Hong Kong’s stock exchange to welcome first Middle East-based firm

Hong Kong Exchanges and Clearing (0388) said it is a preliminary achievement to see the first Middle East-headquartered consumer firm to go public in the city, after months of efforts to attract global issuers.

According to HKEX's disclosure website, Softcare, a Dubai-based hygiene products company, has published a post-hearing document, indicating an imminent market debut. 

Founded by a Chinese couple, the company focuses on the development, manufacturing, and sales of baby and feminine hygiene products in markets such as Africa, Latin America, and Central Asia.

Johnson Chui King-wai, HKEX's head of global issuer services, emphasized that Hong Kong offers value-added opportunities for companies from the Middle East. 

He also noted that HKEX's newly established representative office in Riyadh, Saudi Arabia, has recently begun operations. Chui described this as officially setting foot on the ground, enhancing communication and collaboration with partners in the region.

When asked about HKEX's stance on listings for virtual asset companies, Chui stated that as a rules-based exchange, HKEX is currently researching virtual currencies. 

Chui explained that one perspective is viewing virtual currency as an application scenario, focusing on how to optimize or advance market infrastructure from an exchange's standpoint. He stressed that a fundamental principle for listing on HKEX is that the company must possess a substantive business.