HONG KONG, Dec 5 (Reuters) - A microfinancing platform, backed by former Hong Kong stock exchange chief, has won approval to set up Macau's second financial exchange that will allow foreign investors to invest in financing products issued by small Chinese companies.
The new exchange, Macau Micro Connect (Macao) Financial Asset Exchange Co, will offer products allowing Chinese shop owners to repay borrowed capital automatically with business revenues under blockchain-backed smart contracts.
Such yield-generating investments have drawn the interest of investors such as fund houses, insurers and wealth managers, said former Hong Kong stock exchange CEO Charles Li, whose startup raised $120 million as of March.
China has 70 million small stores, a type of borrower among the least favoured by commercial lenders, which remain the dominant source of financing for business in the country. (Reporting by Selena Li; Editing by Alison Williams)
