China’s securities watchdog has approved the country’s first initial public offering by a trust company in more than 20 years.
Shandong International Trust Co. Ltd. won approval from the China Securities Regulatory Commission to sell as many as 676.5 million shares in a Hong Kong share sale, Bloomberg reports, citing a stock exchange filing by one of its shareholders, Luxin Venture Capital Group (600783.CN).
Shandong International Trust plans to seek about US$300 million from the IPO, the report said, citing unnamed sources.
Chinese trust companies, with 18 trillion yuan (US$2.6 trillion) of assets under management as of September, pool money from wealthy investors to invest in securities or finance projects such as real estate and coal mines, Bloomberg said.
The industry’s expansion has been fueled by demand from companies that have difficulty getting loans from banks and investors looking for products with higher returns.
The most recent listings from a Chinese trust company were in 1994, when Shaanxi International Trust Co. Ltd. (000563.CN) and Anxin Trust Co. Ltd. (600816.CN) sold shares in the domestic market, the report said.
Shandong International Trust, established in 1987, had 241 billion yuan of assets under management as of last May, ranking it 20th among the country’s 68 trust firms, according to its pre-listing documents.
CCB International Holdings Ltd., Bocom International Holdings Co. and Haitong International Holdings Ltd. are joint sponsors of the sale.
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