King & Wood Mallesons (KWM) and Fangda Partners assisted in Axin Trust’s restructuring in a RMB9 billion (USD1.26 billion) private placement involving the issue of 4.375 billion shares.
KWM’s partners Su Zheng, Liu Dongya, Li Yuanyuan and Wang Ning acted as counsel for Anxin Trust, one of the only two trust companies listed on mainland bourses.
Partners Michael Qi and William Huang at Fangda Partners helped investor Shanghai Dijun Asset Management.
Shanghai Dijun – which was jointly sponsored by state-owned companies including Shanghai Electric, Shanghai International Airport and the China Trust Protection Fund – has now become the controlling shareholder of Anxin Trust with a 50.3% shareholding following the completion of the transaction.
In 2017, Anxin Trust topped the industry rankings with trust business revenue of RMB5.28 billion and ranked second with net profit of RMB3.67 billion. The company managed trust assets of RMB232.6 billion that year, with funds mainly invested in basic industries, real estate and industry.
However, in 2018, Anxin Trust’s revenue plummeted to RMB205 million, a 96% decrease year on year, and recorded a loss of RMB1.833 billion, a 150% decrease year on year, amid exposure to overdue trust products in the real estate industry.
