A Strategic Private Placement

China Financial Leasing Group, an investment firm listed in Hong Kong, has announced plans to raise approximately $11.1 million through a private placement. The capital is designated for the creation of a new platform focused on cryptocurrency and artificial intelligence (AI) investments, signaling the company’s deepening commitment to the digital asset sector.

The transaction involves Innoval Capital, which will acquire 69.38 million new shares at a price of HK$1.25 per share. This purchase represents roughly 20% of the company’s current share capital and will constitute approximately 16.7% after the new shares are issued.

Innoval Capital, an investment company based in the British Virgin Islands, was founded by Moore Xin Jin, who is also the CEO of the Nasdaq-listed Antalpha Platform Holding Company (ANTA). With ANTA managing over $1.6 billion in assets, Jin’s extensive experience in the fintech and crypto markets is expected to bring significant expertise to the new venture.

Expanding into the Digital Economy

In an official statement, China Financial Leasing detailed its strategic direction. The company intends to establish a Crypto-AI digital asset investment platform that will invest in a diverse portfolio, including digital asset exchanges, stablecoins, Bitcoin (BTC), Ethereum (ETH), Real World Assets (RWA), Non-Fungible Tokens (NFTs), and Decentralized Finance (DeFi) projects.

This initiative aligns with the Hong Kong government’s recent push to foster the growth of the crypto-asset market and encourage the adoption of blockchain technologies. The company aims to position itself as an innovation hub for digital assets and AI within this supportive regulatory environment.

Market Reacts Positively

Investors responded with optimism following the announcement. Shares of China Financial Leasing Group surged by 25%, bringing the company’s market value to approximately HK$555 million, or about $71.3 million. The sharp price increase reflects strong market confidence in the firm’s new crypto-focused strategy.