As a large tire producer, Zhongce Rubber has been considered as a state-owned enterprise. However, an industry insider disclosed that the company shouldn’t be an SOE any more, is that real?
Where’s the state-owned equity?
The proportion of state-owned equity in Zhongce Rubber has been diluted by private capital.
Zhongce Rubber applied in 2014 to transfer about 25% state-owned equity in it and intangible assets, including the trademark of “Chao Yang”.
BOCGI Zheshang Investment Fund Management Co., Ltd., CITIC Private Equity Funds Management Co., Ltd., Fosun Capital, and SANY Group jointly invested in Zhongce Rubber in the end of 2014.
The four held 60% stake in Zhongce Rubber, reducing the latter’s state-owned equity to 40%.
Complex investment relation
The business type of Zhongce Rubber has been changed to a limited liability company jointly invested by Taiwan, Hong Kong, or Macao and the Chinese mainland.
The information of its board member had a significant change in May 2015, when the number increased from 6 to 10, capital of a number of funds and investment institutes’ entered the company, including foreign capital.
An industry insider said CITIC Group is the largest board member of Zhongce Rubber.
CSI Starlight Co., Ltd., Hangzhou Yuanxin Dongchao Equity Investment partnership, Hangzhou Yuanxin Chaohe Equity Investment Partnership, and Mianyang Yuanxin Dongchao Equity Investment Center all hold considerable stakes in Zhongce Rubber.
The relationship among these firms is extremely complex, but behind them there is CITIC Group.
Established in 1979, CITIC Group is a state authorized investment institute and its subsidiary is listed in Hong Kong stock market.
The situation fits the business type of Zhongce Rubber.
Who are the foreign capital？
It is difficult to count out how many shares of Zhongce Rubber are in the hands of foreign capital.
But according to public information, Singapore-based investment company Temasek is one of them.
Although Temasek is not in the list of Zhongce Rubber’s board members, a source in the financial sector said Esta Investments Pte. Ltd. is actually Temasek.
Esta Investments Pte. Ltd. holds 68,333,704 shares in Zhongce Rubber.
