New | China’s Lonking Holdings diversifies investment into asset and wealth products

Lonking Holdings, which manufactures construction machinery & logistic equipment in China, announced on Friday it is investing 1 billion yuan in asset and wealth management products.

The company hopes the investment would improve its capital usage efficiency and boost investment returns to increase its profits, according to its filing to the Hong Kong Stock Exchange on Friday.

The company’s subsidiary, Lonking Shanghai Machinery, deposited 200 million yuan as entrusted assets in Shanghai AEGON Rui Zhong Asset Management on Thursday, May 28.

Meanwhile, its another subsidiary, Lonking (Shanghai) Precision Hydraulic Component, subscribed to wealth management products from Industrial Securities.

The investment of 1 billion yuan will be funded by the company’s internal resources.