Hong Kong Exchanges and Clearing Limited (HKEX) and Guangzhou Futures Exchange (GFEX) announced today a new agreement which will see the exchanges cooperating to promote sustainability and facilitating the development of the Guangdong-Hong Kong-Macao Greater Bay Area.

According to HKEX, the exchanges will work together on the development of a green and low-carbon market in the region, exploring product development in both onshore and offshore markets. Under the new agreement, HKEX and GFEX aim to support China’s climate goals of reaching peak carbon emissions by 2030, and achieving carbon neutrality by 2060

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HKEX holds a 7% stake in GFEX, which was established earlier this year, creating the fifth futures exchange in mainland China, with a focus on serving the real economy and green development initiatives.

The announcement follows the launch in December by HKEX of the Sustainable and Green Exchange (STAGE), the first multi-asset sustainable investment product platform in Asia, aimed at supporting fast-growing global demand for sustainable finance.

HKEX Chief Executive Officer Nicolas Aguzin said:

“HKEX is the first offshore institution to have a direct investment in a Mainland derivatives exchange and we are very excited today to be confirming our commitment to work with GFEX in promoting the development of China’s derivatives markets. Reflecting our China Anchored strategy, HKEX will work with GFEX to actively explore new opportunities to drive the development of a green and low-carbon market in the region, and progress innovations to further the opening-up of China’s futures market.”