30 March 2012
Clifford Chance advises on first-ever foreign investment in a Chinese financial asset management company
Leading international law firm Clifford Chance has advised Standard Chartered Bank on its investment in China Cinda Asset Management Co. Ltd. (Cinda), along with three other strategic investors, National Council for Social Security Fund, UBS AG and CITIC Capital. The four strategic investors invested a total of RMB10.37 billion (approximately US$1.64 billion) and will hold an aggregate of 16.54% of the enlarged share capital of Cinda. All regulatory approvals for the transaction have been obtained.
This transaction represents the first-ever foreign investment in a Chinese financial asset management company. Cinda is one of the earliest-established State-owned financial asset management companies in China, a joint stock company wholly owned by China's Ministry of Finance. Cinda manages non-performing assets and restructures distressed institutions under custody, and has more recently become an integrated financial group providing a wide array of financial services to its customers.
"We are delighted to have participated in this landmark transaction", said Corporate partner Terence Foo, who led the team on this deal. "This represents a milestone in the transformation of asset management companies and their role in the wider financial services sector in China."
Terence was assisted by counsel Wei He and Hao Jin, associate Xingxing Li, and trainee Dandan Liu. Partners Jeff Berman (New York) and Simon Crown (London) provided US and UK regulatory advice. Partner Russell Wells (London) and associate Ashan Fernando (London) also provided support.