XChange TEC.INC Announces Acquisition of Hong Kong Insurance Brokerage Firm to Expand Market Presence

Rhea-AI Summary

XChange TEC (NASDAQ: XHG) has announced the acquisition of a Hong Kong-based insurance brokerage firm licensed by the Hong Kong Insurance Authority. The strategic move provides direct access to Hong Kong's insurance market and enables the company to develop specialized insurance solutions for clients across China and international markets.

The acquisition represents a significant milestone in XChange TEC's Asia-Pacific expansion strategy, positioning the company to capitalize on Hong Kong's growing insurance sector, which is driven by increasing demand from mainland Chinese clients and expatriates seeking international wealth preservation tools.

Through this strategic entry into the Hong Kong market, XChange TEC aims to establish itself as a comprehensive hub for sophisticated risk management and wealth enhancement solutions, leveraging Hong Kong's position as a global capital gateway to serve high-net-worth individuals, multinational corporations, and cross-border investors.

Positive

• Direct access to Hong Kong's growing insurance market
• Expansion of service capabilities for mainland Chinese and international clients
• Strategic positioning in a key global financial gateway
• Regulatory approval through Hong Kong Insurance Authority license

Negative

• None.

SHANGHAI, April 4, 2025 /PRNewswire/ -- XChange TEC.INC (NASDAQ: XHG) (the "Company"), today announced the acquisition of a Hong Kong-based insurance brokerage firm licensed by the Hong Kong Insurance Authority. This transaction grants the Company direct access to Hong Kong's dynamic insurance market and paves the way for the Company to launch tailored insurance solutions for clients across China and international markets.

The acquisition marks a critical milestone in the Company's Asia-Pacific growth strategy. Hong Kong's insurance sector has demonstrated robust growth driven by rising demand from mainland Chinese clients and expatriates seeking international-standard wealth preservation tools. As a gateway linking global capital flows, Hong Kong offers unparalleled opportunities to serve high-net-worth individuals, multinational corporations, and cross-border investors. The Company's entry into Hong Kong market aligns with the vision to become a one-stop hub for clients seeking sophisticated risk management and wealth enhancement solutions. The local regulatory capabilities allow the Company's business team to deliver innovative insurance products that meet the evolving needs of Asia's affluent population.

About XChange TEC.INC

XChange TEC.INC, through its subsidiaries and consolidated variable interest entities, operates insurance agency and insurance technology business. The insurance agency is PRC-licensed and operates nationwide in the PRC with a wide range of insurance products underwritten by major insurance companies, including industry leading and/or state-owned property and casualty insurance companies as well as certain regional property and casualty insurance companies in China. The insurance technology business is focused on operating and developing insurance technology in the PRC, including developing SaaS platform to connect consumers and underwriting support.

Forward-Looking Statements

This press release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. The Company's actual results may differ materially from those expressed in any forward-looking statements as a result of various factors and uncertainties. The reports filed by the Company with the Securities and Exchange Commission discuss these and other important factors and risks that may affect the Company's business, results of operations and financial conditions. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

View original content:https://www.prnewswire.com/news-releases/xchange-tecinc-announces-acquisition-of-hong-kong-insurance-brokerage-firm-to-expand-market-presence-302420655.html

SOURCE XChange TEC.INC

FAQ

What is the strategic significance of XHG's Hong Kong insurance brokerage acquisition?

The acquisition provides XHG direct access to Hong Kong's insurance market, enables development of tailored insurance solutions, and strengthens its position in serving mainland Chinese clients and expatriates.

How will XHG's acquisition impact its market presence in Asia-Pacific?

The acquisition marks a critical milestone in XHG's Asia-Pacific growth strategy, establishing a presence in Hong Kong as a gateway for serving high-net-worth individuals and cross-border investors.

What target markets will XHG serve through its new Hong Kong insurance brokerage?

XHG will serve high-net-worth individuals, multinational corporations, and cross-border investors seeking international-standard wealth preservation tools.

What regulatory advantages does XHG gain from the Hong Kong insurance acquisition?

The acquisition provides XHG with local regulatory capabilities through Hong Kong Insurance Authority licensing, enabling delivery of innovative insurance products.