ADDX, a Singaporean digital securities exchange formerly known as iSTOX, expects to enlarge its business in China after with a US$200-million agreement tied to a government-granted quota for Chinese offshore investments.
The Qualified Domestic Limited Partnership scheme (QDLP) allows domestic investors across China to buy into renminbi funds that focus on overseas investment opportunities.
Fund quotas are allocated through a few major cities including Beijing, Shanghai, Shenzhen and Chongqing.
ADDX has reached an agreement with the Singapore-regulated wealth and fund management company ICHAM, which has received a US$200-million allocation as part of the Chongqing government’s overall US$5-billion QDLP quota.
Under the agreement, ADDX will be the primary venue for investments from the ICHAM fund in China to raise capital from local institutions and individuals.
ADDX will offer Chinese investors access to private market products issued in the form of digital securities covering a broad range of asset types, including pre-IPO equity, hedge funds, VC funds, real estate funds, wholesale bonds and structured products.
The ADDX-ICHAM partnership was among the first batch of two QDLP quota recipients announced by the Chongqing government last month.
Regulated by the Monetary Authority of Singapore (MAS), ADDX currently serves accredited investors from 27 countries.
The company is backed by Singapore Exchange, Temasek-owned Heliconia Capital and Japanese investors JIC Venture Growth Investments (JIC-VGI) and the Development Bank of Japan (DBJ).
Oi Yee Choo, Chief Commercial Officer of ADDX, said:
“Amid rising asset prices within China, this move by the Chinese authorities is a prudent one that empowers Chinese institutions and high-net-worth individuals to participate in high-quality opportunities wherever they are, before bringing their returns back into the Chinese economy to the benefit of local businesses and households.”
Featured image: Edited from Unsplash
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