SGX-backed ADDX advances China footprint with $268m agreement

The investment is tied to a government quota for Chinese offshore investments.

The digital securities exchange, ADDX, announced today the conclusion of a $268m (US$200m) agreement linked to the Qualified Limited Partnership (QDLP) scheme.

This allows domestic investors based in China to acquire renminbi funds that enable them to focus on overseas investment opportunities. Funds are distributed through major cities that include Beijing, Shanghai, and Chongqing.

Through this scheme, ICHAM, a Singapore-regulated wealth and fund management company, received a $268m (US$200m) allocation from the QDLP’S $5b (US$6.71b) quota. ADDX will then serve as the venue for investments from the ICHAM fund in China and is allowed to raise capital from Chinese institutions and individuals. Access to private market products through the form of digital securities will be offered by the company. 

The ADDX-ICHAM partnership is amongst the first batch of QDLP quota recipients, with ICHAM being the first Singapore company to attain a QDLP allocation. 

Oi Yee Choo, CCO of ADDX stressed the importance of this opportunity, as well as its implications for the international growth of ADDX.

“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," Choo said.

"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.”

The opening up of official channels to allow Chinese investors to diversify their portfolios globally has been taking place gradually and steadily since the 2000s.