,320 --> 00:30:02,360
Speaker 3: especially in times of volatility or when there's a lot

601
00:30:02,360 --> 00:30:04,320
Speaker 3: of trading volume, which we've had recently.

602
00:30:04,840 --> 00:30:07,560
Speaker 4: Look, I'm not going to get into what happened in

603
00:30:07,640 --> 00:30:11,840
Speaker 4: other exchanges and diagnose their problems or their challenges or issues,

604
00:30:12,280 --> 00:30:15,920
Speaker 4: you know, I think what's core to us is operating

605
00:30:15,960 --> 00:30:20,600
Speaker 4: a resilient market, and that is effectively what we do,

606
00:30:21,080 --> 00:30:24,880
Speaker 4: and that is at the forefront of it, in making

607
00:30:24,920 --> 00:30:28,920
Speaker 4: sure that we have the right infrastructure, the right market

608
00:30:28,960 --> 00:30:32,760
Speaker 4: structure in place, the right risk management in place as well,

609
00:30:33,200 --> 00:30:37,280
Speaker 4: you know, and how we handle that, how we collateralize

610
00:30:37,360 --> 00:30:40,600
Speaker 4: and margin on the derivative side, and things along those lines.

611
00:30:40,640 --> 00:30:44,600
Speaker 4: So again, it's an iterative thing. It's been something that

612
00:30:44,640 --> 00:30:48,720
Speaker 4: we've been evolving and trying to perfect over the years.

613
00:30:48,800 --> 00:30:51,840
Speaker 4: And again that's I think for us, we just we

614
00:30:51,880 --> 00:30:55,120
Speaker 4: have a tremendous amount of pride and just operating a

615
00:30:55,280 --> 00:30:58,200
Speaker 4: very resilient and vibrant market for ourselves.

616
00:30:58,360 --> 00:31:00,360
Speaker 3: We always get this question, but how how do you

617
00:31:00,400 --> 00:31:03,000
Speaker 3: select an ETF ticker on Hong Kong Exchange.

618
00:31:04,120 --> 00:31:09,160
Speaker 4: Well, for anyone, there is a little bit of a process,

619
00:31:09,600 --> 00:31:11,120
Speaker 4: you know. I remember back when I was on the

620
00:31:11,120 --> 00:31:14,720
Speaker 4: ETF issuer side and we were listening some ETFs on HKX.

621
00:31:15,200 --> 00:31:17,840
Speaker 4: I found it to actually be a very interesting process

622
00:31:18,280 --> 00:31:20,800
Speaker 4: because you go into a room, you pick out some

623
00:31:20,880 --> 00:31:25,760
Speaker 4: ping pong balls that correspond to stock codes that are

624
00:31:25,800 --> 00:31:28,760
Speaker 4: available for ets. And so you go in there and

625
00:31:28,800 --> 00:31:32,480
Speaker 4: you pick out five ping pong balls, again correspond to

626
00:31:33,320 --> 00:31:36,320
Speaker 4: a set of stock codes, and then you get those

627
00:31:36,320 --> 00:31:38,280
Speaker 4: five stock codes and you pick them.

628
00:31:38,520 --> 00:31:40,640
Speaker 5: You pick one from there, okay.

629
00:31:40,680 --> 00:31:45,040
Speaker 4: Right at the exchange, we have a predetermined like range

630
00:31:45,080 --> 00:31:48,280
Speaker 4: of stock codes for ETFs that are generally starting with

631
00:31:48,520 --> 00:31:51,840
Speaker 4: two or three and things along those lines. So the

632
00:31:51,960 --> 00:31:54,200
Speaker 4: range is predefined, and that's how we do it. Is

633
00:31:54,280 --> 00:31:58,760
Speaker 4: it's through this lottery kind of system. That's the standard way. Now,

634
00:31:58,800 --> 00:32:00,640
Speaker 4: the other way you leave it up to face, when

635
00:32:00,640 --> 00:32:02,800
Speaker 4: you leave it up to fate, okay, right, and you're

636
00:32:02,840 --> 00:32:04,960
Speaker 4: really going to roll the dice and picked out the

