Nasdaq looks to China

The Nasdaq is going global

The technology-dominated US Nasdaq stock market is reportedly seeking to expand an alliance with the Hong Kong Stock Exchange.

The aim is to create a new exchange called the Nasdaq China/Hong Kong.

The move comes at a time when more and more global markets are seeking alliances as stock trading becomes increasingly international.

Nasdaq is the second largest US stock market, and Hong Kong is the second biggest Asian market after Tokyo.

"We are talking at the moment about expanding our relationship with Hong Kong," said Frank Zarb, chairman of the National Association of Securities Dealers, which owns the Nasdaq.

"Those are real discussions that are underway," he was quoted as saying by Reuters.

Hong Kong trading

His comments come after seven of the largest companies listed on the Nasdaq started trading on the Hong Kong Stock Exchange in a pilot programme.

Intel, Cisco, Microsoft, Dell Computer, Starbucks, semiconductor equipment maker Applied Materials and biotechnology company, Amgen have all started trading in Hong Kong.

Hong-Kong listed companies will also be able to list their shares on the US market.

An Asian Nasdaq market would allow investors to trade US shares when the Nasdaq is closed in the States.

Nasdaq has recently making moves to expand its global presence.

The new venture between the London and Frankfurt stock exchanges includes a tie-up with Nasdaq.

And in June, shares of Japanese companies will start trading on Nasdaq Japan, which is a joint venture between the US market and Japanese internet company, Softbank.