(China Alert) Turnover among ChinaAMC’s shareholders

-Two minority shareholders sell out of ChinaAMC for RMB4.3bn (USD630m)
-Expectations now rising for more corporate actions (especially among JVs) during 2017

Update: In the latest example of Chinese corporate actions heating up on all fronts, ChinaAMC – the third-largest manager onshore – announced a shareholder change over the weekend that will see 17.8% change hands at an enterprise value of RMB24bn (USD3.5bn). What is particularly interesting is the largest shareholder, CITIC Securities, has waived its first right of refusal to increase its stake. The obvious question becomes who is buying and what role will foreign shareholder Powercorp have in ChinaAMC going forward. Z-Ben Advisors believes this is part of an ongoing trend that will see an uptick in corporate actions among Chinese mutual fund companies.

The buyer(s) is yet to be announced. From where we sit, there are a number of ways this transaction will play out …

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