Hong Kong's largest financial training organisation is working with authorities in Macau to establish an investment industry and a talent pool for a stock exchange in the former Portuguese colony.
The Hong Kong Securities and Investment Institute (HKSI) is responsible for licensing exams for brokers and asset managers in Hong Kong. Under an agreement signed with the Macau Institute of Financial Services, which is backed by the Macau Monetary Authority, it will train and hold the Hong Kong Securities and Futures Commission's (SFC) licensing examination in Macau.
"Hong Kong's SFC introduced licensing requirements with the enactment of the Securities and Futures Ordinance in 2003. The Macau authorities consider it a good reference base, recognising and adopting the Hong Kong licensing exam as an entry requirement for investment professionals until they come up with their own regulations at a later stage," Ruth Kung, HKSI's CEO, said in an interview.
Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.
"While Macau is traditionally strong in tourism and entertainment, it has a limited number of financial services practitioners, especially in the securities and futures businesses," she added.
The cooperation is also a good example of the greater integration promised by Beijing's Greater Bay Area development zone. The zone aims to promote talent and capital flows among China's two special administrative regions and nine Guangdong province cities to create an economic powerhouse. It also highlights Hong Kong's expertise and experience as an international financial centre. The city has been the world's largest initial public offering market in seven of the last 12 years.
Ruth Kung, CEO of the Hong Kong Securities and Investment Institute. Photo: Jonathan Wong alt=Ruth Kung, CEO of the Hong Kong Securities and Investment Institute. Photo: Jonathan Wong
China wants to establish a stock exchange in Macau, which will need to build up its financial industry talent, Kung said. "The training and licensing exam offered by HKSI can support and help nurture the talent needed for such development," she added.
HKSI held a first round of licensing exams in April and will hold another in October. The first round attracted 240 applicants from Macau, while the October exams have received 170 enrolments. "The number of enrolments is higher than expected, which shows Macau residents have a strong interest in entering the financial industry," Kung said.