Micro Connect’s MCEX certified to offer Shariah-compliant products

 out23

October 30, 2023

Share

Micro Connect, Financial Services, FinTech, China, MSMEs, SMEs, Retail busineses, Series C Funding, MCEX, ealth Management, Exchange Platform, Online Transactions, Financial Solutions, Digital Finance, Hong Kong, Shariah Compliance, China, Micro Connect Group has deemed that Micro Connect (Macao) Financial Assets Exchange (“MCEX”) Shariah-compliant products are allowed to offer Shariah-compliant products on the platform.

These products will be Shariah-compliant products offered in East Asia, further strengthening MCEX’s appeal to Islamic investors. The certification recognises that Micro Connect’s revenue-sharing products are in line with Islamic law, including being non-interest-bearing, and approves the company’s Shariah-compliant screening methodology.

Being certified as Shariah-compliant enables MCEX to expand its membership landscape, opening the doors to Islamic investors looking to invest in the cash flows of China’s micro and small businesses.

MCEX members will be able to invest in Shariah-compliant DRPs (“Daily Revenue Portfolios”), baskets of Daily Revenue Obligations (DROs), and receive daily revenue shares of China’s Shariah-compliant small businesses. This certification also adds credibility to DRPs, particularly in Muslim-majority markets, and accelerates the exchange’s globalisation efforts.

“We are delighted to collaborate with Amanie Advisors in developing a methodology to tailor-make Shariah-compliant DRPs for Islamic investors, an important group in today’s capital markets. MCEX is committed to providing alternative investment opportunities to global investors who seek to make a breakthrough in China’s impact investing,” said Charles Li, Chairman of Micro Connect and MCEX.

Micro Connect has developed a Shariah-compliant screening methodology that filters out non-compliant businesses in the four sectors of retail, services, food & beverage, and culture & sports. The methodology adds a new layer to an already extremely distributed and diversified asset class.

The methodology will also enable issuers looking to issue Shariah-compliant DRPs on MCEX to follow a verification process with the platform and Amanie. Shariah-compliant DRPs would only consist of Shariah-compliant DRO stores screened under such methodology. Daily Revenue Portfolios are products offered on MCEX.

Founded in 2005, Amanie Advisors is a Shariah advisory firm specialising in Islamic finance solutions. It has provided Shariah advisory services for international banks, financial indexes, and investment institutions, including the Hang Seng Islamic China Index Fund and Value Partners’ Shariah China A-Shares ETF.

https://ibsintelligence.com/ibsi-news/micro-connects-mcex-certified-to-offer-shariah-compliant-products/


Comments

Post a Comment

Popular posts from this blog

REGRAS

Image
 (tradução do chinês) Li Xiaojia’s Drip Connect ASX, announced the rules of the exchange yesterday, and can apply for chain brand stores with 10 stores or annual revenue exceeding 5 million Li Xiaojia’s Drip Connect ASX, announced the rules of the exchange yesterday, and can apply for chain brand stores with 10 stores or annual revenue exceeding 5 million Sina Finance APP shrink font enlarge font collect Weibo WeChat share 　　Source: Ryan Capital 　　 Micro Connect Macao  Financial Assets Exchange   (  MCEX  or  MCEX for short  )  was officially put into trial operation in Macau on March 25. 　　 'Diguantong ASX'  officially released  the exchange rules of Diguantong (Macau) Financial Assets Exchange Co., Ltd.  yesterday  (  April  18)  .  Exchange  ("Drip ASX")  Rules  (Trial Implementation  )  is less than a month away. 　　 DRO   (Daily Revenue Obligation)  refers to ...
Read more

Micro Connect announces accounting rules modelled on GAAP

Image
 jan24 Micro Connect has unveiled another major component of its pet project designed to raise global capital for small and medium-sized businesses in mainland China. Under the initial arrangements made for the Micro Connect Macao Financial Assets Exchange, the MCEX Market Accepted Protocol (MAP), as announced at a press conference on Tuesday, is devised to correspond to the Daily Revenue Contract (DRC) or Daily Revenue Obligation (DRO). According to the company, a daily refreshable and publishable MAP, similar to the set of rules widely known as generally accepted accounting principles, provides a comprehensive overview of key static information linked to a DRC. The information includes details such as the contract’s geographical region, industry classification, listing date, anticipated collection amount, and contract duration. In addition, the MAP also serves as a standardised communication framework for data preparation and disclosure, regardless of the business’s geographic lo...
Read more

Financiamento

6/2/24 Micro Connect has announced that it has received support from HSBC Holdings for a loan facility worth US$200 million (MOP1.6 billion). In an announcement made on Monday, the company stated that HSBC would initially provide US$50 million in credit under the asset-backed loan facility. This is not the first time HSBC has provided financial support for Micro Connect, which operates a marketplace to raise global capital for small and medium-sized businesses in mainland China. In December 2022, HSBC arranged a loan of up to US$25 million for Micro Connect, becoming the first bank to do so. Charles Li, the founder of Micro Connect, expressed delight in continuing the collaboration with HSBC as a long-term financing partner. “This new facility is crucial for expanding our business model in China and beyond, as well as helping us transform into a fully disinterested operator of MCEX.” https://www.macaubusiness.com/micro-connect-secures-us200-mln-loan-facility-from-hsbc/ 8/8/23 Financia...
Read more