HKEX calls its plan to create an Asian-European giant that is open 18 hours a day a “vote of confidence in London and the UK’s future role as a global financial centre” at a time that Brexit paralysis is clouding the outlook. The move also shows belief that, despite the recent protests, Hong Kong can still produce world-stage firms.
SINGAPORE (Sept 16): The audacious bid by Hong Kong’s stock exchange for its London rival is likely to fail — and that is no bad thing.
Hong Kong Exchanges and Clearing’s unexpected US$36.6 billion ($50.3 billion) offer for London Stock Exchange Group would create one of the world’s largest trading hubs. The cash-rich, equities-focused HKEX would gain an edge in fixed-income trading, but in a world where algos and bots handle much of the action, the bidder would do better to take a page from LSE’s playbook and look for bigger data sources.
