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
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...