HKE Holdings Limited (1726) released an announcement on 20 January 2026 regarding a new framework agreement involving two wholly-owned subsidiaries, Hong Kong BGE Limited (BGE) and Quality Union Limited (QUL), and Monmonkey Group Securities Limited (MMK). Under this agreement, BGE will provide virtual asset trading platform and related services, while QUL will serve as liquidity provider for trades requested by MMK. The term of the framework runs until 31 December 2028 and remains subject to specified annual caps.
BGE is licensed under the Securities and Futures Ordinance to conduct Type 1 (dealing in securities) and Type 7 (providing automated trading services) regulated activities and also operates a virtual asset trading platform under a license granted in June 2025. QUL acts as one of BGE’s liquidity providers to help settle virtual asset transactions in a timely manner. MMK, which is 94% owned by an executive Director and controlling shareholder, is considered a connected person under Chapter 14A of the Listing Rules, triggering the continuing connected transaction requirements.
The proposed annual caps for the platform fees range from US$710,000 for the six-month period ending 30 June 2026 to US$4,260,000 for the year ending 30 June 2028. Meanwhile, the maximum transaction value for the virtual asset trades is expected to range from US$284 million to US$1.704 billion over a similar timeline. The rates for platform services, set between 0.03% and 0.25% of transaction value, will align with prevailing industry rates charged to third-party clients. Internal controls will be put in place to ensure adherence to an arm’s length basis and to prevent exceeding these caps.
Because the annual amount exceeds HK$10 million and the percentage ratios are above 5%, independent shareholder approval is required, along with reporting, annual review, and announcement obligations. An extraordinary general meeting will be held for this purpose, and a circular is scheduled to be dispatched to shareholders on or before 10 February 2026. The company’s announcement states that an Independent Board Committee, comprising all independent non-executive directors, and an independent financial adviser have been appointed to evaluate the framework agreement and the proposed transaction caps before shareholders vote at the EGM.