China's $2.5 trillion savings could bring 'opportunities for growth,' HKEX CEO says

Excess savings from Chinese households could beryllium maturation opportunities and volition apt bring "active" economical show for the Hong Kong Exchanges and Clearing, its CEO told CNBC connected Thursday.

"I deliberation the 2nd and 3rd 4th should beryllium progressive quarters successful presumption of economical show by China," Hong Kong Exchange and Clearing CEO Nicolas Aguzin told CNBC's Emily Tan.

He said helium sees astir $2.5 trillion dollars successful excess savings accumulated by Chinese households during Covid.

"All that depletion that didn't person the accidental ... each of a abrupt is going to beryllium turned backmost into the market, creating large opportunities for growth," Aguzin said.

The CEO's comments travel aft the bourse relation released afloat twelvemonth net for 2022 that saw a astir 20% driblet successful profits, with the full magnitude of nett attributable to shareholders astatine 10.08 cardinal Hong Kong dollars ($1.7 billion)

Meanwhile, HKEX saw a grounds 4th fourth high, with its nett attributable to shareholders astatine HK$2.98 billion, an 11% leap compared to 2021.

In HKEX's net statement, Aguzin said a "horizon of opportunity" lies up for the year.

"We volition proceed to spot the merchandise of Mainland China's home savings, the exponential maturation of concern travel successful and retired of the Mainland, and the acceleration of planetary information successful the Mainland's economy," helium said successful the release.

Shares of HKEX gave up gains of much than 1% aft the net merchandise and closed level connected Thursday.

HKEX saw lone 90 caller IPO listings successful 2022. That's compared to 182 IPOs successful 2019 and 218 caller listings successful 2018, HKEX's marketplace statistics showed.

"Macroeconomic and geopolitical conditions led to anemic sentiment and softness crossed the planetary IPO market," the institution said successful its net release.

However, Aguzin said successful the connection determination were "signs of encouraging momentum successful the IPO market" successful the 2nd fractional of the year.

Looking up to 2023, helium told CNBC, "It should beryllium a overmuch much constructive year," and emphasized that there's a "positive momentum that we're having successful China itself."

Bloomberg reported earlier Wednesday that Chinese authorities person asked state-owned enterprises to signifier retired utilizing "Big Four" U.S. accounting firms.

Asked if there's a heightened hazard of companies delisting, Aguzin answered: "I don't cognize however delistings volition proceed, oregon if determination volition be. I mean that's a dialog that's taking spot and it volition travel its ain course," helium said, adding that helium believes determination is worth to having "more planetary interaction."

"We are the model that connects China and the world. And we are doing what we tin successful presumption of making definite that determination is much interaction, much connectivity."

Asked astir efforts to pull Saudi Aramco, the state-owned lipid elephantine successful Saudi Arabia, Aguzin said: "What I'm astir excited astir the Middle East, is the accidental that you person with the apical 10 plus managers, sovereign wealthiness funds from there."

"They person astir $3.8 trillion nether management," helium added.

"We're ever unfastened to Middle East companies that tin travel if they wanted to. That tin beryllium channeled successful this portion of the world," helium said.

The CEO said HKEX's signed memorandum of understanding with the Saudi Tadawul Group is inactive successful its "early stages."

"We'll besides person immoderate speech of personnel, truthful tons of initiatives – and we're successful aboriginal days truthful we'll person to spot however it turns out," helium said without elaborating further.

"The cardinal constituent is making definite we person that connectivity. It's 2 large markets — they person the aforesaid objectives that we have. They privation to connect, they privation to marque definite that the investors person opportunities, that their companies tin develop, that they tin enactment connected this diversification." helium said.