Stock prices on the Hong Kong Exchanges and Clearing (HKEx) have dropped significantly. Some analysts suggest it is because of the merger mania among world exchange operators.
The possible implications are alarming.
Hong Kong has long been proud of it status as a leading financial centre. Its links to the mainland further increase the attractiveness of its financial market to both Chinese and foreign enterprises.
But the city is losing its edge. The recent merger of other leading world stock exchanges will bring even fiercer competition to attract listings from large enterprises. The continuing trend towards globalisation will further expose the HKEx's limitations.
Some people have suggested that the HKEx should merge with the Shanghai Stock Exchange (SSE) to regain the leading role in Asia. But there are structural differences between HKEx and SSE, and the trading currencies are not synchronised.
Our role as a leading global financial centre is fading. Our edge over our competitors in many areas no longer exists. How can we avoid being marginalized?