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China Zhongwang Bids to Improve Valuation With Shanghai Listing

  • Company addresses undervaluation in Hong Kong: Guotai Junan
  • Aluminum firm was target of short-seller attack last year
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Aluminum-maker China Zhongwang Holdings Ltd. said it will spin off its industrial extrusion business and list in Shanghai, as it bids to improve its valuation among investors.

The deal involves an asset swap with a Shanghai-listed Chinese property company, whereby China Zhongwang will sell Liaoning Zhongwang Group Co. to CRED Holding Co. for 28.2 billion yuan ($4.3 billion), and in return receive majority control of the Beijing-based realtor, according to a statement Wednesday. By injecting its extrusion unit into CRED Holding, Hong Kong-traded China Zhongwang will achieve a listing in Shanghai, it said.