Hong Kong Stock Exchange CEO Casts Question on Crypto Miner IPO Filings

New reviews from the main executive of the Hong Kong Stock Exchange (HKEX) may well have dampened the hopes of various cryptocurrency mining giants that have filed for preliminary public offerings (IPOs).

In accordance to a report from Tencent’s information portal Finance.QQ on Thursday, HKEX CEO Charles Li Xiaojia reported that firms searching for to record on the inventory exchange must have a “sustainable” enterprise product.

Even though Li did not speak about unique enterprise apps, he answered in typical about HKEX listing requirements in a reaction to a problem on the crypto miner IPO filings from the information supply. Three major crypto mining firms, Bitmain, Canaan and Ebang, have all filed to record on the HKEX, but none has been given acceptance to day.

Li reported that, if a enterprise has manufactured billions of pounds via 1 enterprise, then suddenly says it will do some other enterprise with out demonstrating previous efficiency, it could signify that the company’s 1st enterprise product is “not sustainable.”

If so, the problem for the HKEX is, “Can you nonetheless do this enterprise, can you make this revenue?”

The HKEX will “adhere to the basic principle of market place adaptability” when reviewing companies’ IPO apps, which includes all those of crypto miners, he additional.

Bitmain filed its IPO software with the HKEX in September of final yr, when Canaan and Ebang filed in Could and June, respectively.

There have already been signs that the HKEX is unwilling to approve Bitmain’s IPO, nevertheless. Last month, a individual included in the talks advised CoinDesk that the exchange is “very hesitant to actually approve these bitcoin mining firms mainly because the business is so risky.”

Ebang, on the other hand, refiled its draft IPO prospectus final month, but mentioned in the submitting that it noticed “significant decreases” in profits and gross earnings in Q3 2018.

With the delays, Canaan is now reportedly contemplating an IPO in the U.S., which could launch in the 1st 50 % of this yr in New York, even though the course of action is nonetheless in its early phases.

HKEX graphic by way of Shutterstock