MCEX Certified to Offer Shariah Compliant Products, Catering to Islamic Investors Looking to Invest Directly in China’s Vibrant Consumer Economy

[HONG KONG, October 26, 2023] Micro Connect Group (“Micro Connect”) is pleased to announce that the Shariah Supervisory Board at Amanie Advisors (“Amanie”), an award-winning Shariah advisory firm, has deemed Micro Connect (Macao) Financial Assets Exchange (“MCEX”) Shariah-compliant, allowing the offerings of Shariah-compliant products on the platform. These products will be one of the first Shariah-compliant products offered in East Asia, further strengthening MCEX’s appeal to Islamic investors.

The certification recognizes 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) which are individual assets that entitle investors to the cash flows of an individual small business in China) 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 globalization 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. With over 10,000 DROs in over 100 different categories in all provinces and over 240 cities in China (and to be expanded to cover other Asian markets in 2024), Micro Connect can now apply even more granular labelling to each individual investment.

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 DROs / stores screened under such methodology. Daily Revenue Portfolios are products offered on MCEX.

For more information, please refer to microconnect.com.

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About Micro Connect

Micro Connect connects global capital with small businesses. Officially launched on August 3, 2023, Micro Connect Macao Financial Assets Exchange (MCEX) is a global exchange platform for the revenue-sharing asset class and represents Macao’s new endeavor to promote the development of innovative finance and Micro Connect’s mission to provide micro and small businesses with access to sustainable and affordable funding. As of the end of December 2023, more than 10,000 micro and small businesses had raised nearly RMB 4 billion from global investors through the platform.

For more information, please visit www.microconnect.com and follow our journey on LinkedIn: Micro Connect | 滴灌通, and WeChat: 滴灌通Micro Connect.