China Everbright Unit’s Shares Climb as Group Revamp Moves AheadPaul Panckhurst
China Everbright Ltd. rose to the highest since 2011 in Hong Kong trading after government entities signed an agreement that’s part of the restructuring of the China Everbright group of state-owned companies.
The Ministry of Finance and Central Huijin Investment Ltd. agreed on Nov. 6 to subscribe for 44.3 percent and 55.7 percent respectively of the registered capital of China Everbright Group Ltd., a vehicle for transforming the state-owned enterprise. That’s according to an exchange filing yesterday by Hong Kong-listed financial unit China Everbright Ltd.
The unit rose 4.8 percent as of 10:09 a.m. local time, taking its gain this year to 35 percent, compared with the 2.6 percent increase in the benchmark Hang Seng Index.
As the Communist Party pledges a bigger role for markets in the economy, makeovers for government businesses have included Citic Group -- China’s first state-owned investment corporation -- shifting assets into a Hong Kong-listed unit. Chinese state-owned enterprises have announced at least $48 billion of restructuring deals this year, data compiled by Bloomberg show, as the government seeks to boost profitability and make them more competitive.