Private markets platform ADDX will bring Chinese accredited investors onto the platform under an official Chinese offshore investment quota program.
ADDX has reached an agreement with Singapore wealth and fund management firm ICHAM to channel investments from the ICHAM fund in China to the platform as part of the Qualified Domestic Limited Partnership (QDLP) scheme, it announced on Thursday.
The QDLP scheme allows domestic investors in China to buy into renminbi funds that focus on overseas investment opportunities. ICHAM has received a $200-million allocation as part of the Chongqing government’s overall $5-billion QDLP quota.
«Massive Opportunity»
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 announcement said.
«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,» Oi Yee Choo, ADDX chief commercial officer, said.
International Growth
The announcement comes 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.
Formerly known as iSTOX, the platform is backed by the likes of Singapore Exchange, Temasek Holdings subsidiary Heliconia, Japanese investors JIC Venture Growth Investments and the Development Bank of Japan. Both ADDX and ICHAM were founded by ADDX chief executive officer Danny Toe.
The platform, which was founded in 2017, currently serves accredited investors from 27 countries, spanning Asia Pacific, Europe and the Americas (excluding the United States).