637
00:32:04,960 --> 00:32:07,560
Speaker 4: ping pong balls and things along those lines. But the

638
00:32:07,600 --> 00:32:08,920
Speaker 4: other way to do it is you can make a

639
00:32:09,080 --> 00:32:13,400
Speaker 4: charitable contribution to the HKX Foundation and you can make

640
00:32:13,440 --> 00:32:16,640
Speaker 4: that charitable contribution and then you get to pick your

641
00:32:16,680 --> 00:32:20,040
Speaker 4: stock code from that predetermined range of stock codes. So

642
00:32:20,040 --> 00:32:21,880
Speaker 4: there's two different ways to do it. You know, if

643
00:32:21,880 --> 00:32:23,120
Speaker 4: you want to leave it up to fate, you can

644
00:32:23,120 --> 00:32:25,040
Speaker 4: do that. If you want to make a charitable contribution

645
00:32:25,200 --> 00:32:27,760
Speaker 4: and control your destiny and control your fate, you can

646
00:32:27,800 --> 00:32:28,760
Speaker 4: do it that way as well.

647
00:32:29,280 --> 00:32:32,680
Speaker 2: So if I've always had my eye on one HK

648
00:32:33,320 --> 00:32:36,640
Speaker 2: C K Hutch, if I suddenly woke up the next

649
00:32:36,680 --> 00:32:39,360
Speaker 2: morning I wanted a lottery, I had one hundred billion

650
00:32:39,400 --> 00:32:42,400
Speaker 2: dollars and I went, Brian, can you take this to

651
00:32:42,480 --> 00:32:45,720
Speaker 2: your team? I want one hk Is there a way

652
00:32:45,720 --> 00:32:47,080
Speaker 2: that you guys can make that happen.

653
00:32:48,200 --> 00:32:52,520
Speaker 4: Well, I would generally say, you cannot take someone else's

654
00:32:52,560 --> 00:32:54,960
Speaker 4: stock code. Okay, that is listed, but you need to

655
00:32:55,000 --> 00:32:58,440
Speaker 4: go talk to them, not the that's right, whether or

656
00:32:58,440 --> 00:33:00,680
Speaker 4: not they want to tell you them, to them, right,

657
00:33:00,800 --> 00:33:03,440
Speaker 4: and say you have one hundred billion dollars and you

658
00:33:03,440 --> 00:33:04,480
Speaker 4: want stock code one.

659
00:33:04,600 --> 00:33:08,000
Speaker 3: So an interesting fact is Meta was actually owned by

660
00:33:08,040 --> 00:33:11,920
Speaker 3: an ETF Fisher round Hill Ball, and they had that ticker,

661
00:33:12,400 --> 00:33:16,760
Speaker 3: and Mark Zuckerberg wanted it, and so they paid I

662
00:33:16,800 --> 00:33:20,680
Speaker 3: think it was maybe sixty million was what the rumored

663
00:33:20,680 --> 00:33:21,360
Speaker 3: amount was.

664
00:33:21,640 --> 00:33:23,600
Speaker 5: Only I have one hundred billion.

665
00:33:23,480 --> 00:33:26,640
Speaker 3: Get that ticker, and then they that ETF then became

666
00:33:26,800 --> 00:33:29,920
Speaker 3: m et V as opposed to m et A.

667
00:33:30,360 --> 00:33:32,200
Speaker 4: Yeah, I mean a one hundred billion dollars, there's a

668
00:33:32,240 --> 00:33:35,080
Speaker 4: lot of money. I figure they will, they might, they

669
00:33:35,120 --> 00:33:36,160
Speaker 4: might consider it, they'll at.

670
00:33:36,160 --> 00:33:38,200
Speaker 5: Least entertain a conversation, but.

671
00:33:38,200 --> 00:33:40,240
Speaker 2: Then money, I guess, goes to them and not you guys.

672
00:33:40,320 --> 00:33:43,680
Speaker 4: Right, Yeah, No, well it purely because it's there, It's

673
00:33:43,800 --> 00:33:45,240
Speaker 4: this is purely theoretical.

