Hong Kong Exchanges and Clearing's (HKEx) mainland expansion plan has received a blow with its Shenzhen counterpart saying it has no interest in developing cross listings. HKEx set up a working group with the Shenzhen Stock Exchange in September to study closer co-operation and has expressed interest in the development of cross-border listings. In Beijing yesterday, Shenzhen exchange chairman Chen Chongzheng said his exchange had never considered such a move. 'It is impossible to develop cross-border listings between Hong Kong and Shenzhen because China still has capital controls and the yuan is not yet freely convertible,' he said. Mr Chen said competition between the two exchanges and the challenge posed by Shanghai would be beneficial because it would encourage an improvement in the quality of both markets and services. He said the Shenzhen exchange would maintain a good relationship with HKEx.