(Yicai Global) May 16 -- Hong Kong Exchanges and Clearing will invest CNY233 million (USD34 million) through a unit to take control financial technology firm Shenzhen Ronghui Tongjin Technology, its current controlling shareholder Kingdom Sci-Tech announced yesterday.

According to the agreement to be penned between HKEX's wholly-owned affiliate HKEX China and Ronghui Tongjin' original shareholders -- including Kingdom Sci-Tech -- the bourse will indirectly hold a 51 percent stake in Ronghui Tongjin after completion of the capital increase. The shareholding ratio of Kingdom Sci-Tech will fall from 60 percent to 29.4 percent, and another shareholder, an investment fund in Ningbo, Zhejiang province, will take the rest.

Ronghui Tongjin uses fintech to provide services for financial regulators, exchanges, conventional and online financial institutions, and intelligent regulatory information solutions for the People's Bank of China, the China Securities Regulatory Commission and the China Banking and Insurance Regulatory Commission, information on its website shows.

The transaction is not only conducive to Ronghui Tongjin's fintech business development, but also presents an opportunity for Kingdom Sci-Tech to introduce international financial business management professionals, to conduct exchanges and resource integration with HKEX China in international financial markets, fintech and industry, per the announcement.

Editor: Ben Armour