HKEX Drops $36.4B Bid for London Stock Exchange

The transcript discusses the ill-conceived nature of a cross-border deal involving the Hong Kong Stock Exchange, highlighting the lack of planning and surprise among stakeholders. It emphasizes the importance of considering shareholder interests and regulatory requirements. The deal faced significant challenges and was short-lived. Looking forward, the London Stock Exchange aims to acquire Refinitiv, while the Hong Kong Stock Exchange must strategize its future moves, potentially exploring niche opportunities.

What was a major flaw in the Hong Kong Stock Exchange's approach to the cross-border deal?

• They had too much regulatory support.

• They focused too much on niche opportunities.

• They did not consult with their shareholders.

• They had a strong plan but poor execution.

Why is it important to engage with regulators and government officials in cross-border deals?

• To avoid media scrutiny.

• To increase the deal's financial value.

• To reduce the number of stakeholders.

• To ensure compliance and smooth execution.

What is the London Stock Exchange's next step after the failed deal?

• To acquire a new stock exchange.

• To close the deal with Refinitiv.

• To focus on internal restructuring.

• To merge with the Hong Kong Stock Exchange.

What should the Hong Kong Stock Exchange consider for future growth?

• Merging with smaller exchanges.

• Focusing on large-scale acquisitions only.

• Exploring niche opportunities.

• Avoiding any future deals.

What is a potential challenge in executing exchange deals?

• They are too frequent.

• They require minimal planning.

• They have no regulatory requirements.

• They are rare and complex.