Yangzijiang Shipbuilding injects 1b yuan into Chinese investment vehicle

YANGZIJIANG Shipbuilding (YZJ) will inject one billion Chinese yuan (S$204.46 million) through a wholly owned subsidiary into an investment holding company in Jiangsu, China.

YZJ said that Jiangsu Yangzijiang Shipbuilding Co has entered into an agreement with several partners to establish the first non-state-owned investment holding company in Jiangsu with 8.6 billion yuan of registered paid-up capital.

Jiangsu Yangzijiang will subscribe to 11.63 per cent equity interest at one billion Chinese yuan as a co-founder in Jiangsu Non-state-owned Investment Holding Co (JNIHCO).

Three partners named in the disclosure to the Singapore Exchange (SGX) on Monday are state-owned enterprises Hodo Group, Shagang Group and GCL Group.

A separate Chinese release obtained by The Business Times has named in all, six partners excluding YZJ in JNIHCO. JNIHCO has also been registered in the Chinese city of Wuxi, where most of its shareholders as based, the release said.

JNIHCO chief executive Hu Yin said in the release that the newly set-up investment holding company will anchor on four business platforms: building up an integrated financial services network; participating in consolidation of traditional industries and restructuring of state-owned enterprises; providing institutions and individuals with asset and wealth enhancement services; and facilitating international mergers and acquisitions.

YZJ chairman Ren Yuanlin said in an interview with a Chinese financial publication that JNIHCO, in contrast to bank financing, enjoys greater flexibility in investing in small to medium-sized enterprises (SMEs), especially those with high growth potential and undergoing transformation.