London in Pax Sinica
Li also took the liberty to comment on why previous attempts at a similar collaboration between American and European exchanges failed, citing a significantly weaker outlook in such an alliance compared to one with Hong Kong.
«Synergy can only go so far. But here we are talking about unlocking a frontier [between London and Hong Kong],” Li said.
«We think it’s time to think big. This is the time in our view when the world is becoming more polarised from east to west. We need to have an unrivaled global financial infrastructure across all global currencies and all time zones.»
«Everything is Open to Discussion»
Whilst Li said this was peak timing for the merger, he also recognized the improbability of the deal citing approval by regulators in the U.K., U.S. and Europe as a key hurdle, especially given the HKEX’s «unusual governance structure».
«If I stand in David’s shoes, I will reject Charles Li,” Li said, jokingly.
The Hong Kong government is the largest HKEX shareholder at six percent and holds the power to appoint half of the board.
«We have a slightly unusual governance structure. Today if this transaction is approved, we would have created a global company. The structure could have been completely different. Everything is open to discussion.»
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