Stockbrokers Monthly - A Few Minutes with the Asia Pacific Exchange
08.29.2012
The Stockbrokers Association recently met with the Asia Pacific Exchange to gain insight into their Australian market entry strategy and how they intend to differentiate themselves from other exchanges currently operating in Australia. Here’s what they had to say:1. What is the APX about?Asia Pacific Exchange (APX) is a listing market exchanges in Australia licensed by the Australian Securities and Investment Commission (ASIC). APX is progressing towards re-launching its securities exchange in 2012/2013 FY. APX will provide stakeholders with an alternative exchange in the Asia Pacific region. APX will provide the ability for listees to take advantage of Asian investment and at the same time will be cost effective for both market participants and listees. It is the aim of APX to be innovative and foster and nurture companies, providing the right trading and operational environment as they grow and meet relevant milestones over time. APX will target:
- Domestic companies/new listings
- Asian companies (e.g. from Greater China)
- Dual listing companies outside of Australia
- ETFs
- Fixed income bonds
2. When did the APX launch in its current format?In October 2008, AIMS Financial Group acquired and fully owned the Asia Pacific Stock Exchange (APX). Since that time, significant work has been done on the legal and compliance, business development and operations so that the stock exchange is ready to “go live”.Whilst APX was granted a stock exchange license by ASIC in August 2004, the origins of the exchange date to eight years prior when the Exempt Markets (EM). A number of companies including Sigma Company Limited, Sydney Futures Exchange Corporation Limited and Becton Development Limited were listed and traded on APX.3. How active has the APX been in the marketplace?Over the past few months, APX has started to meet with brokers, potential listees, sponsors and stakeholders to inform them of the strategy and create market awareness. This will further increase over the coming months, with the anticipation that brokers, listees and sponsors will sign up to the APX stock exchange.4. Who are the major shareholders of the APX?APX is a wholly owned subsidiary of AIMS Financial Group. Established in 1991, AIMS Financial Group is an Australian diversified non-bank financial services and investment group with a solid track record and enviable reputation in the mortgage lending, fund management and securitisation markets. The winner of over 30 Australian Financial Services Industry awards, AIMS Financial Group is head quartered in Sydney, Australia, with presence across the Asia Pacific region. Since 1999, AIMS issued about AUD 3 Billion residential mortgage-backed securities (RMBS) with most of them rated AAA by Standard & Poors. AIMS manages, in a joint-venture arrangement with AMP Capital, the AIMS AMP Capital Industrial REIT listed on the Singapore Stock Exchange. AIMS manages about $1.5 billion in funds.5. How will investors trade on the APX?Investors will trade on APX as they trade on ASX, via a broker. Settlement will be via CHESS and T+3. Broker numbers will be displayed in the market depth, which will allow for crossings to occur more frequently.6. What listing rules does the APX have?APX received approval for its listing rules in November last year. This was a major milestone for APX. The APX market runs on the premise of continuous disclosure like the ASX. The listing rules are available at www.apx.com.au7. How does APX intend to be different?APX is seeking to differentiate itself from other exchanges in a number of ways. These include:
- Opportunity for access to Asian (especially Chinese) capital – opening up new markets
- Opportunity for attracting large number of investors from Asia (especially in Greater China) to trade on APX’s stocks
- Opportunity for raising capital in Australia and Asia (especially in Greater China)
- Specifically targeting growth companies (from small, medium to large)
- Adopting a multilingual approach (starting with English and Chinese) in the trading and information platform and in customer services as well
- Advanced web-based trading system providing real time prices that is both easy to use and highly accessible to all market participants
- A multi-cultural team of executives who have a strong understanding of the workings of both Chinese and Western financial and capital markets
- High level of market transparency and high quality of services
- Flexibility in its listing rules (whilst still maintaining a very high level of accountability and rigour)
- Focusing on fundamentals (e.g. no short selling)
- Competitive listing and trading fees
8. What do you think is the growth potential for APX over the next 5 years?The growth opportunities for APX over the next 5 years are enormous. There will be opportunities to expand our product range through innovative strategies as well as increase our footprint through organic growth. China continues to grow and the world over the past few years has really begun to understand the critical role they have to play in the robustness of the resource, agricultural, construction and technology sectors in particular. APX will bridge the gap between Asian and Australian capital markets.9. What’s APX strategy linking Asian and Australia Capital?APX has extensive connections in the Asia-Pacific region with leading investment and securities firms in Singapore, Greater China and other Asian countries. APX also has strategic relationships with Chinese governments. APX offers all market participants an alternative listing venue to the ASX, Shanghai and Shenzhen stock exchanges. APX has a presence in Shenzhen and Beijing.APX acts as a bridge for capital, knowledge, deals and investor flows between Asia and Australia. In this capacity, APX aims to attract:
- Australian companies to be listed on APX
- Asian companies (especially from Greater China) to be listed on APX
- Australian investors to invest in companies listed on APX and to trade the Stocks on APX
- Asian investors (especially from Greater China) to invest in companies listed on APX and to trade the Stocks on APX. APX aims to attract millions of investors from Asia (especially Greater China) to trade on APX’s stocks.
- Capital raising from Australia capital market
- Capital raising from Asia capital market (especially Chinese capital market)
APX aims to attract millions of investors from Asia (especially Greater China) to trade on APX’s stocks. APX has a RMB board indevelopment. It will help companies to raise capital using RMB in China. Chinese investors will be able to trade shares in RMB via online trading platforms.
Stockbrokers Monthly - A Few Minutes with the Asia Pacific Exchange.pdf
