17.3 C
Innichen
August 15, 2022
Finance Technologies

Hong Kong Exchange buys into Shenzhen fintech

Hong Kong Exchange and Clearing (HKEX) has signed a letter of intent to acquire a majority stake in a Shenzhen-based financial markets technology firm.

Financial details were not disclosed

Financial details were not disclosed

HKEX says this proposed acquisition of a 51% equity interest in Shenzhen Ronghui Tongjin Technology in China, will support its strategy to build its financial markets technological capabilities, at a time of “rapid change” in the global exchange landscape. Financial details were not disclosed.

Ronghui Tongjin specialises in financial exchanges, regulation technologies and data applications.  The acquisition will be completed through an increase in registered capital of Ronghui Tongjin.

HKEX chief executive Charles Li says global capital markets are “being propelled forward by technological developments” and the deal will improve “our existing capabilities, expand our reach and create growth opportunities”.

Ronghui Tongjin is a subsidiary of Shanghai-listed Shenzhen Kingdom Sci-Tech, a Chinese fintech firm with over 6,000 employees.

Kingdom provides information technology services to Chinese securities, asset management and integrated finance firms, as well as regulatory agencies.

Ronghui Tongjin has a team of around 200 employees and HKEX says this will help reduce its reliance on third-party vendors, help manage development costs and reduce implementation risks.

According to HKEX, it is expected, subject to the deal’s completion, that Kingdom’s equity interest in Ronghui Tongjin will fall to 29.4% from the current 60%, while the equity interest of Ronghui Tongjin’s employees will fall to 19.6% from the current 40%.

The transaction is subject to the signing of binding agreements. The parties intend to complete the transaction in the second quarter of 2019.

Hong Kong Exchange buys into Shenzhen fintech
Hong Kong Exchange buys into Shenzhen fintech
Fintech

Related posts

Video: Top fintech stories this week – 14 May 2021

Amme Jhonson

GPS secures Visa investment to fuel international expansion

Amme Jhonson

Video: Top fintech stories this week – 13 November 2020

Amme Jhonson

Leave a Comment

* By using this form you agree with the storage and handling of your data by this website.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Privacy & Policy