HONG KONG, Oct. 8 -- Hong Kong Exchanges and Clearing Limited (HKEX) said Tuesday it would not proceed with a proposal to the London Stock Exchange Group plc (LSEG) to combine the two companies.

The HKEX said it still believes that the combination is strategically compelling but is disappointed that "it has been unable to engage with the management of LSEG in realizing this vision."

The LSEG announced the rejection decision soon after the HKEX made the merger proposal on Sept. 11.