Paul Hastings Advises China Huarong on RMB 14.5 Billion Share Issuance

September 01, 2014

Beijing/Hong Kong (September 1, 2014) - Paul Hastings LLP, a leading global law firm, announced today that the firm advised China Huarong Asset Management Co., Ltd. ( “China Huarong”) to issue new shares to a consortium of strategic investors including China Life Insurance (Group) Company, Warburg Pincus, CITIC Securities International Company Limited, Khazanah Nasional Berhad, China International Capital Corporation Limited, China National Cereals, Oils and Foodstuffs Corporation (COFCO), Fosun International Ltd. and Goldman Sachs. All parties have entered into investment agreements and strategic partnership agreements regarding the capital increase. The agreements were approved by the State Council and the State regulatory agencies and the transaction was successfully completed.

According to the agreements, China Life Insurance (Group) Company and seven other investors will make additional strategic investments amounting to a total of RMB14.5 billion (approximately US$2.4 billion), accounting for 20.98% of the enlarged share capital of China Huarong upon completion of the transaction. In accordance with restructuring plans approved by the State Council, China Huarong will seek a market window to make a public offering of its shares following the introduction of strategic investors.

China Huarong is the largest financial asset manager in China with total assets of RMB400 billion. It has established a nationwide network covering 30 provinces, autonomous regions, municipalities and the Hong Kong Special Administrative Region with 32 offices (outlets) to offer full-licensed, multi-functional and integrated financial services, including asset management, banking, securities, trust, leasing, investment, funds and futures. China Huarong has established itself as a stated-owned large-scale financial holding group.

The Paul Hastings team was led by corporate partner Nan Li and of counsel Qian Hu, with support from associate Du Su.

P__aul Hastings is a leading global law firm with a strong presence throughout Asia, Europe, Latin America, and the United States. Through a collaborative approach, entrepreneurial spirit, and commitment to client service, the professionals of Paul Hastings deliver innovative solutions to many of the world’s top financial institutions and Fortune 500 companies.