Hong Kong Stock Exchange CEO Says Bitmain, Canaan, and Ebang Business Unsustainable

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Hong Kong Stock Exchange CEO Says Bitmain, Canaan, and Ebang Business Unsustainable

The head of the Hong Kong Stock Exchange (HKEX) believes that the activities of the largest manufacturers of mining equipment are unsustainable for an IPO.

When asked about the listing of leading crypto companies, Charles Li Xiaojia stated that for this to happen, their initial business model must be solid. According to him, even if they earned billions of dollars in one direction, but decided to change their occupation, without showing the previous results, this is an indicator of the nonviability of their main activity..

Although he did not name specific companies, Bitmain Technology, Ebang International Holdings and Canaan Creative have submitted applications to HKEX today. So far, none of them have received approval, although they are awaiting decisions from September, June and May 2018, respectively..

Hong Kong Stock Exchange CEO Says Bitmain, Canaan, and Ebang Business Unsustainable

Charles Li Xiaojia said that he will adhere to the principle of market adaptability in studying applications and consider whether firms in core businesses will be able to profit after the industry becomes regulated..

According to some reports, HKEX does not want to approve the applications of crypto giants due to the crisis in the virtual currency market and the characteristic high level of risks in this area. Although this is what forces the companies to diversify their activities. Last year, Bitmain announced plans to move into the field of artificial intelligence..

Awaiting the decision of the Hong Kong Stock Exchange, Ebang has already resubmitted its draft initial public offering, indicating a significant deterioration in financial results, and Canaan is considering an IPO in the United States..

Regulatory decisions play an important role in the formation of the cryptoindustry. Therefore, in order to avoid rejection of the application to launch a Bitcoin ETF, the CBOE decided to temporarily withdraw it..

text: Ivan Malichenko, photo: ibmi.taiwan-healthcare