For Hong Kong, the deal faltered in part on political concerns. The London Stock Exchange cited the Hong Kong government’s sway over the Asian’s exchange’s parent company as a potential regulatory stumbling block. The territory’s government names a majority of the members of the Hong Kong exchange’s board. Hong Kong law also prevents anyone from acquiring more than 5 percent of the shares in the Hong Kong exchange without the local government’s approval. Hong Kong has been roiled by four months of increasingly violent protests over the city’s relationship with the mainland, prompted by Beijing’s heavier hand in its affairs.

Source: New York Times October 08, 2019 01:18 UTC