Extraordinary bankers shoulder the mission of making the Hong Kong Stock Exchange global

By early January, after its CEO left prematurely, the Hong Kong Stock Exchange was caught up in discussions about a hiring decision that is vital to its future, which is critical to its future because it is the most important in Asia. An important financial center and a bridge between China and Western capital markets.

The choice of who will lead the Hong Kong Exchanges and Clearing House is obvious: According to tradition, in times of turbulent Hong Kong and its relationship with Beijing, appoint people from mainland China or Hong Kong to stabilize the ship. Or bet on a Portuguese-speaking Argentine who holds a Croatian passport and nickname — Gucho — which is widely known on the trading floors and boards of directors in London, New York, and Buenos Aires.

Surprised a Hong Kong institution that believed that 2021 was conservative rather than risky. In February, the Hong Kong Stock Exchange chose Nicholas Aguzin — Former head of JP Morgan Chase’s Asian business, became a Hong Kong resident since 2012, and a banker known internally for his stratospheric rise through the American group.

Aguzin joined JPMorgan Chase in Buenos Aires in 1990. When JPMorgan Chase CEO Jamie Dimon signed the press release announcing Aguzin’s new job at the Hong Kong Stock Exchange, even he was using the Gucho brand—a Spanish word game, implying his role as The reputation of big shots. “Guqiao is an outstanding leader and person,” Dimon gushed.

Accepting this job shows that he is very entrepreneurial.An Argentinian who runs a business in Asia-very bold

Prior to Monday’s first day as head of the Hong Kong Stock Exchange, the focus around Aguzin’s appointment had been that the 52-year-old man was not what he was-speak Chinese. But former colleagues at JPMorgan Chase and financial industry veterans said that this concern did not achieve the purpose of the appointment. Aguzin is known as the unobstructed operator and perfect negotiator at JPMorgan Chase, and he joined to rekindle the global ambitions of an exchange that faces the danger of over-reliance on narrow regional flows and Beijing’s ever-changing impulse.

“In the past few years, the Hong Kong Stock Exchange has repeatedly made breakthroughs in gaining a foothold in China, and connecting the world remains to be done,” wrote Shan Weijian, chairman of the Pacific Insurance Group, one of Hong Kong’s largest listed companies. Investment group, in the Chinese magazine Caijing. “As a foreigner, Gucho should better understand how to work hard in this area, which can contribute unique value to the Hong Kong Stock Exchange.”

Others saw a more direct prospect of new business. “I can see him convince Southeast Asian and Latin American companies to go public there,” said a person who worked closely with him.

Aguzin did not inherit the troubled company.The legacy of his predecessor on the Hong Kong Stock Exchange, another former JPMorgan Chase banker Charles Li It is widely regarded as very successful. Under his ten-year leadership, he is committed to promoting close cooperation with the mainland Shanghai and Shenzhen exchanges. He pioneered some plans to enable more investment in and out of mainland China through Hong Kong.

During Li’s tenure, the market value of the Hong Kong Stock Exchange Company more than doubled to 53 trillion Hong Kong dollars (6.7 trillion US dollars), making it the most popular global IPO venue in seven of the past 12 years. The company raised 398 billion Hong Kong dollars in 2020, the highest annual total in ten years. IPO and transaction flow are hit Record volume In recent months.

But even Li admitted that the exchange already relies heavily on Chinese capital and liquidity. Currently, Chinese companies account for more than half of Hong Kong’s listed companies and more than three-quarters of the total value of companies on the exchange.

Li Keqiang tried to appear in the form of an unexpected £32 billion acquisition of the London Stock Exchange Group in 2019 Failed quickly and humiliatingly. Launched with the attention of the world Anti-government protests In Hong Kong, rather than relying on the strength of its exchange, the failure has further highlighted the difficulty of reconciling economic and political interests between Asia and the West.

A member of the board of the Hong Kong Stock Exchange expressed regret that the acquisition of the London Stock Exchange was suspended, and said that under Aguzin’s leadership, international mergers should be a priority. “It should have been done a long time ago,” they said, adding that both Beijing and Hong Kong would benefit from closer ties between the West and Chinese capital markets.

Several people close to JPMorgan Chase said that the appointment of Aguzin shows that the exchange has not given up on ensuring a major international merger, and may even tilt again on the London Stock Exchange.

A former colleague of JPMorgan Chase said that if this is his first major move, it will use Gucho’s skills as a negotiator and diplomat to a large extent. His focus may be on transactions, but another responsibility will be to join a broader effort to protect Hong Kong’s reputation as an international financial center in Asia after the controversial transaction is implemented in Beijing. National Security Law And strict coronavirus border restrictions. Depending on the state of relations with China, the Hong Kong Stock Exchange may be forced to work hard to obtain regulatory approval for any transactions in many Western countries.

1.3 million USD

Nicolas Aguzin’s basic annual salary on the Hong Kong Stock Exchange

“If Hong Kong really wants to be the number one place for the best companies in the world in the next ten years, it has a person who knows the world and understands emerging markets very well, because he grew up in one place, but has always been in a world-class organization. Having received training, Nick makes a lot of sense,” said Micky Malka, a Venezuelan venture capitalist and Aguzin’s old partner.

As the owner of the Hong Kong Stock Exchange, Agujin’s annual salary is US$1.3 million, which is about 7% more than Li Ka-shing. He will also receive 211,756 shares-currently valued at approximately HK$100 million-which can be sold after two years in office, plus performance bonuses. However, the payroll is unlikely to be his main motivation. Aguzin’s wealth is as high as millions of dollars, partly because he holds MercadoLibre, which is Latin America’s response to Amazon and Alibaba. As a member of MercadoLibre’s board of directors, Aguzin has sold approximately half of his shares in the company for more than $7 million in the past few years.

Marcos Galperin, the Argentine billionaire who founded the free market, described Aguzin as “persistent.” Aguzin is the chief banker of MercadoLibre’s IPO, which currently has a market value of US$69 billion. “I met him in 2001, when we were a combative startup with less than $10 million in revenue, and he worked at JPMorgan Chase,” Galperin said. “I told him we would never hire an investment banker. Fast forward six years and he led our IPO.”

Aguzin did not elaborate on his short-term plans or long-term vision for the Hong Kong Stock Exchange. He used the first person in charge speech at the London Metal Exchange Asia Summit last week to remind the audience that Argentina is a country known for “wine, steak, football and tango”, but about Hong Kong’s status in the Greater China story. He carefully mentioned the “key role” of the city.

On Friday, in a video released by the Hong Kong Stock Exchange, Aguzin stated that it is “too early” to talk about the strategy, but said he hopes to develop the exchange while maintaining the “China anchor”.

“He could have done whatever he wanted, and the fact that he wanted to be the boss of the Hong Kong Stock Exchange tells you a lot about his appetite for risk and impact,” Marka said. “He has always had the shield of the JPMorgan Chase brand, but now this is him, his career, his face. Accepting this job shows that he is very entrepreneurial. An Argentine who runs things in Asia-this is too bold. “

By the end of his first week, people close to Agujin began to solve his lack of Mandarin skills: a Chinese-speaking friend explained that his appointment made his nickname even more important. A friend told him that to Chinese speakers, Gucho sounds similar to the words “taking care of” the company and “raising” funds.