Hong Kong-listed China Financial to raise $11M to build crypto, AI investment platform

The Hong Kong-listed investment company China Financial Leasing Group announced plans to raise approximately HK$86.5 million ($11.1 million) to fund the creation of a crypto investment platform. 

According to a filing with the Hong Kong Stock Exchange on Sunday, the China Financial Leasing Group has entered into a subscription agreement with Innoval Capital, which will purchase 69.38 million new shares at HK$1.25 per share. 

The placement is about 20% of the firm’s existing share capital and 16.7% of its enlarged base after completion.

Innoval Capital acquires shares at a discount for crypto investments

The subscription price is a small discount of 2.34% to the stock’s closing price of HK$1.28 on the last trading day before the deal was signed. The share value is also 4.87% less than the average closing price of HK$1.314 over the previous five trading days, and a 1.42% discount to the 30-day average of HK$1.268.

China Financial’s shares had surged roughly 34% on Monday after the announcement news broke, closing at HK$1.72, even as the Hang Seng Index fell 0.67%. 

Approximately 94% of the net proceeds from the share placement will supposedly be allocated to securities in different industries, with a primary focus on crypto, blockchain, and artificial intelligence investments.

China Financial stated it intends to create a “Crypto-AI digital asset investment platform” within its group structure to invest in exchanges and digital assets, including stablecoins, Bitcoin (BTC), Ethereum (ETH), real-world assets (RWA), non-fungible tokens (NFTs), decentralized finance (DeFi), and decentralized physical infrastructure networks (DePIN).

“The company intends to establish a Crypto-AI digital asset investment platform, investing in digital asset exchanges and crypto, and building an asset management platform,” the filing read.

Innoval Capital is an investment firm incorporated in the British Virgin Islands, founded by crypto enthusiast and veteran investor Moore Xin Jin. Jin is the CEO of Antalpha Platform Holding Company (ANTA), a Nasdaq-listed asset management firm overseeing more than $1.6 billion in assets.

Under the terms of the agreement, Innoval will subscribe to 69,379,496 shares, with an aggregate nominal value of HK$2,775,179.84. It will give the subscriber a significant minority ownership and influence in China Financial’s digital asset business plan.

Hong Kong’s pro-crypto policy to favor crypto treasuries

China Financial Leasing Group’s plans for crypto come on the backdrop of Hong Kong’s efforts to become a regional center for virtual assets businesses. The special Chinese jurisdiction government’s June policy statement encourages digital asset development under a regulated framework.

“The company aims to evolve into an innovative digital asset investment holding group by integrating AI and blockchain technologies,” China Financial stated, adding that the initiative could enhance value creation for shareholders while diversifying its investment portfolio.

Hong Kong has been actively building a supportive environment for digital assets by paving the way for growing institutional participation, which has been limited by Mainland China’s ban on crypto.

According to local news publication Ming Pao, citing people familiar with the matter, the current chief executive officer of the Securities and Futures Commission (SFC), Julia Leung, could extend her tenure for three more years when her current term ends later this year.

After she helped make policy changes, the SFC and Hong Kong Stock Exchange simplified listing requirements to draw companies interested in crypto from mainland China and Southeast Asia. 

As reported by Cryptopolitan, her administration is currently leading a case against hedge fund Segantii Capital over alleged insider trading, set for trial in May 2026 after the defendants pleaded “not guilty.”

The 65-year-old financial regulator implemented laws to manage retail trading enthusiasm, like capping margin ratios and reviewing brokerage practices to reduce risks taken during IPOs. 

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