“The LSE rejection alone would probably have derailed HKEX’s ambitions, but the People’s Daily article surely represents the end of any acquisition hopes, ” said Brock Silvers, managing director at Kaiyuan Capital.
LONDON: The Hong Kong bourse’s unsolicited takeover bid for the London Stock Exchange Group Plc (LSE) suffered a further setback after China praised the British firm’s scathing rebuff.
The official People’s Daily wrote last Saturday that there are “persistent worries” about Hong Kong given the current unrest, and lauded the LSE for citing its existing tie-up with the Shanghai Stock Exchange as its preferred way to access China. With almost half the pursuing bourse’s board nominated by Hong Kong’s Beijing-backed chief executive, the slapdown from the mouthpiece of the Communist party signals growing resistance to the bid.
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