Articles: Exchanges merger

Terms of Engagement
Terms of engagement have now been agreed between the Hong Kong Stock and Futures Exchanges. In this article, for the first time shows you what the combined profits and earnings per share of the HKEC have been. This deal is so sweet that almost nobody will accept the partial cash alternative of $3.88 per share. We tell you what the shares are really worth, particularly in the absence of effective tariff controls - you will be amazed! (6-Aug-1999)
Icing on the Cake
In the latest development in the proposed merger of the Hong Kong Stock and Futures Exchanges, it has been suggested that HKEC will underwrite the value of trading rights by offering to buy them back from brokers, in addition to giving them shares in the new company. We explain how future technology will create a surplus of trading rights, and that HKEC will end up buying something that nobody else wants. We argue the case for nationalisation of the exchanges. (26-Jul-1999)
Government Concessions Widen Value Gap
The Hong Kong exchanges are at loggerheads over their merger valuations, with a key sticking point being the value of HKSCC. The Government is responsible for this, having made a U-turn on its earlier position that HKSCC should not be attributed any value. This is one of a series of concessions they have made in an effort to avoid a showdown with small brokers. We take you through the valuation debate and the wider issues discussed in the latest policy paper. (13-Jul-1999)
Serving the Public Interest?
With the negotiations on the proposed merger and flotation of the Stock Exchange and Futures Exchange slowly inching their way forward, we take another look at the inevitable problems that are created by floating a monopoly which on the one hand has a duty to maximise returns to its shareholders while on the other is supposed to serve the public interest. (14-Jun-1999)
Flotation of Exchanges not in the Public Interest
Why the HK Government's proposal to merge the stock and futures exchanges is commendable, but the proposal to float the merged entity is against the public interest. (3-Mar-1999)
Financial Secretary Donald Tsang announces SCEFI (para 48 of budget) and exchanges merger (para 50)
HK Government, 3-Mar-1999
Policy paper on securities and futures market reform
HK Government, 3-Mar-1999

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