MICT Obtains Security Trading License In China, Hong Kong Via Huapei Global Securities Acquisition

MICT Inc (NASDAQ: MICT) received the Hong Kong SFC’s (Securities and Futures Commission) approval for the completion of the acquisition of Huapei Global Securities, Ltd, which offered the company a licensed platform to facilitate the trading of securities in Hong Kong, U.S., and China exchanges for its Chinese and Hong Kong clientele.
The company acquired a 9% stake in Huapei on October 1, 2020, with the option to purchase the remaining stake pending approval. The acquisition could be finalized within the next two to three weeks. It will help the company begin the final stage testing of its trading platform app in a live environment before its subsequent launch.
China and Hong Kong-based investors accounted for 45% of total trading volume in 2017. China’s online retail securities market has expanded from $1.8 trillion in 2012 to $12.7 trillion in 2017, at a 47.8% CAGR. The market is anticipated to touch $30.3 trillion by 2022. China’s 1.4 billion population, including over 400 million millennials and 325 million Generation Z, could form the potential customer base.
The acquisition will be pivotal to the customer acquisition. Additionally, the company has hired a seasoned management team to attract potential customers.
Price action: MICT shares were up 1.6% at $2.54 on the last check Thursday.