Shanghai Chongyang Asset Management Ltd, a well-known private equity (PE) in China, has recently put 10 million shares, or a 0.2128 percent stake, in Guotai Junan Securities Co Ltd for auction on the Shanghai United Assets and Equity Exchange, the 21st Century Business Herald reported on Wednesday.
The initial bidding price was 132 million yuan, or 13.2 yuan per share, and the trade time was from Feb 25 to Mar 25, the newspaper said.
This is the second time in three months that Chongyang transferred shares of Guotai Junan Securities. The company had sold 10 million shares of the securities, at 13 yuan per share, in December.
A top official at Chongyang Asset Management denied reports that the sale was due to the securities' failure on the public listing, but said the company wanted to diversify risk and make their asset allocation sounder. The official also said Chongyang may invest in other industries, such as consumer companies and manufacturing businesses.
Chongyang Asset Management would still hold 50 million shares of Guotai Junan Securities after the sale. The official said the company may continue transferring the remaining shares if the price was reasonable.
According to statistics, over 400 million shares from four securities were sold in February, which included Shenyin & Wanguo Securities, Orient Securities, Tebon Securities and Guotai.
