JunHe advised Harvest Global Investments Limited (“HGI”) on its successful establishment of a Hong Kong-based open-ended fund company regulated by the Securities & Futures Commission of Hong Kong (“SFC”), realizing the tokenization of the fund product on the public blockchain. This was the first fixed-income tokenized fund ever launched by a Chinese financial institution in Asia. Its official launch reflects the results of the implementation of the tokenization policy in Hong Kong. In the offering of the fund product, HGI acted as the fund sponsor and manager, and Meta Lab HK acted as the tokenization solution provider.
As the legal counsel to HGI, JunHe provided comprehensive legal support and advice throughout the entire process from the launch of the project, the finalization of the fund documents and tokenization arrangements, to the submission of filings regarding the open-ended fund company and the sub-funds to the SFC. JunHe made every endeavor to facilitate the successful completion of the project.
HGI is a trailblazer in the blockchain-based digitalization of traditional fund products. This innovative application is rare in the financial industry, which gives HGI a unique competitive advantage in terms of technology and the market. Although the concept of the “tokenization of traditional financial instruments” has aroused widespread attention and interest in the market, there are few successful cases in practice due to limited precedents. With a deep understanding of blockchain technology, the industry, the experience of other countries and product structures, the parties to this transaction designed the transaction structure and drafted the transaction documents to combine blockchain technology and traditional fund products. With proactive exploration of the tokenization of traditional financial instruments, this transaction provides a valuable example for the offering of tokenized securities, a cutting-edge business in the field of digital assets that has attracted great attention.
Dedicated to promoting the innovative development of the fund tokenization industry in Hong Kong, JunHe will continue to provide outstanding legal services and support to its clients. We are proud to have witnessed and been a key part of our clients’ success and look forward to further cooperation on more projects.
The JunHe team was led by partner DE, Lihua (Theresa) and counsel WANG, Weiwei. Counsel WANG, Weiwei and partner ZHANG, Zhijin (Jean) were responsible for the establishment of the fund, and partner QIAO, Zheyuan (Jacqueline) was responsible for the fund tokenization.