On November 7, Micro Connect, founded by Charles Li, former Chief Executive Officer of the Hong Kong Stock Exchange, officially launched Micro Connect Australia Exchange in Macau, China, in October. As for whether Micro Connect will seek to go public, Li Xiaojia responded that the answer is yes, the location will be in Hong Kong, China, and it is expected to be realized within five years. Li Xiaojia also stressed that the ASX is a financing-based exchange, rather than a secondary market high-frequency trading exchange, and the Hong Kong Stock Exchange is now about to raise at least 100 billion Hong Kong dollars per year, and is confident that it can achieve the goal of exceeding the Hong Kong Stock Exchange in five years.
Macau, China, is like a large flour miller that does not need huge financial infrastructure, and Hong Kong, China, an international financial center, is needed to convert flour into consumer goods such as bread and sell them. Since the ASX opened in March, the number of small and micro enterprises it has absorbed has exceeded the 10,000 mark, and it is confident that the ASX financing amount proposed earlier can catch up with the target of the Hong Kong Stock Exchange in five years.
Synthesis | Hong Kong 01 Zhitong Finance Editor| Arti
This article is for informational purposes only and does not constitute any trading advice
In terms of the number of small and micro enterprises absorbed by Micro Connect ASX, Li Xiaojia said in an interview with the media that Micro Connect Australia Stock Exchange has currently absorbed 10,800 small and micro enterprises, including 500 chain brands, all of which are from Chinese mainland, and the "Joy" restaurant under the recently signed Macau Haoyue Restaurant Group is the first overseas investment store of Micro Connect. In the future, in addition to small and micro enterprises in Chinese mainland, we will continue to look for enterprises in other regions including Macau, China and Hong Kong, China, as well as enterprises in Southeast Asia with a large population and a larger economic system.
Li Xiaojia responded to the location selection and said that Micro Connect's original intention was to help small and micro enterprises in Chinese mainland raise funds, and in order to help them connect to overseas international investors, these Chinese mainland commercial contracts (DRCs) must be converted into daily revenue obligations (DRO) that foreign investors can purchase In this regard, an international exchange is required to register and custody, and then these certificates are packaged and combined into DRP (daily revenue portfolio) and then sold to investors.
Li Xiaojia revealed that he had been in contact with developed regulatory authorities, including Hong Kong and Singapore, but he believed that the relevant certificates were different from general market securities, and there were difficulties in management and approval. Later, they approached the Macau authorities, who had a better understanding of Micro Connect's monthly revenue sharing model, believing that it was similar to the government's regular sharing tax on gaming enterprises, with the former relying on investment and the latter relying on licensing to earn income, so they quickly granted a license to Micro Connect.
However, Li Xiaojia said that Macau, China lacks a sound financial system, and many investors cannot buy DROs directly, and need to convert them into investable DRPs through licensed institutions in Hong Kong, China, to connect with international investors in other places.
Li Xiaojia believes that the current situation is like growing wheat in Chinese mainland, but ordinary people cannot eat it directly, so it needs to be processed and ground into flour on the ASX, and then converted into bread and noodles in Hong Kong, China, into consumer goods, and then sold to fixed income users such as banks and insurance companies under the supervision of the Hong Kong Securities and Futures Commission, and the rest will be sold to other equity investors such as hedge funds.
In addition, Micro Connect has recently attracted the attention of credit rating companies, and CSI Pengyuan International has released a report on the credit rating research of DRP-backed financial assets, analyzing the cash flow forecasts of small and micro enterprises. The Shariah Regulatory Commission of Amanie Advisors, a Shariah law consultancy, has allowed ASX to offer Shariah-compliant products, which are among the first Shariah-compliant investment products to be offered in East Asia.