Hong Kong Exchanges and Clearing announced on Wednesday a $37 billion London Stock Exchange bid, but analysts said it is an uphill battle.
Analysts said that regulators might block the deal as worries about Chinese influence over financial infrastructure and reduced competition will be the impending concerns.
“This is very unlikely to pass government scrutiny. There will be significant concerns about Chinese ownership. One suspects that the UK government will view this as an unsuitable owner of such an important central element of the financial community in London,” said John Colley of Warwick Business School.
But if it materializes, it would become the world’s third-biggest stock exchange group after the New York Stock Exchange and Nasdaq when it comes to the value of companies listed on those markets.
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