China Financial Leasing Group plans to raise $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.
Important takeouts:
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China Financial Leasing Group will raise $11.1 million through share placements to fund a new crypto investment platform.
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The platform targets a wide range of digital asset sectors, including Defi, RWA, Stablecoins, and Depin.
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The move coincides with the push to become a global crypto hub, bringing the company's shares up 25%.
In a filing with the Hong Kong Stock Exchange on Sunday, the company said it would issue 69.38 million shares to Innovaru Capital at HK$1.25 per share.
The subscription represents 20% of the company's current share capital and 16.7% of the expanded post-base layout.
According to filing, capital funds the creation of a crypto investment platform that supports a wide range of digital asset ventures.
These include exchange investments, Stablecoins, Bitcoin (BTC), Ethereum (ETH), Real World Assets (RWA), NFTS, DEFI, and Decentralized Physical Infrastructure (DEPIN).
Innoval Capital is a Virgin Islands based company founded by Antalpha CEO Moore Xin Jin.
Jin is a veteran player in the digital finance space at Antalfa Platform Holdings Company (ANTA), which manages assets of more than $1.6 billion.
China Financial Leasing said the move is consistent with the Hong Kong government's June 2024 policy pushing forward with policies that seek to position it as the global crypto hub.
The company plans to evolve into an “innovative digital asset investment holding group” by leveraging both blockchain and artificial intelligence.
The company's shares surged 25% in Hong Kong trading on Monday afternoon after the announcement.
According to Yahoo Finance data, as of 2pm local time, the company's market capitalization was approximately $555 million ($71.3 million).
The proposed pay raises and shift to digital assets demonstrate a growing appetite among Hong Kong-listed companies to leverage city regulatory support for the Web3 initiative.
Last month, Chinese securities regulators informed several major brokerages to suspend real-world asset (RWA) tokenization efforts in Hong Kong, citing concerns about risk management and speculation, according to a Reuters source.
The China Securities and Regulation Authority (CSRC) has not issued any official directives, but is reportedly scrutinizing whether these offerings are supported by sustainable business models.
