Asian exchanges: Likely partnerships and hurdles

The proposed tie-up between NYSE Euronext and Deutsche Boerse, along with the London Stock Exchange's move for Canada's TMX Group, has prompted talk the global exchange market is set to shrink to two or three big players.

But a reluctance by many Asian nations to cede control to foreign ownership and the struggle to improve capital-market integration means their exchanges are unlikely to have a seat at the table.

Here are some key facts about major Asian stock exchanges:

Tokyo Stock Exchange:

* Total market value of companies traded: 314.7 trillion yen ($3.8 trillion).

* Companies listed: 2,290

* Average daily traded value: 1.467 trillion yen (Nine months to January 1)

* Ownership: Closely held. Has no plans to list. It has 114 shareholders, mostly banks and brokerages.

* Restrictions on ownership: No specific restrictions on foreign ownership, but shareholders unlikely to approve any buyout bid. * Partnerships and plans: Has tieups with several bourses. Looking for an alliance with a bourse outside Asia in a separate time zone. Interested in linking up with higher-growth exchanges. Not in any specific deal talks now.

Hong Kong

* Total market cap of companies traded: USD 2.7 trillion.

* Total market cap of the exchange: About USD 20 billion; the world's most valuable exchange.

* Number of companies traded: 1,420

* Ownership: Listed. The Hong Kong government is the biggest shareholder, followed by other institutions such as Blackrock, Oppenheimer and JP Morgan Asset Management. About half of the board members are Hong Kong government-appointed.

* Restrictions: Anybody seeking to buy 5% or more would have to seek the Hong Kong government's approval. Any company that wishes to make a bid for the exchange will need Hong Kong government consent.

* Partnerships and plans: No significant tie-ups recently. There were talks a few years ago on Shanghai and Hong Kong stock exchanges possibly merging. However, a merger failed to materialise then due to technical and logistics issues, such as currency convertibility.

Exchange operator Hong Kong Exchanges and Clearing Ltd said it is not in talks with any other exchanges for mergers or alliances.

However, it said it may seek strategic alliances if they presented "strategically compelling benefits consistent with our focus on markets in Greater China."

Shanghai

* Total market cap of companies traded: USD 2.76 trillion

* Number of listed companies: 901

* Ownership: Unlisted. Shanghai stock exchange is a membership institution directly governed by the China Securities Regulatory Commission(CSRC). Its members include securities firms such as state-linked CITIC Securities, UBS Securities and Shenyin & Wanguo Securities.

The exchange is not open to foreign companies, which means that they cannot list on the exchange.

* Restrictions: The exchange ownership is now based on a membership structure and so, any deals might require a change into a company, equity-based structure.

* Partnerships and plans: No significant tie-ups recently. There were talks about two years ago on Shanghai and Hong Kong stock exchanges possibly merging. However, Shanghai was not keen on a merger.

Shenzhen

* Total market cap of companies traded: USD 1.26 trillion

* Number of companies traded: 1,200

* Ownership: The Shenzhen stock exchange is a self-regulated legal entity supervised by the CSRC. Like the Shanghai stock exchange, it is also based on a membership structure.

* Restrictions: The exchange ownership is now based on a membership structure and so, any merger and acquisition deals might require a change into a company, equity-based structure.

* Partnerships and plans: No significant tie-ups recently, except for some memorandum of understanding with regional bourses such as Osaka Securities Exchange to boost information exchange.

Singapore Exchange

* Total market cap: S$899.8 billion

* Number of companies listed: 785 (SGX also has a large derivatives, commodities and OTC settlement businesses)

* Ownership: The biggest shareholder is Financial Development Fund (Controlled by the central bank but it holds non-voting shares); Tokyo Stock Exchange (4.99 pct)

* Restrictions: No party can acquire 5 pct or more of SGX without clearance from the central bank.

* Partnerships and plans: SGX has offered to buy Australian bourse operator ASX for a mix of cash and shares in a deal worth USD 7.9 billion.

Bombay Stock Exchange:

* The oldest stock exchange in Asia; was established in 1875

* Companies listed have a total market capitalisation of more than $1 trillion.

* Number of companies listed: More than 4,900.

* Ownership: Unlisted. About 40% owned by brokers, 27% by foreigners and rest by corporate entities.

* Restrictions: Indian laws don't allow any single foreign entity to own more than 5% in stock exchanges.

* Partnerships and plans: Deutsche Boerse AG and Singapore Exchange each holds 5% stakes. Billionaire financier George Soros in August bought a 4% holding for about USD 35 million from Dubai Financial, part of sovereign fund Dubai Holding.

National Stock Exchange, India

* Total market capitalisation of companies traded: USD 1.6 trillion.

* Number of companies listed: more than 1,550.

* Ownership: Unlisted. NSE is 33% owned by foreigners and remaining by Indian institutions.

* Partnerships and plans: Singapore state investor Temasek bought a 5% stake in NSE in May last year from NYSE Euronext. In 2007, NYSE Euronext -- along with Goldman Sachs Group Inc, private-equity firm General Atlantic and Softbank's Asian infrastructure fund -- had paid USD 490 million for a 20% stake.

Korea Exchange:

* Total market cap of traded companies: 1,156 trillion won (USD 1.0 trillion) as of January.

* Registered companies: 778

* Ownership: Brokerage firms. Exchange unlisted.

* Restrictions: Any single shareholder who owns more than 5% is forced to sell the stake to below 5%.

* Partnerships and plans: Tieups have been mainly with bourses in southeast Asia. The exchange has to go public first before any merger moves. Has sought IPO for years but little progress has been made so far.

ASX

* Total market cap of companies traded: A$1.42 trillion ($1.41 trillion)

* ASX market cap: A$6.72 billion ($6.7 billion)

* Number of companies traded: 2,200

* Ownership: Predominantly local fund managers. Largest single holding is 4.9%.

* Restrictions: 15% shareholding cap.

* Partnerships and plans: ASX is currently subject of a USD 7.9 billion takeover bid by Singapore Exchange. The deal needs the approval of Australia's government.

The Stock Exchange of Thailand

* Total market cap of companies traded year to date: USD 250 billion

* Companies listed: 475 (Additional 65 on the smaller bourse, the Market for Alternative Investment)

* Ownership: Controlled by the Ministry of Finance. On track to demutualise by next year and seek listing in 2013.

* Partnerships and plans: Recently, the Thai bourse tied up with other Southeast Asian markets to boost competitiveness. SET president Charamporn Jotikasathira says the possibility of any merger is slim.

Bursa Malaysia Bhd

* Total market cap of the exchange operator: USD 1.4 billion

* Companies listed: 956

* Ownership: Government agencies and government-owned funds hold about 46 percent of total shares. Investment funds hold about 20%.

* Restrictions: No restrictions specific to exchanges, but Malaysia has rules on foreign ownership in strategic sectors and the ownership allowed in each sector varies.

* Partnerships and plans: Bursa said it was open to potential collaborations, but currently not in talks with any party. In 2009, it took a small stake in CME Group, the world's largest derivatives exchange, which in turn took a 25% stake in Bursa's derivatives unit.

NZX

* Total market cap of companies traded : NZ$57 billion (USD 43 billion)

* NZX market cap: NZ$209 million ($158 million)

* Number of companies traded: 148

* Ownership: The three largest holders in NZX are local fund managers, while individuals also have large stakes including NZX CEO Mark Weldon, with 5 percent.

* Restrictions: 10% shareholding cap.

* Partnerships and plans: NZX has not been linked with any recent mergers.