Singapore-based digital securities exchange ADDX today announced it had reached a US$200 million agreement that will give accredited investors in China access to digital securities covering various asset types, the company said.

Fast facts

  • According to a company statement, ADDX has reached an agreement with ICHAM, a Singapore-regulated wealth and fund management company, to be the primary venue for investments from the ICHAM fund in China, which is authorized to raise capital from Chinese institutions and individuals through the Qualified Domestic Limited Partnership scheme (QDLP).
  • The QDLP scheme allows investors across China to buy into renminbi funds that invest in assets overseas. Fund quotas are allocated through a few major Chinese cities, including Beijing, Shanghai, Shenzhen and Chongqing. Last month, ICHAM received a US$200 million allocation as part of the Chongqing government’s overall US$5 billion QDLP quota. ADDX and ICHAM were both founded by ADDX Chief Executive Officer Danny Toe.
  • The ADDX-ICHAM partnership will offer Chinese investors access to digital securities covering a range of asset types, including pre-IPO equity, hedge funds, VC funds, real estate funds, wholesale bonds and structured products.
  • “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,” said Oi Yee Choo, ADDX chief commercial officer, in a statement. “We are only in the early days of this burgeoning flow of capital between China and the rest of the world.”
  • Founded in 2017, ADDX is regulated by the Monetary Authority of Singapore and backed by the Singapore Exchange, Temasek-owned Heliconia Capital as well as Japanese investors JIC Venture Growth Investments (JIC-VGI) and the Development Bank of Japan.
  • Although accredited Chinese investors may invest in digital assets through the ADDX-ICHAM partnership, digital currencies such as Bitcoin and stablecoins have become out of bounds, with the Chinese government saying they were speculative tools that could pose threats to financial security and social stability.

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