LSE's snub of HKEX shows doubts over HK: People's Daily


  • Corporate News
  • Sunday, 15 Sep 2019

An anti-government protester throws back a tear gas canister at the police during a demonstration near Central Government Complex in Hong Kong, China, September 15, 2019. REUTERS/Jorge Silva

BEIJING: London Stock Exchange Group Plc’s rejection of a takeover proposal from Hong Kong Exchanges & Clearing Ltd. shows that there are doubts around the world over Hong Kong’s development potential, according to a People’s Daily commentary.

LSE’s letter to HKEX, which says its partnership with the Shanghai Stock Exchange is its "preferred and direct channel to access the many opportunities with China,” shows how the world views the prospects between the financial centers of Shanghai and Hong Kong, the mouthpiece of the Chinese Communist Party said late Saturday.

There is confidence in Shanghai’s growth prospects, compared with "persistent worries” of Hong Kong amid violence and calls for the city’s independence, the paper said.

Mass marches in Hong Kong opposing legislation on easing extraditions to China began peacefully in June, but have since widened into a broader movement against Beijing’s increasing grip and frequently boils into violence.

A spokesman with HKEX said there is no immediate comment on the People’s Daily’s article.

LSE on Friday rejected the takeover proposal from its Asian rival, saying the bid had "fundamental flaws.” The board of the British bourse said HKEX’s approach on Wednesday had problems in its "strategy, deliverability, form of consideration and value.”

HKEX is ready to make the case for the 29.6 billion-pound ($37 billion) takeover directly to investors.

HKEX said on Friday that LSE shareholders "should have the opportunity to analyze” the proposal in detail. - BloombergBEIJING: London Stock Exchange Group Plc’s rejection of a takeover proposal from Hong Kong Exchanges & Clearing Ltd. shows that there are doubts around the world over Hong Kong’s development potential, according to a People’s Daily commentary.

LSE’s letter to HKEX, which says its partnership with the Shanghai Stock Exchange is its "preferred and direct channel to access the many opportunities with China,” shows how the world views the prospects between the financial centers of Shanghai and Hong Kong, the mouthpiece of the Chinese Communist Party said late Saturday.

There is confidence in Shanghai’s growth prospects, compared with "persistent worries” of Hong Kong amid violence and calls for the city’s independence, the paper said.

Mass marches in Hong Kong opposing legislation on easing extraditions to China began peacefully in June, but have since widened into a broader movement against Beijing’s increasing grip and frequently boils into violence.

A spokesman with HKEX said there is no immediate comment on the People’s Daily’s article.

LSE on Friday rejected the takeover proposal from its Asian rival, saying the bid had "fundamental flaws.” The board of the British bourse said HKEX’s approach on Wednesday had problems in its "strategy, deliverability, form of consideration and value.”

HKEX is ready to make the case for the 29.6 billion-pound ($37 billion) takeover directly to investors.

HKEX said on Friday that LSE shareholders "should have the opportunity to analyze” the proposal in detail. - Bloomberg
Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 7
Cxense type: free
User access status: 3
   

Across The Star Online