Shanghai and HK: Strength in synergy

时间：2007-06-30 02:24:52

（单词翻译:单击）

BEIJING, June 29 -- Discovering that size does matter, stock exchanges around the world are rushing to establish alliances and partnerships1 with one another that could lead to outright2 mergers4 and acquisitions.

 

The London Stock Exchange recently announced it has bought Italy's Borsa Italiana SpA for 1.63 billion euros. Weeks before that, Tokyo Stock Exchange said it has bought a 4.99 percent stake in Singapore Exchange Ltd to enhance cooperation on derivatives6 business between the two bourses.

 

This cooperation between two Asian bourses has given a renewed impetus7 to the idea of creating a link between the Hong Kong stock exchange (HKSE) and the Shanghai and Shenzhen exchanges as many mainland companies are listed on both bourses.

 

Economists8 and analysts9 say stock exchanges are being prompted to look for partners by rising trading costs, fierce competition in wooing companies to list, fast-growing derivative5 products and the ballooning turnover10 of hedge funds.

 

"International stock exchanges are in a hurry to expand their businesses to vie for the limited capital market resources," said Sun Lijian, a professor with Fudan University.

 

"Stock exchanges are seeking cooperation in different areas to provide differential services to clients, and avoid the fierce competition with sub-market leaders," he added.

 

For example, the Tokyo Stock Exchange is beginning to focus on the derivative market instead of providing the traditional capital settlement service, which is Hong Kong's main strength.

 

Asked if similar possibilities of merger3 and acquisition exists between Hong Kong and Shanghai stock exchanges, Zhou Wenyao, the admin president of HKSE, told Security Times that there is no such possibility at the moment because the renminbi is not freely convertible11 and the mainland stock exchange has not been listed.

 

"Besides, the restriction12 of capital account has not been totally eased," said Sun.

 

But the benefits from a merger of two bourses, if it ever happens, are enormous.

 

Joseph Yam, chief executive of the Hong Kong Monetary13 Authority (HKMA), said in his recent report: "It's clear, at least to me, that there would be big advantages if the two markets were linked: overall liquidity14 would be increased, price discovery would be made more efficient, market discipline would be promoted, and it would be easier for market players, intermediaries and the authorities to manage risks."

 

The mainland is now the fourth-largest economy in the world in terms of gross domestic product, the third-largest trading nation, and the largest holder15 of foreign reserves.

 

"The creation of a channel between the two markets will allow them to function as one and enjoy the benefits of one, much larger market," he said.

 

Shanghai Stock Exchange (SSE) now ranks ninth in the world in terms of total market value and seventh by total turnover, according to statistics from the World Federation16 of Exchanges.

 

In the past six months alone, the market capitalization in SSE has increased 99 percent to 14.2 trillion yuan, while the daily turnover is up 455 percent to 133 billion yuan.

 

Meanwhile, the average daily turnover at HKSE was as high as HK$33.9 billion in 2006, up 85 percent from the year before. Its net profit was up 88 percent to HK$2.519 billion.

 

The only cooperation between the Shanghai and Hong Kong stock exchanges till now is the memorandum17 of understanding (MOU) signed in May 2002 on staff training exchange.

 

Yam said the Hong Kong stock exchange, together with the Shanghai and Shenzhen bourses, organized two working groups last year to research on how to improve the mechanism18 of an "A+H" listing, including the simultaneous trading suspension, suspension-lifting rules, and synchronous19 price quoting.

 

"If we are to achieve that channel between the mainland and Hong Kong financial markets, it will be necessary for the authorities in both jurisdictions20 to establish a working relationship between the two financial systems that will enable the country to benefit from the opportunities arising from the differences between them," said Yam in his report.

 

The bourse acquisition spree began with the New York Stock Exchange buying 91.42 percent shares of Pan-European Stock Exchange for $11 billion last June. The stock-trading platform, currently connecting New York, Paris, Brussels, Amsterdam, Lisbon and London, has an average daily turnover of $120 billion.

