- Deal would be first Chinese trust firm listing in two decades
- Shandong International Trust in process of selecting banks
Shandong International Trust plans to seek about $300 million from a Hong Kong initial public offering this year, people with knowledge of the matter said, in what could be the first listing of a Chinese trust firm in more than two decades.
The state-controlled financial company is in the process of selecting banks to manage the offering, the people said, asking not to be identified as the information is private.
Chinese trust companies pool money from wealthy investors to finance projects from real estate to coal mines, and more recently stock purchases during last year’s equity-market boom. The industry’s growth has been fueled by demand from corporate borrowers who have difficulty getting loans from state-owned banks, as well as investors eager for products with higher returns.
The last listings from a Chinese trust company were in 1994, when Shaanxi International Trust Co. and AnXin Trust Co. sold shares in the domestic stock market, according to data compiled by Bloomberg. Representatives for Shandong International Trust didn’t immediately respond to e-mails seeking comment, and the company didn’t answer several calls to its headquarters in the eastern Chinese city of Jinan.
A deal would add to the $18 billion of Hong Kong first-time share sales by Chinese financial companies over the past 12 months, according to data compiled by Bloomberg. The China Banking Regulatory Commission issued guidelines last year on the listing requirements for trust companies, making it easier for them to sell shares to the public.
Shandong International Trust had 4.85 billion yuan ($737 million) of consolidated total assets at the end of 2014, according to its website. The company reported 766 million yuan of net income that year.
— With assistance by Fox Hu, and Steven Yang