News reaching us yesterday from a Chinese local news outlet states that one of its local cryptocurrency exchanges, Huobi has successfully used a back-door listing to acquire the controlling stock interest of Pantronics Holdings Ltd, an investment company based in Hong Kong.
Back-door listing to my best of knowledge is an illegal way to get access into something special or profitable without passing through normal processes. In this case, Huobi was reportedly allowed to purchase 73.73% of Pantronics Holdings Ltd, making them one of the major owners and controllers of the power-related electrical and electronic products manufacturer.
Pantronics was paused from trading its shares on the main board of the Hong Kong Stock Exchange, with the hope of receiving reward for their action as stated Rule 26 of the Hong Kong Codes on Takeovers and Mergers.
However, the exchanges CEO, Li Lin announced to the public to ignore any news which conveyed that the exchange is about to conduct a backdoor listing, as it is just a rumor and at the same time stated his view on traditional financial market saying that he believes “traditional financial market will embrace the blockchain economy in the future.”
Huobi token is being sold for $2.32 now, gaining almost 8% over the 24 hour period. Pantronics Holdings Ltd.’s market capitalization is currently over HKD 926 million ($118 million).