Navigating the Evolving Landscape of Financial Exchanges

Good Morning, Asia!

This is Nick Gordon, stepping in for Allie Garfinkle as the Asia editor.

Fortune's Global Forum Highlights

Recently, Fortune concluded its Global Forum in Riyadh, Saudi Arabia, showcasing a lineup of esteemed figures from the financial industry. Among the notable speakers were Barclays CEO C. S. Venkatakrishnan, Standard Chartered CEO Bill Winters, Circle CEO Jeremy Allaire, DBS CEO Tan Su Shan, and Bridgewater founder Ray Dalio.

Due to another significant event—the APEC CEO Summit in South Korea—I had to participate in the Forum virtually this year. However, I made it a point to catch Monday's mainstage discussion featuring Eng. Khalid Abdullah Al Hussan, the CEO of the Saudi Tadawul Group; Bonnie Chan, the CEO of HKEX; and Bob McCooey, vice chair at Nasdaq.

Resurgence of IPOs

After a few challenging years, the IPO market has shown signs of revival this year. The United States has witnessed two of the most significant listings: CoreWeave on Nasdaq, which raised $1.5 billion, and Figma on the NYSE, garnering $1.2 billion. However, Hong Kong has outshone the U.S., with the battery manufacturer CATL's secondary listing raising an impressive $5.5 billion back in May, making it the largest IPO of the year.

The race for IPOs across global exchanges is increasingly intense, with exchanges vying to attract listings through favorable regulations, investor expertise, and access to substantial capital.

Local Markets vs. Global Listings

During the discussion, Nasdaq’s Bob McCooey emphasized the importance of local markets. He expressed his belief that most companies should prioritize their home markets before considering international listings. He stated, “I believe that most companies belong in their local markets. I firmly do. I don’t go to Hong Kong, China, Tokyo, Singapore, Argentina, and try to convince companies not to list in their local markets, because most companies do belong there.” That said, McCooey also touted Nasdaq's appeal for those contemplating overseas listings, asserting that it holds “the strongest value proposition.”

Facing New Challenges

However, competition among exchanges is no longer the only concern. Al Hussan from Tadawul noted the rapid evolution within the industry, stating, “The pace of change—on the alternative platforms, on the sophistication of investors—it’s unheard of.” He reflected on his nearly two-decade career, emphasizing how every day introduces new platforms, methodologies, and requirements.

Bonnie Chan of HKEX echoed this sentiment, highlighting that emerging investors now have a range of choices beyond traditional stocks, including cryptocurrencies, commodities, and other “exotic instruments.” She remarked, “We’re entering into a stage where exchanges are not really competing with one another. We’re working together with one another to make sure that we all stay relevant.”

Hong Kong’s Robust Market Growth

Despite the challenges, Chan expressed confidence in HKEX's future. The stock markets in Hong Kong are experiencing a robust 2025, driven by a surge of investment in Chinese stocks. The city's benchmark index, the Hang Seng, has surged nearly 35% this year, significantly outperforming the Nasdaq 100, which has seen a 22% increase in the same period.

Reflecting on a previous phase of skepticism regarding the attractiveness of Chinese stocks, Chan noted, “We went through a phase where there were questions as to the investability of Chinese stocks. But now, we were able to see very strong appetite on the investor side,” particularly for companies in sectors like AI, semiconductors, green technology, and what she refers to as “new consumption.”

She even brought up a contemporary phenomenon, asking the audience, “You know this thing called Labubu? I’ve visited a few cities recently—Paris, London—and I always see the Pop Mart store and the lines waiting to get their blind box.”

Continuing the Dialogue

This forum serves as a platform to further explore the transformations taking place in the financial sector, alongside a vast array of other pertinent topics.