Hong Kong-Listed China Financial Leasing Group Secures HK$86.7 Million for Web3 and AI Investments

Executive Summary

China Financial Leasing Group Limited (stock code: 2312), a company listed in Hong Kong, has announced a significant capital raise totaling approximately HK$86.7 million (equivalent to about US$11.1 million). The primary objective of this fundraising effort is to strategically allocate capital towards investments in Web3 and artificial intelligence (AI) listed and unlisted securities, signaling a profound shift in the company's operational focus. This move is explicitly aligned with the Hong Kong Digital Asset Development Policy Declaration 2.0, aiming to position the company as a key player in the burgeoning digital asset investment landscape.

The Event in Detail

On October 5, 2025, China Financial Leasing Group entered into a subscription agreement to issue 69,379,500 new shares. The subscriber for these shares is a company incorporated in the British Virgin Islands, whose entire issued share capital is held by Jin Xin. Mr. Jin is recognized as the founder and CEO of Antalpha Platform Holding Company (Nasdaq: ANTA), a prominent fintech entity specializing in financing, technology, and risk management solutions within the digital asset industry. The subscription price was set at HKD 1.25 per share, representing a 2.34% discount compared to the closing price on October 3. The total gross proceeds from this subscription are expected to be approximately HKD 86.7244 million, with net proceeds estimated at HKD 86.4744 million.

Financial Mechanics

The capital infusion of approximately HKD 86.4744 million in net proceeds is designated for specific strategic allocations. A substantial 94.22% of these funds, amounting to approximately HKD 81.5 million, will be directed towards investments in a diverse portfolio of listed and unlisted securities within the Web3 and AI sectors. The remaining 5.78% of the net proceeds will be reserved for general working capital. This allocation strategy underscores a concentrated effort to capitalize on growth opportunities within the rapidly evolving digital economy, leveraging the financial expertise of the subscriber and the strategic vision for the company's transformation.

Business Strategy & Market Positioning

This capital raise and subsequent investment strategy mark a clear pivot for China Financial Leasing Group towards becoming an innovative digital asset investment holding group. The focus on Web3 and AI aligns directly with Cai Wensheng's earlier acquisition of a 34.96% stake in the company via Longling Capital, with a stated intention to transform it into an asset management platform concentrated on these cutting-edge technologies. This strategic repositioning mirrors the broader trend of traditional financial entities in Hong Kong engaging with the digital asset space. For instance, OSL Group (863.HK) has collaborated with the Solana Foundation to accelerate compliant Real-World Asset (RWA) tokenization, while International Commercial Settlement, another Hong Kong-listed firm, plans to allocate 90% of a HK$500 million raise to Hong Kong crypto investments and its Web3 business. These developments collectively indicate a strategic alignment with Hong Kong's ambition to establish itself as a global leader in digital assets.

Broader Market Implications

This significant investment by China Financial Leasing Group has substantial implications for the broader Web3 ecosystem, particularly within Hong Kong. It reinforces the city's position as a burgeoning hub for digital assets, spurred by its proactive regulatory environment. Hong Kong's 2025 Stablecoins Ordinance, which mandates 100% reserve backing and stringent capital requirements, alongside the expansion of the Securities and Futures Commission (SFC) Virtual Asset Service Provider (VASP) licensing regime, has created a robust framework conducive to institutional investment. Initiatives like the ChinaAMC HKD Digital Money Market Fund, the first tokenized fund in APAC, further demonstrate institutional confidence. The strategic move by China Financial Leasing Group, under the influence of prominent figures like Jin Xin, is expected to serve as a precedent, encouraging other traditional financial institutions to explore or increase their exposure to Web3 and AI sectors. This could catalyze further capital inflows and innovation, solidifying Hong Kong's role as a bridge between traditional finance and the digital asset economy, and driving the scalable adoption of digital assets.