Bilingual Editorial: The proposed merger between HK and London stock exchanges
雙語社評:「港倫合併」政治阻力大 金融國際路不應卻步
文章日期:2019年10月11日

雙語社評齊齊聽

[英語 (足本收聽)] Presented by Dr CHAN, Danny Weng-kit, Lecturer of School of Professional Education and Executive Development, The Hong Kong Polytechnic University

[普通話 (足本收聽)] Presented by Mr CHOW, Raymond Wen-chun, Lecturer of Hong Kong Community College, The Hong Kong Polytechnic University

 

HONG KONG Exchanges and Clearing Limited (HKEX) has proposed to acquire the London Stock Exchange Group (LSE) for nearly $290 billion. Reactions by the UK have been cautious.

[ENG audio 1]

Over the past ten years, the mergers and acquisitions of stock exchanges have become an important global trend. To cope with challenges posed by emerging competitors as well as new technology, both HKEX and the LSE have been seeking merger partners. In terms of the aggregate market value of listed companies, HKEX and the LSE are the world's sixth and seventh biggest stock exchanges respectively. The merger will create a stock exchange that is the third biggest in the world after the New York Stock Exchange and the Nasdaq Stock Market. Charles Li, chief executive of HKEX, describes the proposal as the "union of the century". The merger will create a global market platform that operates continuously for eighteen hours every day. As The New York Times has pointed out, if the merger is successful, the US's stock exchanges will be challenged by a formidable and emboldened competitor.

[ENG audio 2]

HKEX's "proposal" is a year in the making. HKEX and the LSE have their respective strengths and as such are highly complementary. The LSE handles the trading sessions in Europe and the US, and Hong Kong, the Asian ones. London is the offshore US-dollar financial centre, while Hong Kong is the global offshore renminbi business hub. The LSE targets the fully fledged markets in Europe and the US, while HKEX mainly serves the emerging markets in Asia. In recent years, the LSE has been striving to enter the Asian market. It created the Shanghai-London stock connect with the Shanghai Stock Exchange. As for Hong Kong, as of today mainland companies account for over 60% of the overall market value of Hong Kong stocks. In recent years, HKEX has gone on an internationalisation drive not only to strengthen itself but also to prevent over-reliance on the mainland economy.

[ENG audio 3]

The status of an international financial centre is not what a city can accord to itself — the city has to earn it. And it cannot sit on its laurels. Brexit has cast a shadow over London's status as an international financial centre. Meanwhile Hong Kong, which is China's international financial centre, has been buffeted by the anti-amendment storm. It remains uncertain whether Hong Kong's status will undergo any changes in the long term. The merger of the two exchanges will not only generate synergy but also go a long way towards strengthening both regions' status as international financial centres.

[ENG audio 4]

The financial industry is at the core of modern capitalism. The symbol of a region's capital strength, a stock exchange is not only the foundation for the financial industry but also an important strategic asset. The British government has been reluctant to put the LSE in the hands of outsiders, and the proposed merger between Hong Kong and London stock exchanges has even got on the nerves of not only Britain but also the west. The Financial Times says that the LSE is inclined to reject the offer, with one of the reasons being misgivings over political risk.

[ENG audio 5]

The more internationalised Hong Kong's financial sector and economy are, the more manifest Hong Kong's uniqueness and importance will be. This will not only help enhance its competitiveness but also increase Hong Kong's bargaining power in the face of players from all sides. There might be many obstacles in the way of the Hong Kong-London union proposed by HKEX, but as Charles Li has said, one will never succeed if one does not try. As far as the element of financial internationalisation in Hong Kong is concerned, the more manifest the better. Hong Kong has to persevere in this aspect even if changes in the international situation are making the work all the more arduous.

[ENG audio 6]

「港倫合併」政治阻力大 金融國際路不應卻步

港交所提出以近2900億元收購倫敦證券交易所,英國反應審慎。

[PTH audio 1]

過去10年,證券交易所併購整合成為國際大趨勢,港交所和倫交所都嘗試尋找合併伙伴,應付新興對手和新科技帶來的挑戰。以交易所上市公司總市值計,目前港交所與倫交所分別位居全球第6及第7位,一旦合併將躍升至全球第3,只屈居於美國紐交所和納斯達克之後。港交所行政總裁李小加形容這是「世紀聯姻」,合併後將形成一個18小時持續的環球市場平台,《紐約時報》亦指出,倘若「港倫合併」成事,將構成一個敢於挑戰美國主要交易所的強大競爭對手。

[PTH audio 2]

今次港交所「求婚」,醞釀已有一年。港交所和倫交所各擅勝場,有很高的互補性。倫交所應對歐美交易時段,港交所應對亞洲時段;倫敦是離岸美元金融中心,香港是離岸人民幣業務樞紐;倫交所目標是歐美成熟市場,港交所則主要覆蓋亞洲新興市場。近年倫交所銳意開拓亞洲市場,與上海證交所建立「滬倫通」;香港方面,目前內地公司市值佔港股比重超過六成,近年港交所積極推動國際化,除了壯大自身實力,亦可避免市場過度依賴內地經濟。

[PTH audio 3]

國際金融中心地位不是自己說了算,更不能吃老本。倫敦國際金融中心地位,因為「英國脫歐」蒙上厚厚陰霾;香港作為中國的國際金融中心,受到反修例風暴衝擊,長遠會否出現變化,也是未知之數。「港倫合併」不僅可以發揮協同效應,對長遠鞏固兩地國際金融中心地位都有好處。

[PTH audio 4]

金融業是現代資本主義核心,股票交易所不僅是金融建基,更是重要戰略產業,象徵一個地方的資本實力高低。英國政府向來不太想倫交所由外人持有,「港倫合併」更觸動英國以至西方政治神經。《金融時報》指倫交所傾向「拒婚」,原因之一就是對政治風險有疑慮。

[PTH audio 5]

香港金融經濟愈國際化,愈能彰顯香港的獨特性和重要性,不僅有助提升競爭力,亦可提高香港面對各方的議價能力。港交所提出「港倫聯姻」,雖然阻力重重,然而正如李小加所言,不嘗試就絕對不可能成功。金融國際化元素在香港愈顯現愈好,就算國際形勢變化令道路變得更崎嶇,香港也要堅持。

[PTH audio 6]

明報社評2019.09.13