King & Wood Mallesons (KWM) has advised China Huarong Asset Management Co., Ltd. (China Huarong), the largest financial assets management company in China by assets, on its successful listing on the main board of Hong Kong Stock Exchange (Stock Code: 2799). The listing saw China Huarong issue approximately  5.77 billion H shares (before exercising the over-allotment option). Pricing its shares at HK$3.09 per share, the company raised approximately HK$17.9 billion.

China Huarong is a non-banking financial enterprise which was co-established by the Ministry of Finance and the China Life Insurance (Group) Company.  It is the largest state-owned financial assets management company by assets and net profit, and on average delivers one of the highest rates of return on equity in China. This listing is yet another significant fundraising project the King & Wood Mallesons corporate and securities team has worked on with China Huarong: we have previously advised China Huarong on thel, company’s introduction of seven strategic investors, including Warburg Pincus, CITIC Securities Co., Ltd., Khazanah Nasional Berhad, China International Capital Corporation, China National Cereals Oils and Foodstuffs Corporation, Fosun International Limited and Goldman Sachs.

KWM acted as the PRC legal counsel to the issuer, fully supporting our client on the PRC legal aspect of the project. The KWM legal team was led by partner Tang Lizi, supported by partners Su Zheng, Hu Qian, Li Yuanyuan and Peng Jin. KWM real estate partner Fang Rong and Financial & Capital Markets partner Armstrong Chen assisted on the real estate and regulatory aspects of the deal.