HKEX establishes International Advisory Council
February 21, 2019

Hong Kong Exchanges and Clearing Limited (HKEX) has today (Thursday)  announced the establishment of an International Advisory Council (the Council). It says the Council comprises experts in economics, business and finance from around the world who will act as advisors to the Board of Directors of HKEX (the Board).

Stuart Gulliver, former Group Chief Executive and Chairman of the Group Management Board of HSBC Holdings plc, Mary Schapiro, Vice Chair for Global Public Policy and Special Advisor to the Founder and Chairman of Bloomberg LP, and former Chair of the US Securities and Exchange Commission, and Joseph Tsai, Executive Vice Chairman of Alibaba Group, have been appointed as founding members of the Council, which will be chaired by Laura M Cha, HKEX Chairman.

HKEX says it will continue to develop and grow and the establishment of the Council will provide the Board with expert insight and perspective. The Council will meet at least twice a year and contribute to HKEX's understanding of our global environment, including developments in major international financial centres, the evolving global geopolitical landscape, advancements in technology and global policy and regulatory initiatives.

Earlier, HKEX announced that it has signed a letter of intent to acquire a majority stake in a Shenzhen-based specialist financial markets technology firm. It said the proposed acquisition will support HKEX's strategy to further build its financial markets technological capabilities, at a time of rapid change in the global exchange landscape.

HKEX intends to acquire a 51 percent equity interest in Shenzhen Ronghui Tongjin Technology Co Ltd (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 registered capital of Ronghui Tongjin.

Ronghui Tongjin is a subsidiary of Shanghai-listed Shenzhen Kingdom Sci-Tech Co Ltd (Kingdom), one of China's leading financial technology companies, with over 6,000 employees. Kingdom provides information technology services to Chinese securities, asset management and integrated finance firms as well as regulatory agencies.

HKEX says that Ronghui Tongjin, with a team of around 200 employees, has strong research and development capabilities in the financial markets technology services space, and will help reduce its own reliance on third-party vendors, help manage development costs and reduce implementation risks.

HKEX says it will also benefit in the longer term from Ronghui Tongjin's network and technological capabilities to develop future IT strategic initiatives, tapping into new market segments and client bases.

It is expected, subject to the deal's completion, that Kingdom's equity interest in Ronghui Tongjin will fall to 29.4 percent from the current 60 percent, while the equity interest of Ronghui Tongjin's employees will fall to 19.6 percent from the current 40 percent.

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

 

 





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Hong Kong Exchanges and Clearing Limited (HKEX) has today (Thursday)  announced the establishment of an International Advisory Council (the Council). It says the Council comprises experts in economics, business and finance from around the world who will act as advisors to the Board of Directors of HKEX (the Board).

Stuart Gulliver, former Group Chief Executive and Chairman of the Group Management Board of HSBC Holdings plc, Mary Schapiro, Vice Chair for Global Public Policy and Special Advisor to the Founder and Chairman of Bloomberg LP, and former Chair of the US Securities and Exchange Commission, and Joseph Tsai, Executive Vice Chairman of Alibaba Group, have been appointed as founding members of the Council, which will be chaired by Laura M Cha, HKEX Chairman.

HKEX says it will continue to develop and grow and the establishment of the Council will provide the Board with expert insight and perspective. The Council will meet at least twice a year and contribute to HKEX's understanding of our global environment, including developments in major international financial centres, the evolving global geopolitical landscape, advancements in technology and global policy and regulatory initiatives.

Earlier, HKEX announced that it has signed a letter of intent to acquire a majority stake in a Shenzhen-based specialist financial markets technology firm. It said the proposed acquisition will support HKEX's strategy to further build its financial markets technological capabilities, at a time of rapid change in the global exchange landscape.

HKEX intends to acquire a 51 percent equity interest in Shenzhen Ronghui Tongjin Technology Co Ltd (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 registered capital of Ronghui Tongjin.

Ronghui Tongjin is a subsidiary of Shanghai-listed Shenzhen Kingdom Sci-Tech Co Ltd (Kingdom), one of China's leading financial technology companies, with over 6,000 employees. Kingdom provides information technology services to Chinese securities, asset management and integrated finance firms as well as regulatory agencies.

HKEX says that Ronghui Tongjin, with a team of around 200 employees, has strong research and development capabilities in the financial markets technology services space, and will help reduce its own reliance on third-party vendors, help manage development costs and reduce implementation risks.

HKEX says it will also benefit in the longer term from Ronghui Tongjin's network and technological capabilities to develop future IT strategic initiatives, tapping into new market segments and client bases.

It is expected, subject to the deal's completion, that Kingdom's equity interest in Ronghui Tongjin will fall to 29.4 percent from the current 60 percent, while the equity interest of Ronghui Tongjin's employees will fall to 19.6 percent from the current 40 percent.

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

 

 



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