The head of the Hong Kong stock exchange (HKEX) has addressed queries regarding initial public offering (IPO) listings amid confusion over Bitcoin mining giant Bitmain’s application. English-language newspaper South China Morning Post (SCMP) reported the comments on January. 24.
Speaking at the ongoing World Economic Forum (WEF) in Davos, Switzerland, HKEX chief executive officer Charles Li Xiaojia said that it had been vital IPO candidates were consistent regarding their business offerings.
“If an organization created billions of U.S. dollars through Business A, but suddenly said it'll do Business B without showing any performance, or said Business B is best, then I don’t suppose the Business A featured in their application are sustainable,” the SCMP quoted him as saying. Xiaojia continued:
“Besides, if regulators were hands off [on Business A] within the past however can regulate it in the future, will you be able to continue the business and still create cash from it?”
Xiaojia didn't comment on Bitmain specifically, whereas journalists had mentioned the corporate by name once asking for clarification.
Having made the bulk of its revenue from mining hardware sales in the half of last year, Bitmain has faced reported layoffs and lawsuits, because the downtrend in Bitcoin (BTC) prices made mining considerably less profitable. Bitmain additionally declared plans in May 2018 to turn towards the world of artificial intelligence (AI) against the background of Chinese scrutiny of the crypto industry.
Bitmain had planned to conduct an IPO in Hong Kong throughout the latter half of 2018. When money performance figures steered the corporate was in trouble, however, rumors began surfacing that regulators were also not ready to let a cryptocurrency IPO pass.
Another mining entity, Canaan creative, let similar metropolis plans lapse in November, however, has since same it's trying to finish the process in New York.
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