HKEX former chief's investment firm Micro Connect listing in city under Chapter 21 rule

An investment firm co-founded by Charles Li Xiaojia, former chief executive of the city’s bourse operator Hong Kong Exchanges and Clearing, has filed for a listing in Hong Kong under a rule tailored for investment companies to raise funds from institutional investors.

The investment firm Micro Connect International Finance Company, founded in May, plans to use the net proceeds for investment activities and general working capital.

The listing rule Chapter 21 allows investment vehicles whose principal business is investing in listed or unlisted securities to go public in the city. However, they are not eligible for trading via Stock Connect, which limits access for mainland investors, after Hang Seng Indexes Company excluded Chapter 21 companies from its family of indexes in 2019.

According to a filing on Wednesday, Li is the investment firm's sole executive director. The board also includes seven independent non-executive directors, one of whom is Romnesh Lamba, former co-president of the local operator.

Notably, Micro Connect co-founder Gary Zhang Gaobo is not listed among the directors in the filing. Li and Zhang founded Micro Connect in 2021.

HSBC Corporate Finance (Hong Kong) is the sole sponsor for the initial public offering.

STAFF REPORTER