China’s former asset acquirer Anbang seeks to raise US$3.9 billion from selling stake in Chengdu Rural Bank

Beijing-based Anbang and its affiliates are selling 5.5 billion shares in Chengdu Rural Commercial Bank for 26.2 billion yuan, according to a filing with the Beijing Financial Assets Exchange

Anbang is also looking to sell stakes in 11 rural banks for a total of 85 million yuan, according to a separate filing

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A surveillance camera is seen in front of the Anbang Insurance Group office building in Beijing, Wednesday, April 4, 2018. Photo: AP

Published: 10:48am, 2 Jan 2020Updated: 11:15pm, 2 Jan 2020

Anbang Insurance Group, the once-acquisitive Chinese conglomerate that’s under state control, is looking to offload stakes in a number of rural commercial banks as it continues to unwind its holdings.

Beijing-based Anbang and its affiliates are selling 5.5 billion shares in Chengdu Rural Commercial Bank for 26.2 billion yuan (US$3.8 billion), according to a filing with the Beijing Financial Assets Exchange. Anbang is also looking to sell stakes in 11 rural banks for a total of 85 million yuan, according to a separate filing.

Anbang’s global buying spree made it emblematic of China’s unbridled appetite for international trophy assets. That era ended when authorities seized control of Anbang in February 2018 and later sentenced Chairman Wu Xiaohui to 18 years in prison for fundraising fraud and embezzlement. Officials then began selling some of the assets it had accumulated, including luxury hotels in the US, office buildings in Canada and a life insurance company in South Korea.

The China Banking & Insurance Regulatory Commission (CBIRC), Anbang’s ultimate custodian, didn’t respond to a fax seeking comment.

The CBIRC said in July that risks surrounding Anbang have been curbed because more than 1 trillion yuan of assets have been, or are being, stripped away.

Anbang had previously tried to offload its direct 35 per cent stake in Chengdu Rural Commercial Bank in December 2018 for 16.8 billion yuan. This time around, it’s looking to sell that interest for only a slightly reduced 16.5 billion yuan. Any potential buyers would need to make one full payment for both the direct and affiliated stakes, according to the December 30 exchange filing.

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