Singapore private market exchange ADDX is teaming up with Beijing-based China Construction Bank to allow the lender to offer Mainland investors access to products on ADDX’s platform.
This will be done through a US$200 million quota under China’s Qualified Domestic Limited Partnership scheme (QDLP). QDLP is a ten-year-old programme that allows sophisticated local investors to invest in onshore funds that invest overseas, including public and private markets investment products.
ADDX and China Construction Bank have signed a memorandum of understanding to work together on the custody and distribution of the quota allocation, ADDX says in a statement.
“As Asia’s largest private market exchange, ADDX is eager to bring the global investment opportunities on our platform to China, Asia’s largest wealth management market,” Chief Executive Officer Choo Oi-Yee says in the statement. “By allowing domestic capital to buy into high-quality offshore assets, China is ensuring its investors can build globally diversified portfolios that are best positioned to preserve and expand gains from the opening-up of the country’s economy over the past few decades.”
China Construction Bank has 14,510 branches in China and more than 351,000 employees, with a market capitalisation of over $175 billion as of end-2021.