It seems that the Hong Kong Stock Exchange (HKEX) could be entering the blockchain world. According to a recent report from Bloomberg, the company could make some interesting purchase in the blockchain industry.
Hong Kong Stock Exchange Could Purchase Blockchain Companies
Bloomberg quotes people with knowledge on the matter saying that the exchange is considering a strategy change. Apparently, this is due to the fact that commercial links with Chinese exchanges have been paralyzed. This situation can be related to the worsening relations between the United States and China.
As per the sources, HKEX CEO, Charles Li, met with three investment banks in order to diversify the business model. Purchasing companies related to ‘data analytics and blockchain sectors’ could be one of the strategies. However, the sources decided to remain anonymous.
Additionally, the source says that Li has also been in contact with the venture capital arms of the CME Group Inc. and Nasdaq Inc. For example, in 2017, Nasdaq registered 19 percent of its 2017 revenue from data products. Moreover, it has also registered 13 percent of its revenue from market technology.
This is completely different to what HKEX has been doing. According to Bloomberg, HKEX generated 100 percent of its revenue from trading fees and clearing.
Banny Lam, head of research at CEB International Investment Corp., commented on the matter:
“The strategy is in the right direction but it is not easy to achieve the targets. HKEX needs to maintain a momentum of growth by exploring new businesses.”
The source says that the exchange could launch a three-year strategy plan starting in 2019. Nonetheless, the details are currently being discussed and nothing is closed.
In addition to it, Bloomberg informs that the HKEX struggled to integrate the London Metal Exchange. The company bought it back in 2012 and some advisors are worried about the success of future deals.
There are several exchanges around the world that are thinking about implementing blockchain technology. For example, the Australian Securities Exchange (ASX) is planning to replace its system with a newer one.
Carlos is an international relations’ analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.
