The Government may be forced to intervene in the dispute between the stock and futures exchanges to avoid a delay in its proposed market reforms, according to sources.
The Government has ordered the exchanges to reach an agreement on their valuations in a proposed merged exchange within two weeks.
However, this timetable may be difficult to achieve.
Stock exchange chairman Lee Hon-chiu yesterday hardened the exchange's resolve in the rift. He said it was not wavering in its support of the valuation by its financial adviser Merrill Lynch.
'Merrill Lynch is our financial adviser,' he said. 'Of course, we need to support its valuation.' The futures exchange apparently has no plan to compromise either. Sources said it would stick to the valuation offered by its adviser, Morgan Stanley.
'The Government has indicated that it would not like to intervene in the valuation dispute,' sources said.