Hong Kong Startup News Roundup - 20 September 2021

Chinese bank's $1.3bn offering rekindles Hong Kong IPO market

A Chinese bank is breathing life back into Hong Kong's initial public offering market after Beijing's clampdown on the technology sector crippled volumes for much of the third quarter. Dongguan Rural Commercial Bank, which finances farmers, agricultural groups and small companies, hopes to raise 10 billion Hong Kong dollars ($1.29 billion) in an offering that opened for subscriptions on Thursday. A successful IPO by the bank, the fifth-largest of China's rural lenders, would mark the first $1 billion offering in the city since electric vehicle maker Li Auto's $1.5 billion fundraising in early August.

Can BuyHive Disrupt The Global Procurement Space With Its “Alibaba+UpWork” Model

BuyHive was set up in 2019 by Minesh Pore, Michael Hung and Brent Barnes to address the growing demand of global buyers who want to source quality products without huge overheads. The company offers an ecommerce platform (theBuyHive.com) and a network of freelance procurement consultants. The startup aims to go for its first round of funding in a few months to expand its platform for sourcing professionals.

Be it ready-to-wear collections, home décor/household items or even medical equipment (in some cases), Indian retailers often source a large chunk of these products from neighbouring countries and regions as well as other global markets due to superior product quality and cost-effectiveness.

Hong Kong proposes new listing regime for SPACs with tight restrictions

Hong Kong on Friday proposed changing its rules to allow SPACs to list, but with tighter restrictions than elsewhere as it becomes the latest to tap the desire for such investment vehicles even as the frenzy that began last year wanes.

The Stock Exchange of Hong Kong has been working on proposals for SPACs since early this year, but one challenge, market participants say, has been finding a way of allowing such listings without undermining efforts by the exchange and regulator to combat illegal practices linked to the formation and trading of shell companies with which Hong Kong grappled in the last decade.

Procure-to-Pay Startup PayMate Eyes Funding to Shore Up Reserves

Indian procure-to-pay startup PayMate is seeking to raise $4 million, including a lead investment of $2 million from U.S.-based Felicitas Equity Fund, as well as additional funds from Astor Management and CXI Valley I, Inc42 reported. In 2019, according to Crunchbase, FinTech PayMate was invested in by Visa, Recruit Strategic Partners, Brand Capital and Mayfair 101.

Describing the business, PayMate CEO Ajay Adiseshann’s LinkedIn profile stated: “PayMate works with large enterprises to facilitate seamless and real-time payments to vendors, and from customers. It enables small and medium enterprises to manage their business, cash flow and payments from a cloud based platform. It also enables banks to provide mobile banking services to their customers.”

Hong Kong Central’s biggest landlord signs crypto firm as tenant

Hongkong Land Holdings Ltd., the biggest landlord in the heart of the Asian financial hub, signed a lease with a crypto asset firm for the first time as the century-old company moves to embrace the emerging sector. Hong Kong-based HashKey Group will take up a floor in Three Exchange Square owned by Hongkong Land, the real estate firm said in a statement Wednesday. The lease represents an evolution of the company’s portfolio in the Central district that brings together traditional financial institutions with blockchain and virtual asset firms as demand for space from foreign banks declines amid the pandemic.

"The SFC’s recent decision to regulate digital asset exchanges in Hong Kong gives us confidence that this new asset class has a regulatory framework, and therefore a future within the finance industry,” said Neil Anderson, director and head of office, commercial property at Hongkong Land, referring to the city’s finance regulator.