HKEX, London Stock Exchange bosses, locked in takeover feud, clash over whether Hong Kong is the true financial gateway to China
- The chief executives of the two stock exchanges disagreed strongly when fate threw them together at the Sibos 2019 conference in London on Tuesday
- Their war of words comes just two weeks after LSE strongly rejected Hong Kong’s unsolicited US$36 billion takeover bid
The bosses of the Hong Kong and London stock exchanges got into a war of words on Tuesday when fate brought them together at the same event in the midst of a bitter takeover battle.
Less than two weeks after the London Stock Exchange (LSE) issued a stern rebuttal of Hong Kong’s unexpected US$36.6 billion bid, the two men clashed during back-to-back sessions at a financial conference in the British capital.
At issue were Hong Kong’s status as a financial gateway to China and whether Beijing’s tight control over money leaving the country – something Hong Kong’s role relies on – will soon be a thing of the past.
Speaking first at the Sibos 2019 event, David Schwimmer, chief executive of the London Stock Exchange, continued where a rejection letter penned by the LSE chairman left off. He reiterated the UK exchange’s preference for Shanghai over Hong Kong as a partner providing access to Chinese markets.
“For the long term? For the financial centre of China? We view Shanghai as the financial centre of China,” Schwimmer said. “We value that partnership with the Shanghai Stock Exchange, we think it's mutually beneficial. In June we launched Shanghai-London Stock Connect, the first of its kind.”
