Hong Kong Stock Exchange to Launch Blockchain-Powered Market in 2018

The Hong Kong Stock Exchange (HKEX) is planning to launch a blockchain-powered private market aimed at helping smaller firms obtain financing.

Aug 1, 2017 at 3:35 p.m. UTC
Updated Sep 13, 2021 at 6:47 a.m. UTC

The Hong Kong Stock Exchange (HKEX) is planning to launch a blockchain-powered private market aimed at helping smaller firms obtain financing.

HKEX chief executive Charles Li detailed the plan, which would play out through a separate venture dubbed HKEX Private Market, in an August 1 note.

The disclosure came in response to a question about tapping local technology resources – and whether Hong Kong is positioned to do so. Though no firm launch date has been disclosed, Li said that the platform would kick off sometime in 2018.

"The Private Market will serve as a 'nursery' for early stage companies before they are ready to enter public markets," he explained. "They can conduct pre-IPO financing and other activities on an off-exchange venue not under the regulatory remit of the Securities and Futures Ordinance."

previously, Li has been eyeing on the blockchain technology to upscale the operation of HKEX. Earlier this year, during a media event, Li disclosed a three-to-four year plan to reduce costs at the exchange, which could ultimately move to integrate the tech into its post-trade systems.

Hong Kong's central bank has also tested the tech, disclosing in April that it had been testing a digital currency along with several unnamed banks and distributed ledger startup R3.

Stock market graph image via Shutterstock

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
Crypto Hedge Fund Elwood Closes $70M Funding Led by Goldman Sachs and Dawn Capital

Dawn Capital co-led the Series A alongside CommerzVentures, Barclays, Galaxy Digital Ventures and BlockFi Ventures.

Dawn Capital co-led the Series A alongside CommerzVentures, Barclays, Galaxy Digital Ventures and BlockFi Ventures.

2
Australian Tax Office Warns Crypto Investors on Capital Gains Obligations

The rate of capital gains tax on digital assets in Australia is determined by an investor's income tax rate.

The rate of capital gains tax on digital assets in Australia is determined by an investor's income tax rate.

3
Digital Euro Could Come Out Within Four Years, ECB's Panetta Says

Peer-to-peer payments among friends could be a first test case, though no final decision’s yet taken

Peer-to-peer payments among friends could be a first test case, though no final decision’s yet taken

4
Luna Foundation Guard Left With 313 Bitcoin After UST Crash

The announcement comes after reports that over a billion dollars of Terra’s bitcoin reserves are unaccounted for.

The announcement comes after reports that over a billion dollars of Terra’s bitcoin reserves are unaccounted for.