Contrary to suggestions by the Shanghai mayor that a merger between the Shanghai and Shenzhen stock exchanges could happen soon, Shenzhen vice-mayor Li Decheng has hinted it could be years down the road.
Mr Li yesterday said the merger was unlikely to take place in the short term, citing the adverse impact it would have on Shenzhen. Falling revenue from securities trading was the main concern.
Earlier this month, Shanghai mayor Xu Kuangdi said China had planned to merge the clearing system for its two main stock exchanges by the middle of next year, paving the way for a unified market in Shanghai.
The development underlines the growing tension between the two stock exchanges in the restructuring of the securities industry. Analysts have suggested Shenzhen has been reluctant to compromise on the merger.
An immediate merger of the two stock exchanges would have an adverse impact on Shenzhen, Mr Li said.
'It will not be good for Shenzhen if the two exchanges were merged immediately after the formation of the second board.'
