China Financial Leasing Group is planning to raise HK$86.5 million by issuing over 69 million new shares at HK$1.25 each to fund a new digital asset investment platform focused on cryptocurrencies, blockchain, and AI sectors.

This strategic move aligns with Hong Kong's broader goal to develop into a global crypto hub, supported by local policies and increased regulatory backing for Web3 and blockchain innovations.

Despite ongoing volatility in cryptocurrency markets, investor confidence remains strong, as evidenced by the positive market response and a 34% surge in China Financial Leasing's shares following the announcement.

Following the news, China Financial Leasing's shares jumped 34%, closing at HK$1.72 and boosting its market capitalization to around HK$555 million, even as the Hang Seng Index declined slightly.

This move marks a strategic diversification for China Financial Leasing, transitioning from traditional aviation and infrastructure leasing into emerging financial technologies.

The company's new crypto platform aims to facilitate trading of major cryptocurrencies and real-world assets, although no specific launch date has been announced.

This development reflects a broader global trend where financial institutions are adopting AI-driven blockchain solutions to enhance transparency, compliance, and security in crypto-finance.

Hong Kong regulators continue to support RWA tokenization and virtual asset licensing, with over 77 firms applying for licenses, amid regional momentum driven by major financial institutions launching digital asset initiatives.

However, Chinese regulators have recently advised brokerages to pause efforts in tokenizing real-world assets in Hong Kong due to concerns over risk management and sustainability, despite Hong Kong's ongoing digital asset initiatives.

The rise in stock prices has prompted warnings from the Hong Kong Securities and Futures Commission about potential fraud and the importance of investor caution amid the enthusiasm for digital assets.

Early development efforts include an AI-powered market prediction engine that analyzes tokens, liquidity shifts, and market sentiment to support investment decisions.

Across Asia, especially in Hong Kong, Singapore, and South Korea, institutions are increasingly integrating AI into blockchain infrastructure, including predictive trading systems and DeFi protocols.