HKEx announces plans for JV with Shanghai and Shenzhen bourses

Hong Kong Exchanges & Clearing (HKEx; 0388.HK), the world’s biggest exchange operator by market value, has announced plans to form a joint venture with the Shanghai and Shenzhen bourses, the Financial Times reported. While HKEx stressed that no binding agreements have been signed, a joint venture could open possibilities for index and equity derivative products, as well as new indexes. The bourse has made clear its desire to remain competitive with other international exchanges that are busily merging to take advantage of economies of scale and develop new products. The announcement follows Chinese Vice Premier Li Keqiang’s trip to Hong Kong this week, during which he stressed Beijing’s desire to have the territory become an offshore renminbi hub and unveiled measures to boost capital flow between Hong Kong and the mainland.