Great Wall pre­pares for public of­fer­ings

Man­ager of dis­tressed as­sets to fo­cus on SOE re­struc­tur­ing and Shang­hai, HK IPOs

China Daily (USA) - - BUSINESS | MARKETS - By JIANG XUEQING jiangx­ue­qing@ chi­nadaily.com.cn

China Great Wall As­set Man­age­ment Cor­po­ra­tion will start prepara­tory work for an ini­tial public of­fer­ing in the main­land and Hong Kong next year.

As one of the coun­try’s four largest State-owned man­agers of dis­tressed as­sets, China Great Wall is ac­tively push­ing for­ward its trans­for­ma­tion from a State-owned en­ter­prise to a joint stock com­pany.

“Our ini­tial plan is to hold the in­au­gu­ra­tion cer­e­mony of the joint stock com­pany at the end of this month and the un­veil­ing cer­e­mony in De­cem­ber. The new com­pany will com­plete the in­tro­duc­tion of strate­gic in­vestors in the third quar­ter of 2017, or at the end of next year,” said Zhang Shixue, gen­eral man­ager of the as­set man­age­ment com­pany’s strate­gic de­vel­op­ment depart­ment, at a news con­fer­ence.

Its trans­for­ma­tion fol­lows the­un­veil­ing cer­e­mony ofChina Ori­ent As­set Man­age­ment Co Ltd in Oc­to­ber as a com­mer­cial­ized State-con­trolled com­pany. China Cinda As­set Man­age­ment Co Ltd listed in 2013 and China Huarong As­set Man­age­ment Co Ltd also did so in 2015 — both in Hong Kong.

In the next three years, China Great Wall is plan­ning to set up 100 sub­sidiary funds to­tal­ing 300 bil­lion yuan ($43.5 bil­lion), based on its three ex­ist­ing funds, to sup­port­China’s eco­nomic re­struc­tur­ing, in­dus­trial up­grad­ing and the res­o­lu­tion of fi­nan­cial risks.

Its Vice-Pres­i­dent Zhou Liyao said the com­pany has es­tab­lished three funds, each worth 10 bil­lion yuan, fo­cus­ing on the ac­qui­si­tion, dis­posal and re­struc­tur­ing of non­per­form­ing as­sets, as well as on ca­pac­ity re­duc­tion in the hous­ing mar­ket.

The com­pany is now more fo­cused onM&As and re­struc­tur­ing of large State-owned en­ter­prises. Its in­vest­ment in those busi­nesses in­creased by 50 per­cent year-on-year.

InHe­bei prov­ince, it set up a 10 bil­lion yuan in­dus­try de­vel­op­ment fund jointly with Hes­teel Group Co Ltd, a ma­jor steel­maker, to in­te­grate the group’s sub­sidiaries, sup­ply chain and mar­ket­ing sys­tem and help Hes­teel im­prove the level of smart man­u­fac­tur­ing in its main busi­ness and its ca­pa­bil­ity to de­velop new ma­te­ri­als and new tech­nolo­gies.

Cur­rently, China Great Wall has ex­panded its busi­ness from the re­struc­tur­ing of dis­tressed as­sets to the re­struc­tur­ing of fi­nan­cial as­sets, com­pa­nies and in­dus­tries, plus cross-bor­der merg­ers and ac­qui­si­tions, Zhou said.

A QING / FOR CHINA DAILY

A China Great Wall As­set Man­age­ment Cor­po­ra­tion booth at an in­ter­na­tional fi­nan­cial tech­nol­ogy ex­hi­bi­tion in Bei­jing.

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