Platform aims to help micro businesses access financing
Micro Connect (Macau) Financial Assets Exchange (MCEX), founded by Charles Li Xiaojia, former CEO of Hong Kong Exchanges and Clearing Limited (HKEX), has started its trial operation, aiming to enable the country’s micro and small businesses to access financing from global investors, with the use of fintech.
The Micro Connect investment platform uses Daily Revenue Obligations (DROs) that enables global investors to share daily revenues generated by small businesses “transparently and safely”.
Micro Connect was co-founded in 2021 by Li, who was HKEX’s CEO between 2010 and 2020, and his fellow veteran investor Gary Zhang Gaobo. Micro Connect is headquartered in Hong Kong.
Li is the chairman of Micro Connect, while Zhang is its CEO.
MCEX is headquartered on the 16th floor of the Finance and IT Centre in Nam Van.
A ceremony marking MCEX’s trial operation was held at the newly-opened Galaxy International Convention Centre (GICC) in Cotai on Saturday.
According to a chief executive order published in the Official Gazette (BO) in December last year, the Macau government has authorised the establishment and operation of Micro Connect (Macau) Financial Assets Exchange Company Limited.
According to its website, Micro Connect is a new financial market platform connecting global capital with China’s micro and small businesses, which have difficulty accessing investment and financing through traditional financing tools. By making use of fintech, the platform aims to offer the country’s micro and small firms a new alternative for them to access affordable funds to develop their businesses.
According to its website, Micro Connect has created DROs as a new asset investment category that enables global investors to directly invest in the operations of “millions of” micro and small shops in China and then receive investment returns “transparently and safely” through sharing the shops’ revenues every day.
In addition to Li and Zhang, Saturday’s ceremony in Macau was also attended by a number of prominent guests such as Chief Executive Ho Iat Seng, Secretary for Economy and Finance Lei Wai Nong, and Legislative Assembly (AL) Vice President Chui Sai Cheong.
An MCEX statement on Saturday said that the exchange platform aims to “support grassroots entrepreneurship, increase job opportunities, and [help the country] achieve common prosperity”.
Addressing Saturday’s ceremony, Macau Monetary Authority (AMCM) President Benjamin Chan Sau San said that 11 financial institutions of various types have been newly established in Macau over the past five years.
Chan said that the Macau government expects MCEX to gradually improve its operations and rectify any possible arising problems through its ongoing trial operation, as well as to complete establishing a solid risk prevention mechanism.
The Macau government expects MCEX to contribute to Macau’s appropriate economic diversification, Chan said.
Also addressing the ceremony, Li said that MCEX is the world’s first financial market dedicated to micro businesses in China through an innovative new asset investment category, DROs. By leveraging China’s leading digital economy, Li said, the platform will reshape the global financial landscape.
Li said that the successful operation of MCEX will offer a solution to a long-standing financial difficulty affecting China and the globe, namely micro and small businesses facing difficulties in financing their operations and development.
According to Saturday’s statement, as of February this year, around 2,800 shops and other outlets in the mainland have joined Micro Connect, financing a total of around 820 million yuan. The around 2,800 shops and outlets cover 166 cities.
Why Macau?
During a post-ceremony press conference, Li said that Micro Connect had decided to choose Macau to set up its financial assets exchange because he thought that Macau, that is not a sophisticated financial hub, is more willing to accept new and innovative financial investment platforms.
Li said that he had decided to set up Micro Connect’s financial assets exchange in Macau after a meeting with Ho.
Moreover, Li also said that micro and small businesses in Macau could join Micro Connect in order to access financing as long as they achieve digitalisation in their operations.
Nevertheless, Li said that the popularisation of digitalisation in Macau’s micro and small businesses still has a long way to go.
Li underlined that DROs are neither stocks nor debt instruments.
Micro Connect Chairman Charles Li Xiaojia addresses Saturday’s ceremony at Galaxy International Convention Centre (GICC) marking the trial operation of its financial assets exchange in Macau. – Photo: Micro Connect
