China Financial Leasing Group is set to raise HK$86.7 million ($11.1 million) through a strategic share placement aimed at launching a digital asset investment platform focused on cryptocurrency and artificial intelligence.
Key Takeaways:
- China Financial Leasing Group will raise $11.1 million through a share placement to fund a new Crypto-AI investment platform.
- The platform will target a wide range of digital asset sectors including DeFi, RWA, stablecoins, and DePIN.
- The move aligns with Hong Kong’s push to become a global crypto hub, sending the company’s stock up 25%.
In a filing with the Hong Kong Stock Exchange on Sunday, the firm said it will issue 69.38 million new shares to Innoval Capital at HK$1.25 per share.
The subscription represents 20% of the firm’s current share capital and 16.7% of its expanded base post-placement.
China Financial Leasing to Fund Crypto-AI Investment Platform with New Capital Raise
According to the filing, the capital will fund the creation of a Crypto-AI investment platform that will back a wide array of digital asset ventures.
These include investments in exchanges, stablecoins, Bitcoin (BTC), Ethereum (ETH), real-world assets (RWA), NFTs, DeFi, and decentralized physical infrastructure (DePIN).
Innoval Capital is a British Virgin Islands-based firm founded by Moore Xin Jin, the CEO of Antalpha.
Jin is a seasoned player in the digital finance space, leading Antalpha Platform Holding Company (ANTA), which manages over $1.6 billion in assets.
China Financial Leasing says the move aligns with the Hong Kong government’s June 2024 policy push to position the city as a global crypto hub.
The firm plans to evolve into an “innovative digital asset investment holding group” by leveraging both blockchain and artificial intelligence.
Shares of the company surged by 25% in Hong Kong trading on Monday afternoon following the announcement.
As of 2:00 p.m. local time, the company’s market capitalization stood at approximately HK$555 million ($71.3 million), according to Yahoo Finance data.
The proposed raise and shift toward digital assets signals a growing appetite among Hong Kong-listed firms to capitalize on the city’s regulatory support for Web3 initiatives.
China Urges Brokerages to Halt RWA Tokenization in Hong Kong
Last month, China’s securities regulator informally instructed several major brokerages to pause real-world asset (RWA) tokenization efforts in Hong Kong, citing concerns over risk management and speculation, according to Reuters sources.
The China Securities Regulatory Commission (CSRC) has not issued a public directive but is reportedly scrutinizing whether these offerings are backed by sustainable business models.
This guidance comes at a time when Hong Kong is actively positioning itself as Asia’s digital asset hub, launching tokenized bond programs, stablecoin frameworks, and welcoming dozens of virtual asset platforms.
Recent high-profile launches by GF Securities and China Merchants Bank International illustrate the region’s momentum, despite mainland China’s cautious stance.
Hong Kong regulators continue to advance RWA tokenization policies through the FSTB and HKMA. Investor interest remains strong, with 77 firms applying for licenses and stocks like Guotai Junan International and Fosun International seeing massive gains linked to crypto expansion.
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