Mega bourse mergers less of a threat as exchanges and markets have morphed
LAST month, Hong Kong Exchanges and Clearing Ltd (HKEx) made a surprise US$39 billion bid for 300-year-old London Stock Exchange (LSE).
Some observers say if successful, the move could position Hong Kong as a financial link to the West. It could help reinforce its hub status at a time of high tension in the Special Administrative Region of the People's Republic of China, where anti-government protestors have been out in the streets the last four months decrying Beijing's political influence.
The news did little to permanently rattle the share prices of the Singapore Exchange (SGX) or any other major exchanges, reflecting the consensus that a successful tie-up between LSE and HKEX looked like a long shot because of regulatory and political hurdles. Even if HKEx manages to succeed in its shareholders' campaign, it will face resistance from financial regulators, antitrust and other authorities including UK courts and the UK government on national security concerns.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Capital Markets & Currencies
South Korea’s probe alleges 211.2 billion won of illegal short trades
Asia: Markets build on rally as US jobs data boost rate cut hopes
Zero-day options boom will only grow even as some investors fear disaster
Singapore stocks open in the black on Monday; STI up 0.3%
Stocks to watch: Singtel, Venture Corp, ARA H-Trust, YHI International, LHN
Europe: Shares end higher on tech support; banks slide