Lse, Hong, Kong, Exchanges, Hong Kong, Mergers / Acquisitions / Takeovers, China (Prc), Volatile Shares / Hot Stocks, Financial And Commodity Market Operators (Trbc), Market Events, Equities Markets, Technology / Media / Telecoms, United Kingdom, Private Equity Funds, It Services And Consulting (Trbc)

Lse, Hong

Hong Kong exchange shares fall as political risks of $38 billion LSE approach weigh

Shares in the Hong Kong stock exchange fell more than 3% on Thursday as investor...

12.9.2019

Hong Kong exchange shares fall as political risks of $38 billion LSE approach weigh

Shares in the Hong Kong stock exchange fell more than 3% on Thursday as investor...

TRI.TO ). Thomson Reuters is the parent of Reuters News. That deal, which went public in late July, caused LSE’s shares to leap 15%. LSE said in a statement on Wednesday that it remained committed to the Refinitiv deal. The approach by the HKEX also comes as Hong Kong enters a fourth month of sometimes violent political protest sparked by legislation that would have drawn the former British colony closer to the Chinese legal system. The government’s handling of the protests has been criticized internationally, as has the political pressure applied by Beijing to Hong Kong companies not to support the pro-democracy movement. Cathay Pacific Airways ( 0293.HK ), for one, was ordered to suspend staff who were involved in or supported the demonstrations. Analysts said the perception of Beijing’s growing influence over Hong Kong could become a key sticking point given the government’s close links with the HKEX. The Hong Kong government holds a 6% stake in the HKEX, approves six of the 13 board members and can also stop any other shareholding rising above 5%. “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. “It will be politically tough now and in the near-term to get this through various regulatory channels,” he added. HKEX DOWNGRADE Analysts said HKEX’s share price fall reflected investor concern about the dilutive impact of the cash-and-shares offer, and scepticism the offer would succeed. “If the market thought the deal was going to go ahead, I would have expected the shares to have fallen by more than 3%, typically that’s what we’d expect for an acquirer in a deal like this,” said Michael Wu, analyst at Morningstar. Under the terms of the offer, LSE shareholders would receive 2,045 pence in cash and 2.495 newly issued HKEX shares. HKEX said it intended to apply for a secondary listing of its shares on the LSE if the deal went through. Citigroup downgraded HKEX to ‘sell’ from ‘buy’, saying the acquisition price was high and could “add downward pressure” to the exchange’s shares and valuation. Regulatory hurdles for the deal were also high, it said in its research note. Analysts however said they could see strategic logic in HKEX’s move. “We believe that bringing the largest listed exchanges in Asia and Europe together could create new revenue streams and a lot depends on how well HKEX can capitalise on this,” Daiwa Capital Markets analyst Jonas Kan wrote in a research report. Reporting by Jennifer Hughes, Sumeet Chatterjee, Alun John in Hong Kong; Additional reporting by Donny Kwok and Lukas Jobs in Hong Kong; Editing by Stephen Coates Our Standards: Read more: Reuters Top News

LSE says it will consider 'highly conditional' Hong Kong Exchange bidThe London Stock Exchange said it will consider the offer made by Hong Kong Exchanges and Clearing , which it called 'unsolicited, preliminary and...

Hong Kong Exchanges makes surprise $39 billion offer for Britain's LSE Hong Kong Exchanges and Clearing has made an unsolicited $39 billion t... No Deal This would be tragic. Not Hong Kong but the CPC behind it, Hong Kong is struggling

Hong Kong Exchange makes surprise $39 billion offer for Britain's LSE Hong Kong Exchanges and Clearing made a surprise $39 billion takeover ... Nothing to do with the price of sterling at the moment. Do it, add to my madness. brexit article50 Since China has breached joint declaration, UK should claim back Hong Hong, and take control of the HK stock market.

Hong Kong Is the Lung Through Which Chinese Banks BreatheHeard on the Street: The city’s GDP relative to China’s keeps shrinking, but that belies its role in the country’s banking system This sentence was not written in English Please tell those Mainland Chinese, who always says Hong Kong will die without China... OR China will die without the lung? FreeHongKong LiberateHongKong hongkongpolicebrutality Yes and its not china its hong kong

Hong Kong protesters pause to mark Sept. 11 Hong Kong activists called off protests on Wednesday in remembrance of the Sept.... redsteeze can we take them here and give hong kong and china the antifa ? Their CIA handlers must have told them it would be a kind, sympathetic gesture If the Democrats, the kneeling NFL millionaires, Hollywood and other radicals liked and respected America like the heroic people of Hong Kong, we would be in great shape.

China envoy raps Germany over meeting with Hong Kong activistA meeting between Germany's foreign minister and Hong Kong activist Joshua ... Come on guys he is just checking if it really feels like cold war Berlin China is desperate to undermine the legitimacy of the legitimate and peaceful HongKongProtests. XiJinping is a moron who is leading his people to ruin. StandWithHongKong Germany!



‘Tell Me About It, Stud,’ Says Pleather-Clad Elizabeth Warren On Debate Stage In Effort To Court Bad Boy Demographic

Boras to honor Kobe's wish, grant internship

Democratic candidates facing off on stage in South Carolina: Live updates

Moderators Kick Off Debate By Asking Whether Bloomberg Ready To Get Shit Rocked Again

Elena Kagan Worried She’s A Fraud After Being Only Female Justice Not Called Out By Trump

Democratic Debate Live Updates: Candidates Clash

Over 1,300 complaints were sent to the FCC about Shakira and J.Lo's Super Bowl halftime show

Write Comment

Thank you for your comment.
Please try again later.

Latest News

News

12 September 2019, Thursday News

Previous news

Detained mogul's presidential run tests Tunisia's democracy

Next news

What the World Needs Now Is More Lizzo
BREAKING: First French national dies from coronavirus The CDC has thoughts about soul patches and mutton chops. And they have to do with preventing coronavirus US soldier stationed in South Korea tests positive for coronavirus as global outbreak worsens ‘Not Just an Italian Problem’: Coronavirus Threatens Europe’s Economy Anti-Muslim violence in India reaches alarming proportions South Korea is using an app to track travelers entering the country Some St. Louisans Find Therapy, Meaning In Psychedelics As Researchers Study Benefits South Korean virus cases jump again, 1st US soldier infected How deadly is new coronavirus? It's still too early to tell Pompeo accuses China and Iran of censoring information about coronavirus outbreaks The Influence You Have: Why We're Blind To Our Power Over Others In Mubarak’s Legacy, Egyptians See the Failings of the Arab Spring
‘Tell Me About It, Stud,’ Says Pleather-Clad Elizabeth Warren On Debate Stage In Effort To Court Bad Boy Demographic Boras to honor Kobe's wish, grant internship Democratic candidates facing off on stage in South Carolina: Live updates Moderators Kick Off Debate By Asking Whether Bloomberg Ready To Get Shit Rocked Again Elena Kagan Worried She’s A Fraud After Being Only Female Justice Not Called Out By Trump Democratic Debate Live Updates: Candidates Clash Over 1,300 complaints were sent to the FCC about Shakira and J.Lo's Super Bowl halftime show Michael Hertz — You’ve Surely Seen His Subway Map — Dies at 87 US soldier in South Korea tests positive for coronavirus Amid Insults and Interruptions, Sanders Absorbs Burst of Attacks in Debate Democratic debate highlights and live news - CNNPolitics BTS 'Carpool Karaoke' just dropped and it's every bit as glorious as we'd hoped