The executive director of the Hong Kong Exchange (HKEX) has ambiguously commented on the situation regarding the IPO of crypto-companies, as reported by the CoinDesk news agency.
New comments from the Executive Director of the Hong Kong Exchange (HKEX) have significantly weakened the hopes of cryptocurrency companies for a successful initial public offering of IPOs.
On January 24, Tencent Finance.QQ news portal published a report by HKEX CEO Charles Li Xiaojia. The report states that companies seeking listing on the HKEX should have a sustainable business model that is impossible in the high volatilityVolatility
– is a financial term that means a statistical indicator of price change. In the cryptocurrency world, it is used by traders as an indicator for managing financial risks. That is, it is a measure of trade risk and as a financial analytical tool for gambling. Details of the cryptocurrency market.
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Cryptocurrency companies: the possibility of listing on HKEX
Although Lee did not talk about specific crypto-companies, he generally reported on the HKEX listing requirements for IPOs. Three leading crypto-mining companies, Bitmain, Canaan and Ebang, have applied for the listing of HKEX, but none of them has received approval until today.
According to the report of Charles Li Xiaojia, HKEX will adhere to the principle of market adaptability when considering applications from companies for IPO, including crypto-companies.
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"For an IPO (...) the basic principle of HKEx is the availability of listing. Is the business model suitable for investors for listing?" – Charles Li Xiaojia.
Comments from the HKEX for IPO cryptocurrency companies are far from positive, especially considering the volatility of the crypto-sphere. Recall that the Bitmain company filed an application for an IPO in HKEX in September last year, and Canaan and Ebang filed in May and June, respectively. Ebang re-published its IPO prospectus project last month, but the statement indicated a significant decrease in revenue and gross profit in Q3 2018.
Editor: Pereyidenko Ihor