HKEX looks to acquire a stake in Shenzhen Ronghui Tongjin
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HKEX looks to acquire a stake in Shenzhen Ronghui Tongjin 20 February 2019Hong Kong Reporter: Jenna Lomax
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Hong Kong Exchanges and Clearing Limited (HKEX) has signed a letter of intent to acquire a majority stake in a Shenzhen-based specialist financial markets technology firm.
HKEX intends to acquire a 51 percent equity interest in Shenzhen Ronghui Tongjin Technology (Ronghui Tongjin), a technology services provider that specialises in financial exchanges, regulation technologies and data applications.
The acquisition will be completed through an increase in the registered capital of Ronghui Tongjin.
Ronghui Tongjin is a subsidiary of Shanghai-listed Shenzhen Kingdom Sci-Tech Company (Kingdom).
Kingdom provides information-technology services to Chinese securities, asset management and integrated finance firms, as well as regulatory agencies.
According to HKEX, Ronghui Tongjin will help reduce its reliance on third-party vendors, help manage development costs and reduce implementation risks.
The transaction is subject to the signing of binding agreements. The parties intend to complete the transaction in Q2 2019.
Charles Li, chief executive at HKEX, said: “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.”
He added: “As committed technology partners, together we will seek to further enhance our existing capabilities, expand our reach and create growth opportunities.”
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