Hong Kong and London: two countries in chaos would merge their bags creating a financial power

Last Wednesday 11/09 the somewhat unexpected offer was announced by Hong Kong Exchange & Clearing Ltd, the stock market and Hong Kong futures trader, offered its counterpart in London, that is London Stock Exchange Group Plc, to buy your bag worth US $ 36.6 billion. Which would consequently create the largest stock trading center in the world. Apparently Hong Kong wants to go further and be the next world power of capitalism: Why not do it with the country that is the financial center of Europe and will explode in the case of Brexit?

Nothing of Wall street Not even the Chinese market. This investment by the hongkoneses It would be advantageous from many points of view. Starting because both are rich in cash and could complement each other in terms of work. Although we must also bear in mind that both cities, both London and Hong Kong are in the midst of political and economic chaos today. That for one it was unleashed since the beginning of the debate on the exit agreement of the European Union, while on the other it began with protests over the presence of the Chinese regime in the territory.

Many say that this will not be possible to carry forward. However this Thursday 12/09 a source close to the British company spoke with Reuters and assured that the board of the London Stock Exchange will meet these days to evaluate and make a decision regarding the Surprising offer of the Hong Kong Stock Exchange. Thus, according to what they explained from the Hong Kong Stock Exchange, the agreement would aim to create an exchange power that covers Asia and Europe that can better compete with American rivals.

It's like that Hong Kong At the time of publicizing its offer, it took hold of the serious situation in which the United Kingdom is involved with respect to the uncertainty of Brexit, assuring it that if it buys it will be the birth of a new power. On the other hand this is a clear example of that although Hong Kong is involved in constant and violent protests, can still think of a future outside of China and growth.

Recall that when the crisis broke out in the Asian country, those who did not feel it were the bitcoins, which at one time appeared as the exit to the crisis, which again demonstrates that the dependent island of China has the capacity to grow and continues to be one of the most important stock markets in the world, since it occupies the fourth place in terms of financial centers around the globe. What is also an advantage for Hong Kong, and this was presented in the proposal to London, is the close relationship with China and the yuan that is now becoming key internationally.

In the case of London, its market has almost 300 years, then experience, income and fixed clients and benchmarks that are and were used by different companies for more than 3 centuries. It also owns the Milan Stock Exchange, which although it is not large or heavy, it adds up and much. This is how the UK government said the authorities would examine "close up" The proposal, taking into account that the company in question forms a large part of the British financial system and a change of these characteristics is not something that is decided in a short time or in a few hands.

To this is added the political context where the Prime Minister Boris Johnson It is between going to prison, calling elections or returning to the European Union to re-negotiate an exit agreement. Meanwhile, the Parliament, that is to say, the most important institution in England, is closed by orders of the president himself to ensure that a new exit agreement is not treated.

But this is not all because the economy of London is not at its best either since companies are escaping from the capital they previously used as a European center and migrating to Holland or other Netherlands, which apparently are now going to be the new headquarters for the world's largest electronic companies like Sony and Panasonic or communication giants like the Bloomberg news agency, or Discovery Channel. This of course would be the end of the London stock exchange in the case of Brexit, and consequently of its economy.

Although on the other hand the question appears: Will London easily associate with Hong Kong, taking into account that behind all that exists in the Asian country is the Chinese giant? It will be necessary to see that it weighs more, if the survival of the British economy post Brexit or the association with China.

On the other hand from Hong Kong there are also restrictions since 6% of the participation of Hong Kong Exchange & Clearing Ltd, It belongs to the Hong Kong government, influenced by the Chinese regime. This means that to approve a decision of this nature, the approval of 6 of the 13 members is required."The transaction will require several regulatory approvals, which will test the global understanding of the constitution of 'one country, two systems' From Hong Kong", explained an analyst consulted by Reuters.

Something similar happened last year in the United States when the United States Securities and Exchange Commission blocked the Chicago Stock Exchange for being associated with China.

But now, in case it happens, it will be a stock exchange that will not only be active for the purchase and sale for 18 hours, since it will open in Hong Kong while in London it is still dawn, and will continue when in Asia it is already the night, but you can also save London in case of Brexit and Hong Kong from Chinese dependence. And of course increase the wheel of capitalism that does not stop spinning in countries like these, where the life of companies and the same of some individuals go through what happens when opening the stock market.