The CEO of the Hong Kong Stock Exchange (HKEX), Charles Li Xiaojia stated that the crypto mining companies should not chase rainbows concerning a possible listing on HKEX during the World Economic Forum held in Davos.
According to the exchange's CEO, the companies that decide to file an IPO application must demonstrate firm market positions and sustainable business model. Charles Li Xiaojia did not name the companies, though this comment followed to the question about his outlook for the crypto mining segment, including the application from Bitmain, as the local media quoted.
For reference, Bitmain, Canaan and Ebang are reportedly waiting for the IPO approval. However, no green light has been granted by now.
"If a company made billions of US dollars through Business A, but suddenly said it will do Business B without showing any performance or said Business B is better, then I don’t think the Business A featured in their application will be sustainable," South China Morning Post cited Xiaojia
At the same time, while considering applications, the exchange assesses the adaptability of companies to volatile market conditions.
The HKEX is reportedly concerned about the unstable situation in the cryptocurrency market.