Hong Kong stock exchange names JPMorgan's Aguzin as new chief executive

The Hong Kong stock exchange operator on Tuesday named JPMorgan Chase & Co's international private bank head Nicolas Aguzin as its chief executive, a role in which he will be expected to step up the bourse's linkages with China. The appointment of a non-Chinese person as CEO of the Hong Kong stock exchange operator is striking, and Aguzin will have to balance the wishes of authorities in Beijing, international institutions, and Hong Kong local brokers and traders.

Aguzin, an Argentine, takes over HKEX at a time when shares of the company are near record highs boosted by high trading volumes, particularly through the stock connect schemes which link the Hong Kong bourse with mainland markets. He will replace Charles Li, another former JPMorgan banker, who announced his resignation as the chief executive of Hong Kong Exchanges and Clearing (HKEX) in May.

Aguzin, whose appointment is subject to approval from markets watchdog the Securities and Futures Commission, has been appointed for three years, starting May 24, the Hong Kong exchange said in a regulatory filing. Ashley Pittard, head of global equities at asset manager Pendal an HKEX shareholder said: “Following recent Chinese mainland futures purchases, I’m surprised the CEO wasn’t more Chinese affiliated."

"The future for the Hong Kong exchange is to tie up with mainland exchanges as a gateway to China’s financial hub so this is an interesting decision.” Aguzin is the first non mainland or Hong Kong Chinese to be permenant CEO of HKEX since its formation in 2000 through the merger of the Stock Exchange of Hong Kong, the Hong Kong Futures Exchange with the Hong Kong Stock Exchange and the Hong Kong Securites Clearing Company.

HKEX chairman Laura Cha said Aguzin: brings "a wealth of international and regional experience in capital markets and financial services, including extensive knowledge of Mainland China, having served as chief executive for JP Morgan in Asia. This will be invaluable to us as we continue to build our business’ success," said HKEX chairman Laura Cha. Hong Kong was the second most popular listing venue in the world in 2020 with deals worth $31.2 billion, compared to Nasdaq's $51.3 billion, according to Refinitiv data.

The bourse has benefitted from a slew of Chinese companies looking to raise capital in the Asian financial hub via primary floats, as well as secondary-listings from U.S.-listed Chinese companies such as tech firms JD.com and Netease . The appointment of Aguzin also comes against the backdrop of Beijing's imposition of controversial national security law on the former British colony that has clouded its outlook as a leading financial center.

Aguzin was appointed as the CEO of JPMorgan's international private bank in January 2019. He joined the Wall Street bank in 1990 in Argentina, and was based in Hong Kong as the chairman and chief executive officer of JPMorgan Asia Pacific from 2012 to February 2020.

In an internal memo seen by Reuters, JPMorgan said Martin Marron, the chief current chief executive of its Latin American private bank and head of its Latin America and Canadian operations will become lead the international private bank replacing Aguzin.