China’s Shandong International Trust Makes History in HK IPO

HONG KONG —¬†Shandong International Trust Co., Ltd. (Stock Code: 1697.HK) commenced dealings on the Main Board of the Hong Kong Stock Exchange yesterday. It becomes the first Chinese trust to get listed in Hong Kong for the past two decades.

Mrs. Wang Yingli, the chairperson of Shandong International Trust stated, “Listing on the Main Board of the Stock Exchange of Hong Kong Limited is an important milestone in the history of the Company. It is a new start for the strategic development target in the future. The Company will take it as the starting point, abide the Listing Rules of the stock exchange strictly and carefully use the proceeds to create better value to return investors and the society.”

China’s trust industry managed a combined 22 trillion yuan of assets at the end of the first quarter of 2017, up 25 per cent year on year, according to figures from China Trustee Association. Analysts said a Hong Kong IPO has become a relatively better choice for trust firms, as mainland regulators view direct A-share listing plans with caution.

SDITC is a comprehensive financial and wealth management service provider in China, utilizing their trust products to provide diversified financing and investment services. Trust business is the core business. Utilizing the flexibility of trust arrangements under PRC laws, SDITC has developed a broad range of trust products to satisfy the financing, investment, wealth management and succession needs of various types of clients.

Shandong International Trust Co., Ltd. ranked 6th among all trust companies the controlling shareholders of which have local government background and ranked 25th among all trust companies in China in terms of total trust assets in 2016 according to Wind Info.

Under the macroeconomic environment, the trust industry in China also faces many challenges. SDITC have successfully withstood economic and market fluctuations over the past few years and achieved rapid growth. The trust AUM of all of SDITC’s trusts increased from RMB112,392 million as of December 31, 2011 to RMB254,637 million as of December 31, 2016, representing a CAGR of 17.8%.

With the rapid development of Shandong’s economy, the number of HNWIs in Shandong increased rapidly in recent years. The large number of HNWIs in Shandong has provided SDITC a huge potential client base for the development of the trust business and, in particular, SDITC’s personal wealth management and family trust businesses. As of May 31, 2017, SDITC had 17,348 trustor clients from Shandong, which accounted for 32.5% of SDITC’s total trustor clients. SDITC believes the continued increase in the number of HNWIs in Shandong will provide a solid potential client base for the future development of SDITC’s trust business.

Looking ahead, based on the status of its current business development, and as China’s economic development has entered the “new normal” stage, the Company intends to take advantage of the changes. SDITC intends to continue to strengthen traditional business, enhance active management capabilities, rapidly expand trust business that provide asset management and wealth management services, capture new business opportunities through continuous innovation, and build up brand image as a high-quality and trustworthy financial service provider in China.