News on January 13, China Cinda (01359. HK) announced that after further commercial deliberation, it intends not to participate in its new round of equity subscription after consultation with the target company, Chongqing Ant Group Consumption Gold Company. In response, Chongqing Ant Consumption Gold Company responded that it respects investors' business decisions. Under the guidance of the regulatory authorities, Chongqing Ant Consumption Gold Company will actively consult with investors from all sides, continue to determine a new capital increase plan as soon as possible in accordance with the principle of marketization, and ensure that the rectification of consumer credit business is in place.
Zeng Gang, deputy director of the National Finance and Development Laboratory, believes that in recent years, the regulatory authorities have continued to guide the AMC industry (financial asset management companies and local AMC) to "return to the roots and focus on the main business", continuously improve the core capabilities such as the disposal of non-performing assets, and better play its role in financial risk prevention and resolution. Cinda's failure to further subscribe to and increase its holdings in Chongqing Ant Consumption Gold Company is likely to be due to the requirements of focusing on the main business and the consideration of investment concentration.
According to public information, China Cinda already held a 15% stake in Chongqing Ant Consumption Gold Company last year through its wholly-owned subsidiary Nanyang Commercial Bank. If it further participates in the capital increase subscription, its investment in the single target company of Chongqing Ant Consumption Gold will be relatively concentrated.
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