Sept. 12 (Bloomberg) -- Hong Kong Exchanges & Clearing Ltd., the world’s second-largest bourse operator by market value, will set up a financial information business in China as part of a HK$3 billion ($386 million) investment in technology.
The bourse, in the process of buying the London Metal Exchange, received clearance from Chinese authorities to set up Ganghui Financial Information Services (Shanghai) Ltd., according to a statement today. Beginning in the third quarter of 2013, the company will distribute market data from Hong Kong Exchanges.
Most information vendors in mainland China currently receive HKEx data via third-party connections, the bourse operator said in the statement. The company announced in March that it would spend HK$3 billion on technology upgrades, collectively called the Orion Technology Initiatives, over three years to boost trading speeds and expand its derivatives business amid increased competition from regional exchanges.
“The market-data hub in Shanghai will enable the delivery of broader HKEx market-data products to Mainland information vendors, and subsequently investors, through a reliable, scalable and more cost-effective infrastructure,” Chief Executive Officer Charles Li said in the statement. He will also be head of the new unit. Li’s contract was renewed for three years today, the bourse said in a separate statement.
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