Major Chinese steelmaker Baowu Group has signed agreements with China Chengtong Holding Group (Chengtong Holding) and China Reform Investment (China Reform Investment) to transfer a 20.1788 percent stake in Zhejiang Province-based Chinese steel producer Hangzhou Iron and Steel to the two parties in question for free. After the transfer, Baowu Group will hold just a 0.0012 percent stake in Hangzhou Steel down from the previous 20.18 percent, while Chengtong Holding will hold 15.19 percent of the transferred stake, and China Reform Investment will hold 4.99 percent.
The transfer in question is expected to further optimize the shareholding structure of listed state-owned holding companies and promote the pilot work of state-owned capital operating companies.
State-owned Capital Management Company is the parent company of Chengtong Holding and China Reform Investment. Its main task is to carry out state capital operations, promote the rational flow of state capital and maintain the increase of value.