HKEx – Shanghai – Shenzhen JV to be "superficial"

Author: | Published: 25 Aug 2011

A proposed joint venture (JV) between the Hong Kong stock exchange (HKEx) and Shanghai and Shenzhen bourses will be nothing more than a superficial consolidation.

HKEx announced last week it was in talks with the Shanghai and Shenzhen stock exchanges with a view to establish a Hong Kong-incorporated JV company.

No binding agreement had been entered into, the statement read. "Accordingly, the joint venture may or may not proceed."

Lawyers in China believe a deep merger is unlikely.

"The legal and regulatory structure of the Shanghai and Shenzhen exchanges makes a profound consolidation with the HKEx unfeasible in the...