What’s new: Former Hong Kong Stock Exchange chief Charles Li won approval to set up a financial assets exchange in Macao for the micro enterprises financing platform he co-founded, Li said Monday.
Micro Connect (Macao) Financial Assets Exchange Co. Ltd. is expected to start operation by the end of the first quarter, Li said. The enterprise will offer global investors access to China’s real economy with a new asset class – Daily Revenue Contract Certificates, or DRCCs, he said. Li is the former chief executive of Hong Kong Exchanges and Clearing Ltd. (HKEX).
DRCCs will entitle holders to receive daily revenue shares from Chinese micro and small businesses. The new Micro Connect Exchange will operate on a blockchain-enabled technology platform, the company said in a statement.
Li said Micro Connect chose Macao to because of its position as part of the Guangdong-Hong Kong-Macao Greater Bay Area project and because of its lower reliance on financial markets, making it easier to accept a new financial asset trading platform.
The background: Li stepped down from the HKEX at the end of 2020 after leading the Asian stock market for more than a decade as its longest-serving head since it went public in 2000. During his term, the exchange launched a stock connect program linking markets in Hong Kong and on the mainland.
After leaving the HKEX, Li founded Micro Connect with Zhang Gaobo, CEO of private equity firm Oriental Patron Financial Group Ltd. The platform is part of Numa Group, co-founded by Li and Zhang. Numa is also building a new digital exchange platform, NumaEx, and a social media service platform for small business owners and entrepreneurs.
The platform’s Chinese name translates literally as “drip irrigation connect,” a name inspired by agricultural irrigation directing water to crops, Li said. The idea of Micro Connect is to link international capital with small and micro enterprises, which have difficulty accessing investment and financing.
As of Nov. 30, Micro Connect collaborated with more than 170 brands to invest in nearly 1,800 stores in retail, food and beverage, services, and culture and sports across more than 140 Chinese cities.
Contact reporter Denise Jia (huijuanjia@caixin.com) and editor Bob Simison (bob.simison@caixin.com)
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