As per the CEO's quarterly report announced today on 20 April 2017, Hanlong shares (around 19.7 per cent) will be owned by China Development Bank soon
Do you understand what is meant by the above statement? CDB is Chinese state-owned bank. In other words, 19.7 per cent of SDL will be owned by Chinese Government.
If you do not know, please read the following link:
The China Development Bank (CDB) (simplified Chinese: 国家开发银行; traditional Chinese: 國家開發銀行; pinyin: Guójiā Kāifā Yínháng) is a financial institution in the People's Republic of China (PRC) led by a cabinet minister level Governor, under the direct jurisdiction of the State Council. As one of three policy banks of the PRC, it is primarily responsible for raising funding for large infrastructure projects, including most of the funding for the Three Gorges Dam and Shanghai Pudong International Airport. Established by the Policy Banks Law of 1994, the bank is described as the engine that powers the national government’s economic development policies.
Debts issued by CDB owned by local banks are treated as risk free assets under the proposed People's Republic of China capital adequacy rules i.e. same treatment as PRC government bonds. The bank is the second-biggest bond issuer in China after the Ministry of Finance in 2009, accounting for about a quarter of the country’s yuan bonds, and the biggest foreign-currency lender
SDL Price at posting:
0.4¢ Sentiment: Buy Disclosure: Held
.png){kind=small}