 
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点击收听单词发音收听单词发音  

1 partnerships ce2e6aff420d72bbf56e8077be344bc9     
n.伙伴关系( partnership的名词复数 )；合伙人身份；合作关系
参考例句：
  • Partnerships suffer another major disadvantage: decision-making is shared. 合伙企业的另一主要缺点是决定要由大家来作。 来自英汉非文学 - 政府文件
  • It involved selling off limited partnerships. 它涉及到售出有限的合伙权。 来自辞典例句
2 outright Qj7yY     
adv.坦率地；彻底地；立即；adj.无疑的；彻底的
参考例句：
  • If you have a complaint you should tell me outright.如果你有不满意的事，你应该直率地对我说。
  • You should persuade her to marry you outright.你应该彻底劝服她嫁给你。
3 merger vCJxG     
n.企业合并，并吞
参考例句：
  • Acceptance of the offer is the first step to a merger.对这项提议的赞同是合并的第一步。
  • Shareholders will be voting on the merger of the companies.股东们将投票表决公司合并问题。
4 mergers b4ab62fffa9919cbf1e93fcad6d3150c     
n.（两个公司的）合并( merger的名词复数 )
参考例句：
  • Mergers fall into three categories: horizontal, vertical, and conglomerate. 合并分为以下三种：横向合并，纵向合并和混合合并。 来自辞典例句
  • Many recent mergers are concentrated within specific industries, particularly in retailing, airlines and communications. 现代许多合并企业集中进行某些特定业务，在零售业、民航和通讯业中更是如此。 来自英汉非文学 - 政府文件
5 derivative iwXxI     
n.派(衍)生物；adj.非独创性的，模仿他人的
参考例句：
  • His paintings are really quite derivative.他的画实在没有创意。
  • Derivative works are far more complicated.派生作品更加复杂。
6 derivatives f75369b9e0ef2282b4d10e367e4ee2a9     
n.衍生性金融商品；派生物，引出物( derivative的名词复数 )；导数
参考例句：
  • Many English words are derivatives of Latin words. 许多英语词来自拉丁语。 来自《简明英汉词典》
  • These compounds are nitrosohydroxylamine derivatives. 这类合成物是亚硝基羟胺衍生物。 来自辞典例句
7 impetus L4uyj     
n.推动，促进，刺激；推动力
参考例句：
  • This is the primary impetus behind the economic recovery.这是促使经济复苏的主要动力。
  • Her speech gave an impetus to my ideas.她的讲话激发了我的思绪。
8 economists 2ba0a36f92d9c37ef31cc751bca1a748     
n.经济学家，经济专家( economist的名词复数 )
参考例句：
  • The sudden rise in share prices has confounded economists. 股价的突然上涨使经济学家大惑不解。
  • Foreign bankers and economists cautiously welcomed the minister's initiative. 外国银行家和经济学家对部长的倡议反应谨慎。 来自《简明英汉词典》
9 analysts 167ff30c5034ca70abe2d60a6e760448     
分析家，化验员( analyst的名词复数 )
参考例句：
  • City analysts forecast huge profits this year. 伦敦金融分析家预测今年的利润非常丰厚。
  • I was impressed by the high calibre of the researchers and analysts. 研究人员和分析人员的高素质给我留下了深刻印象。
10 turnover nfkzmg     
n.人员流动率，人事变动率；营业额，成交量
参考例句：
  • The store greatly reduced the prices to make a quick turnover.这家商店实行大减价以迅速周转资金。
  • Our turnover actually increased last year.去年我们的营业额竟然增加了。
11 convertible aZUyK     
adj.可改变的，可交换，同意义的；n.有活动摺篷的汽车
参考例句：
  • The convertible sofa means that the apartment can sleep four.有了这张折叠沙发，公寓里可以睡下4个人。
  • That new white convertible is totally awesome.那辆新的白色折篷汽车简直棒极了。
12 restriction jW8x0     
n.限制，约束
参考例句：
  • The park is open to the public without restriction.这个公园对公众开放，没有任何限制。
  • The 30 mph speed restriction applies in all built-up areas.每小时限速30英里适用于所有建筑物聚集区。
13 monetary pEkxb     
adj.货币的，钱的；通货的；金融的；财政的
参考例句：
  • The monetary system of some countries used to be based on gold.过去有些国家的货币制度是金本位制的。
  • Education in the wilderness is not a matter of monetary means.荒凉地区的教育不是钱财问题。
14 liquidity VRXzb     
n.流动性，偿债能力，流动资产
参考例句：
  • The bank has progressively increased its liquidity.银行逐渐地增加其流动资产。
  • The demand for and the supply of credit is closely linked to changes in liquidity.信用的供求和流动资金的变化有密切关系。
15 holder wc4xq     
n.持有者，占有者；(台，架等)支持物
参考例句：
  • The holder of the office of chairman is reponsible for arranging meetings.担任主席职位的人负责安排会议。
  • That runner is the holder of the world record for the hundred-yard dash.那位运动员是一百码赛跑世界纪录的保持者。
16 federation htCzMS     
n.同盟，联邦，联合，联盟，联合会
参考例句：
  • It is a federation of 10 regional unions.它是由十个地方工会结合成的联合会。
  • Mr.Putin was inaugurated as the President of the Russian Federation.普京正式就任俄罗斯联邦总统。
17 memorandum aCvx4     
n.备忘录，便笺
参考例句：
  • The memorandum was dated 23 August,2008.备忘录上注明的日期是2008年8月23日。
  • The Secretary notes down the date of the meeting in her memorandum book.秘书把会议日期都写在记事本上。
18 mechanism zCWxr     
n.机械装置；机构，结构
参考例句：
  • The bones and muscles are parts of the mechanism of the body.骨骼和肌肉是人体的组成部件。
  • The mechanism of the machine is very complicated.这台机器的结构是非常复杂的。
19 synchronous bqswx     
adj.同步的
参考例句：
  • The message can be used only with synchronous operations.消息只能与同步操作一起使用。
  • Synchronous machines do not easily fall out of step under normal conditions.在正常情况下，同步电机不易失去同步。
20 jurisdictions 56c6bce4efb3de7be8c795d15d592c2c     
司法权( jurisdiction的名词复数 )； 裁判权； 管辖区域； 管辖范围
参考例句：
  • Butler entreated him to remember the act abolishing the heritable jurisdictions. 巴特勒提醒他注意废除世袭审判权的国会法令。
  • James I personally adjudicated between the two jurisdictions. 詹姆士一世亲自裁定双方纠纷。

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