State investment vehicle Central Huijin Investment has just sealed a deal for the transfer of nearly a fifth of its stake in China Everbright Bank to the Everbright Group.
On 20 May Central Huijin and the Everbright Group executed an equity transfer agreement for the transfer of 10.251 billion A-shares held by Central Huijin in China Everbright Bank to Everbright Group.
The shares comprise 19.53% of total equity in China Everbright Bank, while Everbright Group has also issued 15.951 billion shares to Central Huijin as consideration.
Following the move Everbright Group will directly and indirectly hold 25.473 billion shares in China Everbright Bank, accounting for 48.53% of equity.
Domestic analysts say that the shift in Everbright Bank’s equity structure will help pave the way for listing of Everbright Group.
In March 2018 Everbright Group chairman Li Xiaopeng (李晓鹏) said that “creating conditions and choosing an opportune time for listing is the strategic option for Everbright Group to create a world-class enterprise,” although he did not provide a specific schedule for listing.
In September 2019 Wu Lijun (吴利军), party secretary and director of the Shenzhen Stock Exchange, was appointed chair and general manager of Everbright Group, prompting further speculation that the move would bring great expertise to a prospective listing.