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SCMP Reporter

CHINA Everbright Group, once the leading light among China's state-owned firms in Hong Kong, is ready to shine again after three years of reorganisation to expand its financial and securities business overseas.

  The company celebrated its 10th anniversary last week with chairman Qiu Qing saying the group has set up a preliminary development plan for the company up to the year 2000.

  Ms Qiu, a former vice-governor of the People's Bank of China, predicted that Everbright will become a diversified and international conglomerate.

  The group has total assets of $20 billion, about three times the amount of operating capital that it had when it was established 10 years ago.

  The two major subsidiaries are China Everbright International Trust and Investment Corporation (CEITIC) and Everbright China Bank of China with total assets of six billion and four billion yuan (HK$8.04 billion and HK$5.36 billion) respectively.

  Everbright Bank of China is a national commercial bank and was set up in August 1992 with registered capital of 1.5 billion yuan.

  The bank has total assets of more than four billion yuan, in which foreign currency accounts for 42 per cent.

  In the first half of 1993, the bank registered a profit of 409 million yuan.

  The bank has established correspondent relationships with 83 overseas banks, including 13 account banks with 10 foreign currencies.

  The bank's businesses range from renminbi and foreign currency deposit services to loans, remittances, foreign exchange dealing, insurance and financing, leasing and custodian services.

  CEITIC was set up by Ms Qiu in 1991 and now has six correspondent offices, and about 40 subsidiaries, affiliates, and joint venture partners in Beijing, Shanghai, Fujian, Guangdong, Hainan, Sichuan, Hong Kong and Macau.

  The company has been actively involved in securities and property investment during the past 12 months.

  In November 1992, Everbright joined forces with local tycoon Li Ka-shing and Malaysian sugar king Robert Kuok to develop a huge office, hotel and residential scheme in Shanghai.

  Everbright accounts for 25 per cent of the project, which is in the Zhabei district.

  Recently, the group also acquired a 15 per cent stake in Singapore High Den Company.

  Most of Everbright's existing senior executives came from China's banking industry, including the chairman, vice-chairman and the six vice-presidents.

  The group recently head-hunted Wang Xue-bing, the general manager of the People's Bank of China in New York, who joined Everbright as vice-president.

  Everbright's focus on banking and financial business is in line with its team's experience.

  Everbright has also been active in Hong Kong, acquiring 50.95 per cent of a local listed company, Newfoundland International, which will be renamed Everbright International Investment.

  Everbright is to inject its 82 per cent shareholding in a property development in Shanghai's Xuhui district for about US$200 million (HK$1,550 million), according to Newfoundland managing director Wang Yake.

  Newfoundland will increase their assets and expand their shareholder-base with funds raised in the capital markets, Everbright officials say.

  With Ms Qiu's 40 years of banking and finance experience, Everbright is now focusing its attention to these other sectors, a marked contrast to the era of the previous chairman Wang Guangyin.

  However, Ms Qiu acknowledges that her years at the People's Bank of China did not adequately prepare her for the job of head of a large commercial enterprise.

  She likened her early days at Everbright to being similar to ''a primary school student''.

  Former chairman Wang Guangyin was regarded as the most outspoken ''red capitalist'' and Everbright was founded by him under the state council's instruction.

  The brother-in-law of the late president Liu Shaoqi, he was transferred to Beijing after the June 4 1989 crackdown.

  He raised many hackles with his criticism of mainland officials in Hong Kong, whom he denounced as ''unqualified people'', bringing with them bad habits and ''outdated concepts''.

  However, Mr Wang's decision to withdraw from a $1 billion deal with local tycoon Li Ka-shing in 1984 drew fire from some local businessmen.

  Everbright was to have bought more than 1,000 apartments in City Gardens during the property slump precipitated by the Jardine Group's announcement of its redomicile to Bermuda.

 Mr Wang remains as honorary president at Everbright and is now a vice-chairman of the Chinese People's Political Consultative Conference.



Everbright planning to shine overseas