674
00:33:46,360 --> 00:33:47,960
Speaker 5: I would assume it would need to go to them.

675
00:33:48,000 --> 00:33:51,600
Speaker 4: But again, we've never had these situations where someone is

676
00:33:51,960 --> 00:33:54,520
Speaker 4: I mean generally you're not seeing someone going in and

677
00:33:54,560 --> 00:33:55,840
Speaker 4: acquiring someone else's stock.

678
00:33:56,000 --> 00:33:57,000
Speaker 5: Yeah, I've always had my eye.

679
00:33:57,320 --> 00:33:57,480
Speaker 4: You know.

680
00:33:57,520 --> 00:33:59,560
Speaker 2: Another thing that's also come up, and you can chime

681
00:33:59,600 --> 00:34:01,800
Speaker 2: in if you if you choose to a friend of

682
00:34:01,800 --> 00:34:03,920
Speaker 2: mine in the US said, why are your tickers in

683
00:34:03,960 --> 00:34:06,760
Speaker 2: the Asia Pacific? Why are they all numbers? You look

684
00:34:06,760 --> 00:34:09,399
Speaker 2: at Japan, you look at Korea. You know. The sad

685
00:34:09,440 --> 00:34:12,719
Speaker 2: thing about working in a data company is on day two,

686
00:34:13,280 --> 00:34:15,800
Speaker 2: I know what seven hundred HK is. Yeah, I would

687
00:34:15,840 --> 00:34:18,040
Speaker 2: know what zero zero five nine three zero k as

688
00:34:18,200 --> 00:34:20,600
Speaker 2: that sounds. In electronics, has there ever been a point

689
00:34:20,640 --> 00:34:23,760
Speaker 2: where we toured with the idea of going from numbers

690
00:34:23,760 --> 00:34:25,120
Speaker 2: to letters at some point.

691
00:34:25,440 --> 00:34:29,760
Speaker 4: Well, you know, I came to Hong Kong over twelve

692
00:34:29,800 --> 00:34:30,279
Speaker 4: years ago.

693
00:34:30,719 --> 00:34:31,600
Speaker 5: That was probably.

694
00:34:32,120 --> 00:34:36,520
Speaker 4: I would say one of my biggest challenges was just

695
00:34:36,680 --> 00:34:39,680
Speaker 4: keeping all the numbers straight, because you know, in the

696
00:34:39,800 --> 00:34:41,640
Speaker 4: US and a lot of the western markets, they use

697
00:34:41,719 --> 00:34:44,600
Speaker 4: the alphabet, and it's just it's very kind of intuitive

698
00:34:44,640 --> 00:34:46,719
Speaker 4: intuitive that way, at least for me, because that's the

699
00:34:46,719 --> 00:34:49,400
Speaker 4: way I've been programmed. But I feel like in Asia,

700
00:34:49,600 --> 00:34:52,799
Speaker 4: numbers are very very important here, right the number eight.

701
00:34:52,920 --> 00:34:56,160
Speaker 4: I mean, you know, all of these numbers have very

702
00:34:56,440 --> 00:35:01,720
Speaker 4: symbolic and sentimental reasons behind it and across the Asian markets,

703
00:35:01,760 --> 00:35:05,000
Speaker 4: and to me, that's the reason why we use numbers

704
00:35:05,080 --> 00:35:08,640
Speaker 4: over the alphabets out here. So I think it's just

705
00:35:09,120 --> 00:35:11,680
Speaker 4: purely as simple as that. But I could be wrong.

706
00:35:12,160 --> 00:35:14,359
Speaker 4: You know, I wasn't the one that kind of invented it,

707
00:35:14,400 --> 00:35:17,920
Speaker 4: but given that most of the Asian markets are using numbers,

708
00:35:18,320 --> 00:35:21,240
Speaker 4: I would probably assume it's because of the symbolic meaning

709
00:35:21,280 --> 00:35:23,759
Speaker 4: behind numbers here and how you can pare them up

710
00:35:23,760 --> 00:35:27,280
Speaker 4: together and different things along those lines, like the meaning

711
00:35:27,320 --> 00:35:29,560
Speaker 4: of two A two eight and all that kind of stuff.

