The Hong Kong Stock Exchange (HKEX) may be looking into some strategic takeovers. A recent Bloomberg article from Friday (Sept. 21) indicated that HKEX is considered technology and blockchain-related takeovers, according to "people with knowledge of the matter." Per Bloomberg's report, their anonymous sources said HKEX is looking into these takeovers as a new strategy due to concerns over the struggling trade relations between the United States and China. Sources also said that HKEX CEO Charles Li may have met up with "at least three investment banks." Li is rumored to have discussed HKEX's model and how to diversify it through "data, analytics, and blockchain sector" takeovers. The sources also suggest that the HKEX CEO may be eyeing the CME Group Inc. and Nasdaq Inc. "as possible models" for HKEX. It's mentioned by Bloomberg that Nasdaq saw a nice bit of revenue from data products (19 percent) and technology (13 percent) in 2017. In comparison, HKEX is said to have pulled in 100 percent revenue in 2017 from their clearing and trading fees. Two HKEX meetings took place earlier this month that sources said focused on their possible acquisitions. One of these meetings held September 10th and focused on HKEX senior managers discussing strategies. The other was a September 12th board meeting. It's believed that HKEX is in discussions to bring forth a three-year plan for their strategies. The launch allegedly is slated for 2019. However, CEB International Investment Corp.'s Banny Lam told Bloomberg via email that HKEX is going "in the right direction" with their strategies, but it won't be "easy to achieve the targets" they are looking at. However, he believes that HKEX can propel growth through "exploring new businesses." One recent issue for HKEX has been that they've "struggled to integrate" the London Metal Exchange which they acquired in 2012. Bloomberg also cited an "unnamed HKEX advisor" who believes the potential success with future deals is cloudy due to "industry concerns." Still, it's hard to ignore the potential role of the blockchain technology for the future. The blockchain is beginning to take on key roles within some major stock exchanges' infrastructures. For example, the Shanghai Stock Exchange (SSE) announced their plans to use blockchain technology for their security transactions. The SSE is the world's fourth-largest exchange right now. In addition, the Australian Securities Exchange (ASX) has plans for implementing the blockchain. Reports indicate the ASX may use the technology to replace their current system for equity transactions by spring 2021. All of these innovations are proof that blockchain will take on a serious role heading into the future. Based on the anonymous sources' information via Bloomberg, HKEX will find ways to tap into these blockchain tech possibilities.