On March 26, 2014, Ningbo Regulatory Bureau of China Securities Regulatory Commission (CSRC) approved China Industrial International Trust Limited (hereinafter referred to as “Industrial Trust”) to become a shareholder of Ningbo Shanli Futures Co., Ltd. (hereinafter referred to as “Shanli Futures”) by holding 29.7% of the stock rights of Shanli Futures.
Established in 1994 with the registered capital of RMB 100 million, Shanli Futures was registered at Ningbo, Zhejiang with the State Administration for Industry & Commerce of the People’s Republic of China. As a large professional futures company obtaining the futures business license issued by the CSRC, Shanli Futures is a member of Shanghai Futures Exchange, Dalian Commodity Exchange, and Zhengzhou Commodity Exchange and a trading member of China Financial Futures Exchange, with the business qualifications of commodity futures brokerage, financial futures brokerage, and futures investment consulting. Besides the headquarters in Ningbo, Shanli Futures also established 7 business offices in Shanghai, Wenzhou, Taizhou, Cixi, Yuyao, Jinzhou and Ninghai.
Industrial Trust, as one of its shareholders and the third trust company of a banking background in China, is established under the control of Industrial Bank (IB) with the consent of the State Council and the approval of China Banking Regulatory Commission (CBRC). By the end of 2013, the trust business scale managed by Industrial Trust hit RMB 563.286 billion, ranking No. 2 in the Chinese trust industry; and the registered capital of Industrial Trust reached RMB 5 billion. After the capital increase, the company further satisfied the regulatory requirement for management of net capital, reinforced its risk resistance and increased its demands for external financial equity investment.
With the accelerated reform in China’s financial system, integrated financial operation has become a kind of irreversible tide and tendency. In recent years, Industrial Trust brought into full play the institutional advantages of the trust industry in financial equity investment and accelerated its strategic arrangement in financial equity investment, exerting itself to building a comprehensive financial service platform. Now, Industrial Trust is a shareholder of Chongqing Machinery & Electronics Holding Group Finance Co., Ltd., Zijin Mining Group Finance Co., Ltd. and GF Huafu Securities Co., Ltd., and establishes its solely owned private equity investment subsidiary – China Industrial Asset Management Limited, seeing desired returns on equity investment. To become a shareholder of Shanli Futures this time, Industrial Trust aims to seek new business growth points through integrated business operation, realize multiple business development of the company and enhance the sustainable business operation of the company constantly. Industrial Trust will also push its development in the area of securities investment related trust businesses by making full use of the commodity futures and financial futures trading platforms.
With Industrial Trust becoming a shareholder of Shanli Futures, the entire group of Industrial Bank (IB) also sees a big stride forward in its integrated business operation. The IB Group now has professional financial institutions in trust, financial lease, fund and PE. Industrial Trust’s holding shares of Shanli Futures is helpful to reinforce the coordinative effect of integrated business operation across the whole group of IB. Meanwhile, with shares held by Industrial Trust, Shanli Futures can also depend on the advantages of the banking group to have cooperation in a concerted manner and drive product innovation and business innovation in the area of financial derivatives. In this way, customers of the group may have access to financial services of better quality.