712
00:35:29,760 --> 00:35:33,080
Speaker 4: I think, and issuers really kind of look at these numbers,

713
00:35:33,120 --> 00:35:36,319
Speaker 4: I know, when we're talking to etf issuers and they're

714
00:35:36,320 --> 00:35:39,320
Speaker 4: getting their stock codes and different things along those lines,

715
00:35:39,360 --> 00:35:42,200
Speaker 4: and you know, people will ask, do I have to

716
00:35:42,200 --> 00:35:45,040
Speaker 4: have this one right because you know it has a

717
00:35:45,080 --> 00:35:47,959
Speaker 4: four in it or something along this line. So yeah,

718
00:35:48,000 --> 00:35:52,480
Speaker 4: there's I think the meaning behind numbers is very compelling

719
00:35:52,560 --> 00:35:55,240
Speaker 4: and meaningful here in Asia compared to the US.

720
00:35:55,640 --> 00:36:00,000
Speaker 2: And you know, ironically enough, your possibilities are literally infinite

721
00:36:00,600 --> 00:36:01,920
Speaker 2: when we deal with numbers.

722
00:36:01,600 --> 00:36:04,880
Speaker 4: Here, well, it becomes constrained by how many numbers we

723
00:36:04,920 --> 00:36:06,320
Speaker 4: can actually have in a stock code.

724
00:36:06,480 --> 00:36:08,560
Speaker 5: But is there a limit, uh, yeah.

725
00:36:08,440 --> 00:36:11,920
Speaker 4: Generally or is it about in the Hong Kong cases. No,

726
00:36:12,000 --> 00:36:13,640
Speaker 4: I mean you can go up to like I think

727
00:36:13,680 --> 00:36:16,719
Speaker 4: we can go up to like ninety nine thousand or

728
00:36:16,760 --> 00:36:19,640
Speaker 4: something like that. So I mean it's not like infinite infinite,

729
00:36:19,680 --> 00:36:22,000
Speaker 4: but like yeah, I mean at the end of the day,

730
00:36:22,080 --> 00:36:24,080
Speaker 4: I mean you can always just increase it if we

731
00:36:24,160 --> 00:36:24,560
Speaker 4: need it to.

732
00:36:24,640 --> 00:36:26,760
Speaker 3: But yeah, do you have a favorite ticker?

733
00:36:27,920 --> 00:36:34,239
Speaker 2: I love all the ETFs equally, Well one HK my

734
00:36:34,280 --> 00:36:34,680
Speaker 2: eyes on.

735
00:36:34,760 --> 00:36:36,920
Speaker 5: You just need a hundred billion? Just I need a

736
00:36:37,040 --> 00:36:37,560
Speaker 5: hundred billion.

737
00:36:37,920 --> 00:36:40,880
Speaker 2: Here we go, Brian, it's fantastic. Thank you for spending

738
00:36:40,880 --> 00:36:43,200
Speaker 2: the time and being a good sport and bantering with

739
00:36:43,280 --> 00:36:46,840
Speaker 2: us here in our latest episode of Tiger Money podcast.

740
00:36:46,840 --> 00:36:49,800
Speaker 2: That was Brian Roberts ahead of Equities at HK. It's Rebecca,

741
00:36:50,400 --> 00:36:50,759
Speaker 2: thank you.

742
00:36:50,719 --> 00:36:53,520
Speaker 3: For listening to Tiger Money, your Bloomberg podcast about investing

743
00:36:53,600 --> 00:36:56,600
Speaker 3: funds and the financial market in Asia and beyond. If

744
00:36:56,600 --> 00:36:59,239
Speaker 3: you like what you hear, don't forget to subscribe, like share,

745
00:36:59,360 --> 00:37:01,799
Speaker 3: or leave us a we would love to hear from you.

746
00:37:02,320 --> 00:37:04,360
Speaker 3: Until next time. You can find us inside the Bloomberg

747
00:37:04,480 --> 00:37:08,040
Speaker 3: terminal or LinkedIn. This podcast was produced by Clara Chan