HKEX to Acquire Majority Position in Chinese FinTech Company
- The exchange operator will have a 51 percent stake in Shenzhen Ronghui Tongjin Technology
Hong Kong Exchanges and Clearing Clearing Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Read this Term Ltd (HKEX), a stock exchange operator, announced on Wednesday that it is acquiring a majority stakeholder position in Shenzhen Ronghui Tongjin Technology (SRTT).
A provider of Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term and regulatory technology, SRTT is a subsidiary of Shenzhen Kingdom Sci-Tech (SKST). A gigantic company, SKST employs 6,000 people and provides an array of technological services and products to the financial services industry.
HKEX has signed a letter of intent that, assuming all of the details are carried to fruition, will see that exchange operator taking a 51 percent stake in SRTT.
SKST currently has a 60 percent stake in the firm, and that figure will fall to 29.4 percent if the deal is completed. SRTT employees, who currently have a 40 percent stake in the firm, will see their share in the company fall to 19.6 percent.
Done deal by Q2
If the two parties can finalize all of the details of the acquisition, then it should be completed in the second quarter of this year.
According to a statement released by HKEX, the acquisition is being carried out in order to improve the exchange operator's technological capabilities. The deal should also reduce HKEX's reliance on third-party vendors.
“The global capital markets are being propelled forward by technological developments, and we are very pleased to have signed a letter of intent today with Ronghui Tongjin,” said HKEX Chief Executive Charles Li. “As committed technology partners, together we will seek to further enhance our existing capabilities, expand our reach and create growth opportunities.”
Currently, SRTT has approximately 200 employees. Based in Shenzhen, a city in mainland China that borders Hong Kong, the company should be able to support HKEX by reducing development costs and integrating new technologies into the exchange operator's systems.
Hong Kong Exchanges and Clearing Clearing Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Read this Term Ltd (HKEX), a stock exchange operator, announced on Wednesday that it is acquiring a majority stakeholder position in Shenzhen Ronghui Tongjin Technology (SRTT).
A provider of Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term and regulatory technology, SRTT is a subsidiary of Shenzhen Kingdom Sci-Tech (SKST). A gigantic company, SKST employs 6,000 people and provides an array of technological services and products to the financial services industry.
HKEX has signed a letter of intent that, assuming all of the details are carried to fruition, will see that exchange operator taking a 51 percent stake in SRTT.
SKST currently has a 60 percent stake in the firm, and that figure will fall to 29.4 percent if the deal is completed. SRTT employees, who currently have a 40 percent stake in the firm, will see their share in the company fall to 19.6 percent.
Done deal by Q2
If the two parties can finalize all of the details of the acquisition, then it should be completed in the second quarter of this year.
According to a statement released by HKEX, the acquisition is being carried out in order to improve the exchange operator's technological capabilities. The deal should also reduce HKEX's reliance on third-party vendors.
“The global capital markets are being propelled forward by technological developments, and we are very pleased to have signed a letter of intent today with Ronghui Tongjin,” said HKEX Chief Executive Charles Li. “As committed technology partners, together we will seek to further enhance our existing capabilities, expand our reach and create growth opportunities.”
Currently, SRTT has approximately 200 employees. Based in Shenzhen, a city in mainland China that borders Hong Kong, the company should be able to support HKEX by reducing development costs and integrating new technologies into the exchange operator's systems.