ZhongAn’s shares receive boost from China joint venture deal
Hong Kong-listed online insurer’s chairman Ou Yaping has stakes in both parties involved in the agreement to set up a company in Chongqing
Shares of ZhongAn Online Property & Casualty Insurance, Hong Kong’s newly listed fintech company, rose 5.7 per cent to HK$91.50 in Thursday’s morning session, after the insurance platform announced a joint venture deal with a company controlled by its promoter— its first since the initial public offering.
The shares eased later and eventually closed 2.5 per cent higher at HK$88.75.
ZhongAn said it had entered into a related party agreement with Sinolink Worldwide (HK), a company controlled by the firm’s chairman Ou Yaping, to set up a small loan joint venture (JV) in Chongqing in western China.
Sinolink Worldwide is a wholly-owned subsidiary of Sinolink Worldwide Holdings, with 45.1 per cent owned by ZhongAn’s Ou.
Ou also controls a more than 15 per cent stake in ZhongAn through companies owned by him and his brother, Ou Yafei, according to the prospectus.
The JV, which is unnamed as yet, will have a registered capital of 300 million yuan (HK$357 million), in which ZhongAn has agreed to contribute 70 per cent or 210 million yuan, and Sinolink Worldwide (HK) the remaining 30 per cent.
The company said it will provide loans, discounted notes, fund transfer and equity investments as permitted by the Chongqing Finance Office.