COAMC Group Members
COAMC successfully completed the introduction of strategic investors

On April 27, 2018, China Orient Asset Management Co., Ltd. (abbreviated as “China Orient”) successfully completed the formalities of industrial and commercial registration for the increase of registered capital, marking the complete success of China Orient in introducing strategic investors.

Over the past year, with the support and guidance of the competent and regulatory authorities, China Orient, following the fundamental principle of returning finance to its roots and guiding services to the main business, and taking the opportunity of introducing strategic investors, has earnestly fulfilled its mission of serving the real economy while preventing and controlling financial risks, and through strict screening and careful selection, it has successfully introduced four strategic investors, namely the National Council for Social Security Fund, China Telecom Group Co., Ltd., Guoxin Capital Co., Ltd. and Shanghai Electric Group Co., Ltd., with a total investment of 18.037 billion yuan.

The successful completion of the introduction of strategic investors is another important milestone for China Orient after its successful completion of restructuring in August 2016. It is also a key step in the three-step reform and transformation plan of China Orient, namely the “restructuring - introduction of strategic investors - listing” plan. The introduction of strategic investors by China Orient has the following three characteristics:

First, ideal structure of strategic investors. The introduction of strategic investors this time involves both the capital increase by National Council for Social Security Fund (an original shareholder of China Orient) and the joining of new strategic investors. All the investors boast strong strength, leading position in their respective industries and strong influence both at home and abroad, and their joining undoubtedly shows their recognition of the development strategies and prospects of China Orient.

Second, huge strategic cooperation space. Sharing high-degree brand fit and rich strategic collaboration points with China Orient, the four strategic investors will next comprehensively strengthen the in-depth cooperation with China Orient in such areas as NPA (non-performing asset) management, SOE (state-owned enterprise) reform, industrial upgrading, stock asset revitalization, mergers and acquisitions and industrial funds, so as to better meet the diversified financial needs of the real economy and vigorously assist the country in implementing major strategies.

Third, significant enhancement of the capital strength of China Orient. During the introduction of strategic investors, the new capital introduced by China Orient totals 18 billion yuan, a new high in the industry. Meanwhile, the valuation regarding the introduction of strategic investors takes into account the value preservation or increase of state-owned assets, the interests of new and old shareholders, the company’s development potential and other factors. Following the introduction of strategic investors, China Orient achieves a capital adequacy ratio of 15.4%, thus further strengthening its capital strength and the ability of sustainable development. China Orient will take this opportunity to further strengthen, optimize and expand its main business, non-performing assets, help deepen supply-side structural reform, and continuously improve the quality and efficiency in serving the real economy.

Upon the successful completion of the introduction of strategic investors, China Orient will, in accordance with the spirits of national policies spirit and the requirements of both competent and regulatory authorities, learn from the successful precedents of other companies in the same industry, pay close attention to the trend of the capital market, and ensure stable progress of its listing work.