In response to a media report that China Zheshang Bank provided 13.3 billion yuan of funds to back Shenzhen Jushenghua Co., Ltd.'s leveraged share buying in China Vanke Co., Ltd. (000002.SZ), the bank said on Thursday that Jushenghua is only allowed to buy shares in non-listed firms with the bank's funds.
The bank said in an announcement published in earlier Thursday morning that it subscribed 13.3 billion yuan worth asset management plan from Huafu Securities with the bank's own wealth management fund. Juhuasheng is only permitted to buy shares in non-listed companies' shares and is not allowed to invest in the secondary market.
A media report published on Wednesday said that Shenzhen Juhuasheng set up Shenzhen Zheshang Baoneng Industrial Investment Partnership Co., Ltd. with a registered capital of 20 billion yuan, of which 6.7 billion yuan was from Jushenghua and 13.3 billion yuan was financed from Huafu Securities.
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