CoAssets successfully crowdfunds project in China

Sunsets in Fuzhou
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  •  First deal funded in China by Chinese lenders on the CoAssets’ Platform
  • Highlights Company’s growth within the region Australia’s first listed crowdfunding platform CoAssets Limited (“CoAssets” or the “Company”) (NSX code: CAX), is pleased to announce that the Company has successfully crowdfunded its first project in China via its local platform, CoAssets China.

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The deal was to crowdfund the renovation of a private social venue in the Gulou District in Fuzhou, one of the largest cities in the province of Fujian. The amount of RMB1million, equivalent to A$206,000 was successfully raised in just 7 days. As a form of additional security, CoAssets China is holding the business owner’s 5 private apartments worth RMB4million (A$822,000) as collateral until the repayment is paid in full.

Lenders were attracted by the low risk the deal presented with the security of the owner’s assets, together with the attractive targeted rate of return of 10% per annum. The entry point to take part in the deal was of RMB5,000 (approx. A$1,000). The success also highlights the reliability of the platform and underscores the interest in crowdfunding by Chinese investors.

CoAssets launched its local in-country crowdfunding website in China in May this year, via the Joint Venture with Fujian Yaosheng Zichan. This is the first deal raised by Chinese lenders on the CoAssets’ platform. China has seen consistently solid growth in crowdfunding, being the largest online alternative finance market in Asia-Pacific by transaction value. Morgan Stanley Research estimates that peer to peer lending will grow to$127bn in China by 2020.

The business seeking the investment commented: “We went to CoAssets China as we found it encouraging that the holding company is an Australia listed entity, which gave us reassurance on the company’s credibility and disclosure. Apart from good corporate governance of a listed company, we knew of CoAssets’ reputation in Asia, and look forward to future collaborations with CoAssets via its pool of international investors.”

Mr Getty Goh, Co-founder & CEO of CoAssets

Mr Getty Goh, Co-founder & CEO of CoAssets

Commenting on the deal, CEO of CoAssets Mr Getty Goh mentioned:

We are extremely pleased by the successful deal completion in China, showing that there is interest and demand for our online alternative financing model, and that we are successfully connecting lenders and borrowers. We are establishing a big footprint in different regions, and it’s great to see deals funded in such a short amount of time. Small to medium business crowdfunding is the newest area we have entered, following real estate, and we are very pleased to see the initial flow of our business crowdfunding deals coming in.

 

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About CoAssets.com (NSX Code: CAX)

CoAssets is one of South-East Asia’s leading crowdfunding platforms, which is listed on the National Stock Exchange of Australia. It is not licensed and/or regulated by the Monetary Authority of Singapore. Officially launched in Singapore in July 2013, it currently has more than 49,000 registered users., and the amount successfully funded stands at more than S$43 million (US$30 million). The company won the Red Herring Top 100 Asia Award for 2014, as well as OPP Gold Award for Excellence and currently has offices in Australia, Malaysia and Singapore.

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