20 August 2017
Find out more

Hong Kong Exchange plans blockchain-based share market

01 August 2017  |  11220 views  |  0 Hong kong modern buildings 4

The Hong Kong Stock Exchange is planning to launch a new private market to provide early stage companies with a blockchain-based share registration and transfer platform for the conduct of pre-IPO financing off-exchange and clear of the regulatory remit of the Securities and Futures Ordinance.

Set for launch in 2018, the HKEX Private Market will serve as a “nursery” for early stage companies before they are ready to enter public markets.

In an open letter soliciting feedback on the proposals, HKEX chief Charles Li says the new venture will aim to create a supportive ecosystem in Hong Kong for early-stage startups and their investors.

It's part of a package of measures launched by the Exchange to reform the existing Growth Enterprise Market and cater for an emerging class of 'new economy' companies, creating three separate boards with a staggered approach to regulatory restrictions. This will entail the new unrelated private market, a lightly-regulated 'New Board Pro' for professional investors, and a publicly available 'New Board Premium', with stringent listing criteria and profits requirements.

"Hong Kong has to find ways to...change its DNA. These creative and new economy companies represent the future and we have to make Hong Kong a welcoming home for these companies and their investors from China and everywhere else," says Li. "The key principle is to identify companies whose businesses are in sectors where people rather than investment capital is the key, and creativity, innovation, technology, intellectual property, and new ways of commerce in totality are the primary drivers for its growth and business successes."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Hong Kong banks back fintech career accelerator scheme

Hong Kong banks back fintech career accelerator scheme

27 July 2017  |  7699 views  |  1 comments | 6 tweets | 5 linkedin
Hong Kong to tighten cyber-security rules in wake of multiple stock hacks

Hong Kong to tighten cyber-security rules in wake of multiple stock hacks

10 May 2017  |  8848 views  |  0 comments | 14 tweets | 11 linkedin
Hong Kong exchange ponders blockchain in settlement overhaul

Hong Kong exchange ponders blockchain in settlement overhaul

26 January 2017  |  10429 views  |  0 comments | 11 tweets | 9 linkedin
HKMA to set up fintech sandbox and innovation hub

HKMA to set up fintech sandbox and innovation hub

06 September 2016  |  7509 views  |  0 comments | 15 tweets | 12 linkedin
Hong Kong securities watchdog sets up fintech contact channel

Hong Kong securities watchdog sets up fintech contact channel

02 March 2016  |  5578 views  |  0 comments | 7 tweets | 1 linkedin
HK Government goes all in on fintech

HK Government goes all in on fintech

25 February 2016  |  11835 views  |  1 comments | 36 tweets | 14 linkedin

Related blogs

Create a blog about this story (membership required)
download the paper nowvisit www.dorsum.euvisit www.niceactimize.com

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
9949 views comments | 23 tweets | 23 linkedin
Norwegian banks and startups form fintech clusterNorwegian banks and startups form fintech...
8383 views comments | 19 tweets | 23 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
7982 views comments | 10 tweets | 7 linkedin
hands typing furiouslyWhy Is Risk Analytics Important?
7874 views 0 | 3 tweets | 1 linkedin
Barclays pairs banking data with third party apps for SmartBusiness DashboardBarclays pairs banking data with third par...
7247 views comments | 15 tweets | 13 linkedin