Hong Kong's Far East Horizon Ltd. agreed to sell underlying assets of two subsidiaries to a unit of Huatai Securities Co. Ltd. for 3.92 billion yuan.

Under the agreements, Huatai Securities (Shanghai) Asset Management Co. Ltd. will buy the underlying assets of International Far Eastern Leasing Co. Ltd. and Far Eastern Horizon (Tianjin) Financial Leasing Co. Ltd. for 2.77 billion yuan and 1.15 billion yuan, respectively, according to a Dec. 15 company release.

The underlying assets represent the rights and interests of the companies related to certain finance leases. The terms of the deals are subject to necessary approvals.

Far East Horizon said the sale will result in a net gain of around 25 million yuan. The net proceeds will be used for future finance lease transactions.

As of Dec. 15, US$1 was equivalent to 6.94 Chinese yuan.