Merger of Hong Kong Stock exchange and the London – Breaking News

When the financial markets are threatened by geopolitical conditions, implying that these are problems on the part of their respective governments, their way is to decrease the risk is to appeal to strengthen its foundations, allowing it to sustain itself during the crisis. This thought can be observed in the actions carried out by the Stock exchange of Hong Kong, which is offering $ 37,000 million to merge with the London Stock exchange. Begin by setting a context of the news, allowing to understand the behavior of the Hong Kong Exchanges and Clearing (HKEX) this morning Wednesday 11 September 2019, stating that currently the territory is in the midst of an internal political crisis, giving rise to the civil form insurgent groups against the government. This causes a rise in the risk on a financial level, as investors observe that there is internal instability. For these conditions, they should go to the international market, looking particularly another who needs help, as is the case of the London Stock Exchange Group (LSEG), since these have another crisis geopolitics, with the situation with the Brexit, which causes an increase in risk because investors see instability with respect to the negotiations of the output, since these prefer not to make bets blindly. The terms of the proposal on the part of the HKEX cash and shares are going to value to LSEG by 8,36 pounds per share or 29.6 billion pounds. The shares are trading at a 16 percent higher after the announcement. Stressing that LSEG has a market value of 24,000 million pounds. HKEX proposes an entry to the LSEG to the asian financial market, worked as a substitute or alternative if these are out of the european without any bargaining, fulfilling a function of contingency plan. In addition, HKEX benefits because it works as an escape from his territory and to protect its values abroad. According to the british legislation, the company must make a firm offer on the 9th of October. “The proposed combination will strengthen the businesses of both, the better positioned to innovate across markets and geographies, and to provide market participants and investors with a connectivity of global markets, unprecedented,” wrote HKEX in its statement of intent. Ending, we can observe that these bags of values they prefer to go to traditional media, as can be seen in the article, before undertaking or trust in the world of cryptocurrencies. While these countries are not so strict with the cryptography, in comparison to countries such as India, do not yet have the sufficient confidence in criptos for support of the crisis. The following two tabs change content below. I am a student of economics, interested in innovation and technological development, always faithful to that tomorrow will be a better day.

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