"Iron Lady" Laura Cha bids farewell to HKEX, former Hong Kong Securities and Futures Commission Chairman Carlson Tong takes over
$HKEX(00388.HK) disclosed the change of its chairman while releasing its Q1 2024 financial report.
On April 24, HKEX announced the appointment of Carlson Tong as the new chairman, succeeding Laura Cha. This marks the end of Laura Cha's nearly six-year tenure as HKEX chairman.
Retirement of the 'Iron Lady' of Capital Markets
With over 30 years of experience in financial markets, Laura Cha is considered a rare talent in the industry.
Born in Shanghai in 1949, Laura Cha was an outstanding student, earning a Bachelor of Arts from the University of Wisconsin, a Juris Doctor from the University of Santa Clara, an honorary Doctor of Laws from the Hong Kong University of Science and Technology, and the title of Fellow of the Hong Kong Academy of Finance.
In the 1990s, Laura Cha became active in Hong Kong's capital markets, holding key positions such as Assistant Director of the Corporate Finance Division at the Securities and Futures Commission (SFC), Executive Director, and Vice Chairman and Chief Operating Officer of the SFC.
In 2001, at the invitation of then-Premier Zhu Rongji, Laura Cha became the Vice Chairman of the China Securities Regulatory Commission (CSRC), making her the first deputy-ministerial-level official recruited from Hong Kong since China's reform and opening-up. During her tenure, she earned a reputation for her 'iron-fisted' approach to market regulation.
According to Xinhua News Agency, in her first year at the CSRC, 51 securities-related regulations were issued, laying the foundation for China's regulatory framework.
After leaving the CSRC, Laura Cha held several key positions, including Chairman of the Financial Services Development Council, member of the International Advisory Committee of the China Banking Regulatory Commission, and independent non-executive director of HKEX.
In April 2018, HKEX announced Laura Cha's appointment as Chairman, marking the beginning of the 'Laura Cha era.'
During her six-year tenure as HKEX Chairman, Laura Cha navigated challenges such as geopolitical turmoil and interest rate fluctuations, leading HKEX through difficult times. She contributed significantly by promoting market connectivity, optimizing listing mechanisms, diversifying investor structures, and expanding business diversification.
Under her leadership, HKEX advanced its internationalization strategy, including the implementation of the Stock Connect programs and major reforms to Hong Kong's listing regime, which successfully attracted the return of U.S.-listed Chinese companies.
Hong Kong Financial Secretary Paul Chan noted: 'During Laura Cha's tenure as HKEX Chairman, with the support of the Hong Kong SAR Government, she actively enhanced the exchange's fundraising functions, including introducing new listing mechanisms for innovative and specialized technology companies and special purpose acquisition companies (SPACs), facilitating overseas companies and U.S.-listed Chinese firms to list in Hong Kong, deepening and expanding financial market connectivity with the mainland, and improving the dual-currency (HKD-RMB) securities trading mechanism. Her efforts have greatly contributed to the development of Hong Kong's securities market and its status as an international financial center.'
Laura Cha remains optimistic about HKEX's future. She believes that Hong Kong and HKEX's role as a bridge between China and the world will remain unchanged. During her tenure, HKEX made significant internationalization efforts, including signing memoranda with two overseas exchanges to expand listing opportunities. She emphasized that HKEX must continue to diversify funding sources, investors, and listing resources. Despite current challenges, she expects capital to return as China's economy improves and market conditions stabilize, with new opportunities opening in the Middle East.
Former SFC Chairman Carlson Tong Takes Over
A little over a month ago, HKEX welcomed its first female CEO, Bonnie Chan, who replaced Nicolas Aguzin after his early departure. With Carlson Tong succeeding Laura Cha as Chairman, HKEX has seen two top leadership changes within two months.
Carlson Tong, 69, has extensive experience in Hong Kong's capital markets, particularly in corporate governance and regulatory compliance.
From 2007 to 2011, he served as Chairman of KPMG China and Hong Kong, becoming Chairman of KPMG Asia Pacific and a member of KPMG's Global Board in 2009. He was also a member of HKEX's Main Board and GEM Listing Committees from 2002 to 2006 and served as Chairman from 2006 to 2008.
Carlson Tong also held key roles at the SFC, serving as Chairman from 2012 to 2018, during which he oversaw major policy initiatives such as the launch of the Stock Connect programs and mutual recognition of funds between mainland China and Hong Kong.
Since 2021, Hong Kong's stock market has faced declining liquidity, with the Hang Seng Index falling for four consecutive years. HKEX's IPO numbers and fundraising scale have also dropped, leading to two consecutive years of declining performance. This presents challenges for the new leadership duo of Bonnie Chan and Carlson Tong.
Carlson Tong currently holds public roles closely related to Hong Kong's market liquidity policies. In August 2023, the Hong Kong SAR Government established a Task Force on Enhancing Stock Market Liquidity, chaired by Carlson Tong, to analyze factors affecting market liquidity and propose improvements.
Additionally, Carlson Tong was appointed to the Listing Policy Panel this year. The panel serves as an advisory platform for the SFC and HKEX to discuss regulatory and market-impacting listing policies.
Notably, HKEX disclosed Carlson Tong's compensation: he will receive a total of HK$4.55 million for his roles as Chairman and non-executive director in 2024/2025, with HK$3.5 million allocated to his position as Chairman.
Carlson Tong recently stated that Hong Kong's financial market is no longer solely reliant on stock trading. He highlighted opportunities in derivatives and ETFs, which have seen record trading volumes despite market downturns, as part of a diversified development strategy.
He noted that improving market liquidity is a long-term task and that HKEX and the SFC are studying medium-to-long-term reform proposals. He expects further measures to enhance market mechanisms and promote development.
Author: Yao Yuan
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