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Chinese Logistic’s Co. Plans For Security Token on America’s INX

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At some point later this month, the Chinese freight SaaS service provider HGC Info Tech intends to publish a digital security token on the INX digital asset exchange in the United States.

HGC Info Tech, a Chinese digital software-as-a-service (SaaS) company, has announced that it would be releasing the Trucpal digital security token later this month, with the intention of raising a total of $20 million in the capital.

HGC, which serves the freight market in China, is planning to list the token on the U.S. digital asset exchange INX in compliance with U.S. Securities laws and regulations. This decision comes at a time when an increasing number of Chinese companies are facing the possibility of being delisted from the U.S. stock market due to auditing regulations.

HGC decided to establish its own security token after becoming aware of the constantly expanding need for blockchain solutions and digital assets generally. To do so, the company collaborated with blockchain experts. The firm will hopefully complete its IPO on the INX July 25 successfully, the owner of the blockchain-powered SaaS platform Trucpal is getting ready to provide the first security token to the Chinese freight market.

With an expected annual output of $1.5 trillion in 2020 and an annual transportation volume that was more than 52 billion tons in 2017, the SaaS provider with headquarters in Xiamen feels that the freight business in China is the most attractive market in the world.

The company is under the impression that the security token would make it possible for millions of users on the Trucpal platform to earn financial benefits and will aid in the expansion of its freight ecosystem. This action also represents the beginning of potential long-term cooperation with the INX, which launched its own security tokens in 2019 and raised $130 million as a result of the success of that endeavor.

“lNX is the leader in issuance and trading services for US compliant digital securities. The cooperation with lNX will greatly help HGC to successfully issue the Trucpal token in compliance with U.S. regulatory requirements.”

Wendong Zhang, Founder of HGC

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Zhang also mentioned that the token possesses the capability of considerably advancing the HGC system and gaining the backing of millions of users. He is of the opinion that the distribution of Trucpal security tokens could “be a long-term win-win development while creating potential rewards to Trucpal Token investors,” as he went on to explain.

The Trucpal token, the launch of which is scheduled for later this month, was developed in accordance with the laws and regulations that govern the sale of securities in the United States. This was done because nearly 200 Chinese companies that are listed in the United States face the possibility of being delisted due to auditing rules.

Holding Foreign Firms Accountable Act (also known as “HFCAA”) was passed into law by the United States government in 2020. This law mandates that publicly traded companies in the United States make audit working documents available to the public. According to the statute, public companies who refuse to offer access to their financial information will be delisted from stock exchanges in the United States within three years.

Discussions between the United States and China took place earlier this month with the goal of lowering the risks associated with delisting and enabling a number of Chinese companies to continue trading on exchanges in the United States. According to  a report from Bloomberg writers the success of the negotiations “hinges in part over the scope of redactions in audit work papers of Chinese companies.” This information is important to the development of the negotiations.

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