PR91895

TOKYO, Sept. 27, 2021 /PRNewswire=KYODO JBN/ --

Official quota under QDLP programme allows institutions and high-net-worth

individuals in China to invest in both public and private market products

abroad

Digital securities exchange ADDX – formerly known as iSTOX, which is backed by

Japanese investors JIC Venture Growth Investments (JIC-VGI) and the Development

Bank of Japan (DBJ) as well as Tokai Tokyo Financial Holdings, expects to

enlarge its business in China significantly, after concluding a US$200-million

agreement tied to a government-granted quota for Chinese offshore investments.

The Qualified Domestic Limited Partnership scheme, or 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 authorised to raise capital from Chinese 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 [1].

ICHAM is also the first Singapore company to secure a QDLP allocation in any

Chinese city. ADDX and ICHAM were both founded by ADDX Chief Executive Officer

Danny Toe.

Coming less than a year after ADDX signed a memorandum of understanding (MOU)

with the Chongqing government to set up a future digital securities exchange

for the Chinese market [2], the new tie-up is an important fillip to ADDX's

international growth plans, the company said. Regulated by the Monetary

Authority of Singapore (MAS), ADDX currently serves accredited investors from

27 countries, spanning Asia Pacific, Europe and the Americas (excluding the

United States).

Oi Yee Choo, Chief Commercial Officer of ADDX, said: "The opening up of

official channels like QDLP to allow Chinese investors to diversify their

portfolios globally has been taking place gradually and steadily since the

2000s. 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. For international companies

that manage or facilitate these investments, including ADDX, China represents a

massive opportunity. We are only in the early days of this burgeoning flow of

capital between China and the rest of the world."

Ms Choo added: "At ADDX, our international expansion strategy is grounded on

our strong, varied set of blue-chip offerings. We are building the world's

leading private market exchange with blockchain and smart contract technology.

World-renowned issuers have been drawn to the speed, cost efficiency and access

to capital that digital securities provide, in a revolution that will

eventually consign traditional, paper-based securities to history. ADDX is also

regulated in Singapore, which has established its standing as the top wealth

management hub for Asian family offices and high-net-worth individuals, thanks

in no small part to MAS' strategic long-term plan to build a conducive

environment for global investors and asset managers. As Chinese wealth goes in

search of opportunities abroad, the financial ecosystem in Singapore that ADDX

is a part of has a competitive edge because of its deep pool of talent, robust

and progressive regulations and openness to the world."

Launched in 2012, QDLP is one of a few official programmes for Chinese offshore

investments, which include QDII [3] and Wealth Management Connect [4]. The QDLP

is notable because it allows offshore investments in a greater variety of

assets – not just public market products, but also private market ones with a

potentially higher risk-reward profile. Chinese individual investors in QDLP

funds have to meet sophisticated investor requirements [5].

ADDX was founded in 2017 as an integrated issuance, custody and exchange

platform for digital securities. The financial technology company is backed by

Japanese investors JIC Venture Growth Investments (JIC-VGI), the Development

Bank of Japan (DBJ), Tokai Tokyo Financial Holdings, Mobile Internet Capital

and Juroku Bank, as well as Singapore Exchange and Temasek-owned Heliconia

Capital [6].

[1] See official Chongqing QDLP announcement on 26 August 2021:

http://www.liangjiang.gov.cn/Content/2021-08/26/content_10217605.htm

[2] For more information:

https://www.addx.co/files/09_i_STOX_Signs_MOU_Agreement_With_Chongqing_Monetary_Authority_Sets_Sights_On_China_Expansion_692f17bce2.pdf

[3] The Qualified Domestic Individual Investor scheme. For more information:

http://www.csrc.gov.cn/pub/csrc_en/OpeningUp/RelatedPolices/QDII/201210/t20121029_216247.html

[4] For more information:

https://www.hkma.gov.hk/gb_chi/news-and-media/press-releases/2020/06/20200629-4/

[5] To take part in QDLP funds, individual Chinese investors must have two

years of investing experience and have (a) household financial assets of at

least CNY 5 million, OR (b) net household financial assets of at least CNY 3

million yuan, OR (c) an individual annual income, averaged over three years, of

at least CNY 500,000.

[6] Other ADDX shareholders include Korea's Hanwha Asset Management, Japan's

Tokai Tokyo Financial Holdings and Thailand's Kiatnakin Phatra Financial Group.

About ADDX

ADDX is a future-ready capital markets platform set to usher in a new era for

fundraising and investment. Through digital securities, ADDX offers a more

innovative, flexible, inclusive, and efficient system for an emerging

generation of investors and issuers. ADDX is on a mission to enable all users

to transact exactly the way they want to and extend capital market access to a

broader segment of the community. ADDX is owned and operated by ICHX, which has

been approved by MAS as a recognised market operator (RMO), and has a capital

markets services (CMS) license to deal in securities and collective investment

schemes as well as to provide custodial services. For more information, visit

ADDX.co(http://www.addx.com/).

For media enquiries, please contact:

Elgin Toh

elgintoh@addx.co

SOURCE:  ADDX