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China Credit Trust expands equity capital
By Sun Min (China Daily)
Updated: 2004-03-20 08:47
China Credit Trust Co Ltd announced on Friday that it has expanded its equity capital from 400 million yuan (US$48.19 million) to 1.2 billion yuan (US$144.9 million) and is seeking foreign strategic investors.
The increased capital will further enhance the company's financial strength and pave the way for its business expansion, said Wang Zhongmin, chairman of the Beijing-based trust and investment company, at a press briefing on Friday in Beijing.
"We will try to upgrade our investment structure and take part in a diversified range of financial institutions, including securities, fund management, insurance and futures businesses, to provide comprehensive financial services to our clients," he said.
Presently, the company already owns controlling rights in a securities house and a fund management company, said Wang.
But this year, it hopes to acquire stakes in a domestic futures brokerage and an insurance firm, he told reporters on Friday.
In the next step, it may invest in other financial institutions. Shareholding banks are also a possible target, though this may require more lenient regulatory policies, Wang said.
During the latest capital expansion, two new shareholders, both State-owned power companies, were introduced into the trust company. Its net assets also tripled to 1.86 billion yuan (US$224.6 million), but it is still basically owned by the State.
"But we also have plans to introduce foreign investors and will try to realize a public listing later on," said Wang.
The company, originally named Chung Mei Trust & Investment Co Ltd, with large investment in the coal industry, was renamed last month, which represented an adjustment of its strategy to become more diversified in business structure.
Its own assets totalled 2.1 billion yuan (US$253.6 million) by the end of 2003. The assets put under its trust by the clients were 7.5 billion yuan (US$905.7 million) then, company sources said.
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