Internal sources have suggested that the Hong Kong Stock Exchange (HKEX) is considering acquisitions in the blockchain and other technology sectors, according to a Bloomberg article published on September 21st.
Bloomberg cites "people with knowledge of the subject" as saying that the exchange is considering a change in strategy due to the stalemate of trade ties with trade in China, citing the deterioration in trade relations between the United States and China as a further reason for concern.
The sources reported to Bloomberg that HKEX CEO Charles Li met "At least three investment banks" to discuss the diversification of the exchange model, including a possible series of acquisitions in the "data, analysis" sectors and blockchain ". Because of the sensitivity of the issue, Bloomberg sources have asked to remain anonymous.
Li reportedly looked at the venture capital weapons of the US exchange centers CME Group Inc. and Nasdaq Inc. "as possible models", with Bloombe Rg notes that Nasdaq saw 19% of its revenue in the 2017 from data products and 13% from market technology.
In contrast, Bloomberg data indicate that HKEX generated almost 100% of its 2017 revenue from trading fees and commissions.
Bloomberg & # 39; s sources also claim that potential technological acquisitions have been "central" to two recent key HKEX meetings – a strategic discussion with executives on September 10th and a board meeting. September 12th. They report that the exchange is due to the launch of three annual strategic plan from 2019, details of which are currently under discussion.
Banny Lam, head of research at CEB International Investment Corp., told Bloomberg in an e-mail that:
"The strategy is in the right direction but it is not easy to achieve the goals. of growth exploring new businesses. "
According to Bloomberg, HKEX has" struggled to integrate "the 2012 acquisition of London Metal Exchange, and the article quotes an unnamed HKEX advisor saying that there are" concerns of sector "surrounding the success of future agreements.
As reported earlier, within China itself, the blockchain raided the same infrastructure as the major stock exchanges. At the start of this summer, the fourth largest stock exchange in the world, the Shanghai Stock Exchange (SSE) has launched plans to adopt technology for use in securities transactions.
The Australian Securities Exchange (ASX) is also planning to implement the blockchain to replace its current system for processing equity transactions, a switch currently scheduled for the spring of 2021.