The Hong Kong Stock Exchange (HKEX) has revealed its plans to launch a new venture based on blockchain technology to help support early stage companies in their financing activities.

Called the “HKEX Private Market”, the new venture aims to provide early stage companies and their investors with a share registration and transfer platform based on blockchain technology so they can conduct pre-IPO financing and other activities on an off-exchange venue not under the regulatory remit of the Securities and Futures Ordinance.

“The Private Market will serve as a “nursery” for early stage companies before they are ready to enter public markets,” the HKEX said.

The announcement on the blockchain-powered venture was first made in January this year at the HKEX annual media luncheon. HKEX CEO Charles Li said at the time (as quoted by Enterprise Innovation):

“We want to use this private market to attract all early-stage companies to register and to put them into HKEX's private market system.

"The Hong Kong private market is going to be blockchain technology-enabled.”

According to the latest announcement, the HKEX plans to launch the private market in 2018.

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