HKEX to buy majority stake in Shenzhen-based fintech firm

HKEX to buy majority stake in Shenzhen-based fintech firm

Hong Kong Exchanges and Clearing (HKEX) has agreed to acquire a 51% stake in a Shenzhen-based financial markets technology firm. Financial terms of the deal were not disclosed.

Shenzhen Ronghui Tongjin Technology, a unit of Shenzhen Kingdom Sci-Tech, specialises in financial exchanges, regulation technologies and data applications.

HKEX says that the firm, which employees around 200 people, has a strong R&D background and will help the exchange operator reduce its reliance on third party vendors, cutting costs and reducing implementation risks.

Charles Li, CEO, HKEX, says: “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."

The deal is slated to close in the second quarter, with Shenzhen Kingdom Sci-Tech's stake in Ronghui Tongjin falling from 60% to 29.4%.
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