Date
18 October 2017
HKEx is still digesting the London Metal Exchange, which it snapped up in 2012. Photo: Bloomberg
HKEx is still digesting the London Metal Exchange, which it snapped up in 2012. Photo: Bloomberg

HKEx watching British-German exchange merger talks

Hong Kong Exchanges and Clearing Ltd. (00388.HK) is keeping a close eye on merger discussions between London Stock Exchange Group plc and Deutsche Börse AG that could create Europe’s largest exchange.

HKEx chief executive Charles Li Xiaojia told reporters Wednesday the potential transaction puts the prospect of a “pan-European exchange powerhouse on the horizon”.

But he declined to comment on whether the Hong Kong exchange operator would consider making a competing bid, The Wall Street Journal reports.

Li said HKEx isn’t looking at any “LME-type acquisitions”, referring to its purchase in 2012 of the London Metal Exchange, one of the world’s biggest commodities trading venues.

“Unlike many other companies, we actually have a lot of things that’ll continue to sustain our growth into the future,” he said.

“Whenever opportunities arise that complement that growth, we’ll be looking at it, but we’re not actively looking for something just to add onto our portfolio.”

Li’s comments came as HKEx reported that its net profit for 2015 rose 54 percent to HK$7.96 billion (US$1.02 billion) from HK$5.17 billion a year earlier.

Average daily trading volume rose 52 percent.

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