In a recent takeover bid Hong Kong tried to acquire its British counterpart, the London Stock Exchange, in a bid of about $37 billion. If the merger takes place, it would make the newly formed exchange the third-largest in the world behind the New York Stock Exchange and NASDAQ. The reason for this possible merger is the political conditions of both the countries. Hong Kong faces violent protestors opposing the form of government rule in the country whereas Britain is in turmoil due to Brexit which is set to take place very soon.
In a recent statement HKEX CEO, Charles Li, stated “We are openly expressing our admiration for the city of London and LSE so that we give all the stakeholders the opportunity to openly evaluate our transaction and conclude it is a compelling transaction." This deal is about bringing together the two markets and giving the investors a new chance. LSE had a spokesperson proclaim that the offer is very conditional and that they weren’t sure that it would take place.
Li also wants to conduct a secondary listing of the HKEX’s shares on the LSE to show their loyalty towards the merger and the country. This merger would greatly elevate the financial conditions of both the countries.