London Stock Exchange (LSE) is opening its doors to Hong Kong firms after receiving approval from local regulators.
The move is the latest escalation in a series of moves by European and US-based exchange groups to seize opportunities in the Asia Pacific.
Hong Kong’s Securities and Futures Commission has granted LSE approval for Hong Kong firms to becomes members of LSE, granting access to the UK-based trading venue.
A connection to LSE from Hong Kong will also give access to LSE Derivatives Market, offering derivatives in UK securities and global depositary receipts.
Last week, LSE announced it had signed a deal with Chinese broker Haitong Securities to develop RMB products and open its markets to investors on mainland China.
It has also signed memoranduma of understanding with the Agricultural Bank of China, Bank of China and China Construction Bank.
It follows numerous announcements, deals and launches by major Western exchange operators in recent months and years. Deutsche Boerse, ICE and CME Group have all been heavily pushing their strategies for the Asia Pacific.
Deutsche Boerse subsidiary Eurex recently topped off a string of moves into the region by announcing it would seek to open a derivatives exchange in the region.
Alexander Justham, CEO
of London Stock Exchange, said: “This is a significant development
in further deepening the ties between London, Hong Kong and China. As
Members of London Stock Exchange, Hong Kong firms will be able to
offer their customers access to the most liquid European
“Like Hong Kong, London has always been a market open to the world and we are excited about the increasingly strong relationship being forged between these two exceptional global financial centres.”