China’s Hengfeng Bank said to aim listing in five years

Traffic move down the third ring road in Beijing, China, on Monday 15 May, 2017. Photographer: Qilai Shen/Bloomberg

China’s Hengfeng Bank will aim to list in five years after completing a restructuring, state media Xinhua reported a senior bank official as saying, part of government efforts to support indebted smaller banks.

The bank, based in eastern Shandong province, has been undergoing a restructure since 2017 when the banking and insurance regulatory watchdog appointed its staff to head up the lender due to management and liquidity issues.

Former chairman Jiang Xiyun was found guilty of corruption and sentenced to death in December, with a two-year reprieve.

“The risk has been dissolved. The next step will focus on improving corporate management and strengthening risk control… and (the bank) will aim to list in five years,” Chen Ying, Hengfeng‘s chairman, said in the Xinhua report on Sunday.

Hengfeng received 100 billion yuan ($14.46 billion) in strategic investment as part of the restructuring process led by local government, in line with government efforts to ease risk in the country’s financial system.

Central Huijin Investment Ltd, an investment arm of country’s sovereign fund, China Investment Corp (CIC), purchased 60 billion yuan of shares in the sale, and Shandong Financial Asset Management, a local government-backed financial asset management firm purchased 36 billion yuan of shares.

Singapore’s United Overseas Bank and other investors bought the remaining 4 billion yuan in shares, it added.

Concerns over Hengfeng were rekindled last year by the state seizure of Baoshang Bank, and the state rescue of Bank of Jinzhou, which sharpened concerns about the health of hundreds of small lenders as China’s economic growth slows to near 30-year lows.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.