JPMorgan’s Aguzin said to be named CEO of Hong Kong Exchange

Nicolas Aguzin, who heads JPMorgan Chase & Co’s international private bank, is resigning from the US lender to be named chief executive officer of Hong Kong’s stock exchange.

The banker has been picked to lead Hong Kong Exchanges & Clearing, according to people familiar with the decision, who asked not to be named discussing a private matter. He replaces Charles Li, also a former JPMorgan banker, who announced his resignation in May and left at the end of last year after a decade at the helm.  

Mr Aguzin is stepping into the role at a time when Beijing is asserting its grip on the financial hub and the bourse is riding a boom in big Chinese company listings and inflows of mainland cash. In its search, the board had been split between picking a candidate who can operate with confidence in China or one with a strong international background, people familiar have said.

While not from Hong Kong, or mainland Chinese like his predecessor, Mr Aguzin is well connected and known in the region after serving as JPMorgan’s chairman and CEO of Asia Pacific from 2012 to 2020. Before that he led the bank in Latin America and held various senior investment banking roles after joining the US bank as a financial analyst in 1990.

The incoming CEO will need to build on Mr Li’s success over the past years in linking the exchange closer to China, while also facing increased competition from mainland bourses in Shanghai and Shenzhen.

Chairman Laura Cha, who’s well-connected in China, sees the bourse’s role as serving Beijing’s interests and avoiding competition with the mainland, a person has said.

Mr Li was dubbed “Mr China” for linking the bourse closer to the mainland and helping open doors for foreign investors. The exchange’s revenue doubled during his tenure and its stock has surged ahead of the broader market.

Mr Li’s major setback, however, was the failed attempt to take over the London Stock Exchange Group in 2019.

In an interview with Bloomberg in December, Mr Li said the CEO’s job is all about “steering conflict” both in Hong Kong and on the mainland, but also one that entails taking risks. Tightening links further with the mainland is the “irreversible” path for the bourse, he said.

Even so, the push toward the mainland is not all welcome in China, in part as it seeks to promote its mainland bourses and open its financial markets.

Expanding the link to include several benchmark stocks has proved difficult. One sticking point is whether to include shares like Alibaba Group Holding, which are dual-listed and with weighted voting rights.