Political risks of Hong Kong exchange's US$39 billion LSE approach takes toll on shares

HONG KONG: Hong Kong stock exchange shares fell more than 3 per cent on Thursday as investors raised concerns about the political and regulatory risks involved in its US$39 billion approach to take over London Stock Exchange .

HKEX's proposal is conditional on LSE abandoning a US$27 billion acquisition of financial information provider Refinitiv from U.S. private equity firm Blackstone and Thomson Reuters, the parent of Reuters News.That deal, which went public in late July, caused LSE's shares to leap 15 per cent on hopes Refinitiv's financial data business would boost its long-term profitability. LSE said in a statement on Wednesday that it remained committed to the Refinitiv deal.

The LSE board will meet within days to decide if it will engage with HKEX and thereby effectively ditch the Refinitiv takeover, the source added.Analysts said the perception of Beijing's growing influence over Hong Kong could become a key sticking point for an LSE takeover given the government's close links with the HKEX.

The government's handling of the protests has been criticised internationally, as has the political pressure applied by Beijing to Hong Kong companies not to support the pro-democracy movement. "The transaction will require various regulatory approvals, which will stress-test the world's understanding of Hong Kong's 'one country, two systems' constitution," said David Blennerhassett, an independent analyst writing on the SmartKarma research platform.

Singapore Latest News, Singapore Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Hong Kong exchange set to fall 3.3% after US$39 billion takeover bid for LSEShares of Hong Kong Exchanges and Clearing Ltd (HKEX) were set to fall 3.3 per cent on Thursday after the bourse unveiled a US$39 billion ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Hong Kong Exchanges proposes US$39 billion London Stock Exchange takeoverHong Kong Exchanges and Clearing Limited said on Wednesday it has made a proposal to the board of London Stock Exchange Group Plc to combine the ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Hong Kong Exchanges bids US$39 billion to take over London Stock ExchangeHong Kong Exchanges and Clearing Limited said on Wednesday it has made a proposal to the board of London Stock Exchange Group Plc to combine the ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Hong Kong Exchange in US$39 billion bid for LSE, rivaling Refinitiv dealHong Kong Exchanges and Clearing made a surprise US$39 billion takeover approach for the London Stock Exchange on Wednesday, aiming to sabotage ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

China angered after German foreign minister meets Hong Kong activistChina expressed anger on Tuesday after German Foreign Minister Heiko Maas met prominent Hong Kong activist Joshua Wong, saying that no foreign country had a right to interfere in China's internal affairs. Wong met Maas on Monday in Berlin at an event hosted by the German newspaper BILD.
Source: YahooSG - 🏆 3. / 71 Read more »

Football: Hong Kong soccer fans loudly boo Chinese national anthemHONG KONG (AP) - Thousands of Hong Kong soccer fans booed loudly and turned their backs when the Chinese national anthem was played before a World Cup qualifier match against Iran on Tuesday (Sept 10), taking the city's months of protests into the sports realm.. Read more at straitstimes.com.
Source: The Straits Times - 🏆 8. / 63 Read more »