Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce the completion of its acquisition of a 51 per cent equity interest in Shenzhen Ronghui Tongjin Technology Co Ltd (Ronghui Tongjin), a specialist financial markets technology firm.
Shenzhen-based Ronghui Tongjin becomes a subsidiary of HKEX Group following the acquisition, with Shenzhen Kingdom Sci-Tech Co Ltd, one of China’s leading financial technology companies, and employees of Ronghui Tongjin retaining equity interests of 29.4 per cent and 19.6 per cent, respectively, in the technology firm.
Ronghui Tongjin, with a team of around 200 employees, has strong research and development capabilities in the financial markets technology services space, and will reduce HKEX’s reliance on third-party vendors, help manage development costs and reduce implementation risks.
“This investment marks a significant milestone in expanding our technology resources and forms a key part of our broader Strategic Plan to develop strong alliances with technology partners,” said HKEX Chief Executive Charles Li.
“We warmly welcome our colleagues at Ronghui Tongjin to the HKEX family, as we continue to work towards leveraging technology for our future growth,” he said.
Hong Kong Exchanges and Clearing Limited (HKEX) is one of the world’s major exchange groups, and operates a range of equity, commodity, fixed income and currency markets. HKEX is the world’s leading IPO market and as Hong Kong’s only securities and derivatives exchange and sole operator of its clearing houses, it is uniquely placed to offer regional and international investors access to Asia’s most vibrant markets.
HKEX is also the global leader in metals trading, through its wholly owned subsidiaries, The London Metal Exchange (LME) and LME Clear Limited. This commodity franchise was further enhanced with the launch of Qianhai Mercantile Exchange, in China, in 2018.
HKEX launched the pioneering Shanghai-Hong Kong Stock Connect programme in 2014, further expanded with the launch of Shenzhen Connect in 2016, and the launch of Bond Connect in 2017.