Menu Menu Menu Login Login Log in Search Search Search

CEO of Hong Kong stock market vows to continue talks with Saudi Aramco

Wed 06 September 2017 13:11 | A A A

No recommendation

No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.

(ShareCast News) - Hong Kong Exchanges & Clearing chief executive Charles Li pledged to continue talks with Saudi Aramco to woo the oil major to its trading venue, particularly now given the bourse's planned IPO investment link with China.

Li told Reuters that "the talk will never stop" in trying to woo Aramco, with China now one of the largest buyers of oil from the Middle Eastern Kingdom.

Earlier this year, Li said the stock exchange would use its position as a gateway to mainland Chinese investors in order to clinch the listing.

Aramco's attractions for all of the world's main trading exchanges were enormous, with Saudi authorities thought to be planning to list close to 5% of the firm's shares in a dual-listing in Riyadh and on a second as yet undecided venue, potentially raising up to $100bn.

Aramco was thought to be favouring New York over London for its foreign listing, according to reports, but financial and legal advisors had recommended London as a less riskier option.

For his part, Li pointed out the benefits of having access to an additional liquidity pool supported by domestic Chinese liquidity.

"Having a rival liquidity pool that is supported by domestic Chinese liquidity that trades and invests at a very different valuation [...] allows them to walk on two legs globally at different clocks of trading," Li said.

    The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.



    More IPO news from ShareCast

    IPO Alert Service

    Be the first to know of any launches available online through Hargreaves Lansdown. Register now for our free IPO email alerts direct to your inbox.

    Register for free email alerts