China's Southwest Securities Co. Ltd. plans to transfer part of its stake in Chongqing Share Transfer Center Co. Ltd. and relinquish majority control in the unit to meet industry supervision requirements.
The company said Dec. 13 that it will sell a 19% stake in Chongqing Share Transfer Center to Chongqing Yufu Assets Management Group Co. Ltd. for 61.9 million yuan, subject to regulatory approval. The proposed sale will bring Southwest Securities' stake in the unit to 34% from 53%. Meanwhile, Chongqing Yufu Assets' stake in Chongqing Share Transfer Center will increase to 51%.
Southwest Securities said the proposed sale is expected to raise its investment income by 21 million yuan and help it meet regulatory requirements.
Chongqing Share Transfer Center provides equity financing and restructuring services.
As of Dec. 12, US$1 was equivalent to 6.88 Chinese yuan.