China Financial Leasing Group, listed in Hong Kong, has announced plans to raise funds for its artificial intelligence and crypto initiatives through a general mandate by subscribing for new shares. The company intends to issue approximately 69.379 million shares.
The fundraising effort aims to generate around HKD 86.724 million ($11.14 million), with net proceeds of approximately HKD 86.474 million after expenses. Of this, HKD 5 million will be allocated to the firm’s general operating fund, while the remaining HKD 81.47 million will be invested in the web3 and AI sectors.
According to the subscription agreement, the company is also planning to develop a digital investment platform. The proceeds from the share issuance will support investments in digital assets, including stablecoins and other major cryptocurrencies.
China Financial Leasing Group has been exploring a variety of digital asset products for its new venture. Its crypto platform is expected to facilitate trading in stablecoins, Bitcoin, Ethereum, real-world assets, NFTs, DeFi, DePin, and more. While no specific launch date has been announced, the company appears focused on raising the necessary capital to kickstart its web3 initiative, leveraging both AI and crypto.
Stock Surges Following Announcement
On October 6, China Financial Leasing Group’s shares jumped following the news. According to Google Finance, the stock rose 19.53%, or roughly 0.25 points, in the hours after the announcement.
Before the news, the stock had been trading flat around $1.20, reaching a peak of $1.26. After the announcement gained traction, investor interest pushed the price up to approximately $1.55 in just one day.
China Financial Leasing Group is far from alone in its move toward web3. Over the past year, numerous Asian companies have expressed interest in the crypto and AI sectors.
Several firms announced plans to raise capital through share issuance, with proceeds earmarked for crypto investments or the creation of digital asset treasuries. Additionally, some Hong Kong-based companies have sought to ride the stablecoin wave, signaling intentions to register for licenses to issue tokens pegged to the local currency.
Such announcements often drive a noticeable uptick in stock prices, giving a boost to previously underperforming shares. For instance, Hong Kong’s first licensed crypto exchange, OSL, saw its stock rise more than 12% in July after revealing that a significant portion of its $300 million fundraising would be directed toward stablecoins.
The surge in crypto-related announcements and their impact on stock prices has become so common that the Hong Kong Securities and Futures Commission issued a warning to investors. The regulator urged caution regarding statements about stablecoins and crypto, noting the potential for increased risk and fraudulent schemes.
