Market applauds HKEx's joint venture plan

Hong Kong Exchanges Clearing HKEx said yesterday that it is in talks with exchanges on the mainland to set up a joint venture company, a move that could give Hong Kong a strategic advantage as China liberalises its capital account.

The announcement came on the heels of Chinese vice-premier Li Keqiang’s visit to the city, when he unveiled plans to promote more cross-border investment between Hong Kong and China. The potential deal between Hong Kong and exchanges in Shanghai and Shenzhen marks the first time that HKEx has explicitly expressed interest in collaborating with other exchanges.

“HKEx has agreed in principle to enter into detailed...