OneConnect Financial Technology (HKG:6638) and Bo Yu said China's State Administration for Market Regulation has approved the proposed privatization of OneConnect, satisfying a key precondition for the deal, according to a Wednesday Hong Kong bourse filing.

Shares of OneConnect were up over 3% in Thursday morning trade.

With this regulatory hurdle cleared, the proposed transaction is now subject only to other conditions, including shareholder and court approvals, the filing said.