The CEO of the Hong Kong Stock Exchange (HKEX), Li Xiaojia, said that companies that are applying for an IPO must demonstrate a “sustainable” business model. A radical change of activities, in his opinion, can only indicate the absence of such. It is reported by CoinDesk.
Responding to a question about the requests of mining companies, Xiaojia stressed that it is important for HKEX to understand that, despite the change in direction, the first business model still makes a profit. At the same time, according to him, during the consideration of applications, the exchange assesses the adaptability of companies to changing market conditions.
Manufacturers of mining equipment Bitmain, Canaan Creative and Ebang have submitted IPO applications for HKEX, but still have not received approval.
Earlier, the media have already reported that the HKEX is concerned about the unstable situation in the cryptocurrency market.
It should be added that OKCoin received HKEX approval for the purchase of a 60.49% stake in LEAP Holdings Group, a public company, which may allow it to enter the stock exchange without an IPO soon.