stock market Photo:VCG

Four Chinese financial institutions announced on Friday that their stakeholders plan to transfer shares to Central Huijin Investment,MKsports after which Huijin will control these four financial organizations. 

China Cinda Asset Management Co said in a filing with Hong Kong Exchanges and Clearing that its controlling shareholder - China's Ministry of Finance - has proposed a gratuitous transfer of its 22.14 billion domestic shares in the company, or approximately 58 percent of the total equity, to Central Huijin Investment Ltd.

Upon completion of the transfer, the MOF will no longer hold any shares in the company, and Huijin will become the controlling shareholder, it said, noting that Cinda will still be a state-owned financial institution after the deal.

Additionally, China Orient Asset Management Co and China Great Wall Asset Management Co, both of whose controlling shareholder is the MOF, also announced a gratuitous transfer of the MOF's stakes to Central Huijin.

China Securities Finance Corp also announced on Friday that it has been notified that the company's shareholders will transfer a 66.7 percent stake to Central Huijin.

According to the website of China Securities Finance Corp, the company was incorporated in October 2011, with shareholders including the Shanghai Stock Exchange, Shenzhen Stock Exchange, and China Securities Depository and Clearing Corp.

Central Huijin is a state-owned investment company. Its strategic investments are focused on key state-owned financial enterprises, representing the state in exercising shareholder rights and obligations. The firm is dedicated to preserving and enhancing the value of state-owned financial assets, while avoiding commercial activities unrelated to its mandate and not intervening in the daily management of the companies, according to its official website.

Dong Shaopeng, a senior research fellow at the Chongyang Institute for Financial Studies at Renmin University of China, told the Global Times on Friday that the equity transfer is part of China's financial regulation reform, which is aimed at enhancing governance efficiency and enhancing market competitiveness.

"They will rely more on professional financial institutions to manage risks," Dong said, noting that more such deals are expected in the future.