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.

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.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook