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On Tuesday (8 October) shares in the London Stock Exchange (LSE) suffered their biggest one-day correction since the Brexit referendum in 2016 when Hong Kong Exchanges and Clearing decided to walk away from its unsolicited £32bn bid for the business.

The surprise offer, which was mostly for shares not cash, got short shrift from the management of LSE which said the bid fell “substantially short” of an appropriate valuation for the prized exchange. In an open letter the LSE also referred to the bid as “inherently uncertain” thanks to Hong Kong’s questionable future as a strategic gateway.

The LSE is currently engaged in a £22bn deal to buy the US financial data provider Refinitiv and was expected to abandon this acquisition by the Hong Kong stock exchange. It remains to be seen if a major US exchange will make an approach for the LSE.