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Two investment firms, including one controlled by China's largest lender, confirmed that they would invest in the crisis sector. Jinzhou Bank as part of a restructuring effort.
The Industrial and Commercial Bank of China (ICBC) will not invest more than 3 billion yuan ($ 435.2 million) in a private bank, the Jinzhou Bank, through a wholly-owned subsidiary. ICBC Financial Asset Investment Co., Ltd. for a 10.82% stake in ICBC, listed in Jinzhou, Hong Kong and Shanghai, announced Sunday night. ICBC is the largest bank in the world in terms of revenues and profits.
Also on Sunday, Cinda Asset Management Co. Ltd., one of China's four largest badet management companies (AMC), listed in Hong Kong, announced that its subsidiary, Cinda Investment Co. Ltd., would invest unspecified amount in Jinzhou in exchange for a stake of 6.49%.
Shares listed in Hong Kong of Jinzhou have been suspended since April due to its inability to publish an annual report for 2018. The bank's auditors resigned in late May, citing inconsistencies in the bank's financial statements for 2018 that had impossible to complete the audit process.
Sources close to the agreements had earlier announced to Caixin that, in addition to the ICBC and Cinda subsidiaries, China Great Wall Asset Management Co. Ltd., another of the "big four" AMC, would also participate in the Jinzhou restructuring. as an equity investor. The Great Wall has yet to make an official announcement.
Read the full story of Caixin Global later today.
Contact reporter Teng Jing Xuan ([email protected])
Related: Exclusive: Who will save the troubled bank of Jinzhou?
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