TORONTO, Dec. 2, 2016 /CNW/ - Sunwah International Limited,TSX: SWH (the "Company"), an Asian based financial services firm, today announced that its main, HKEx-listed subsidiary in Hong Kong, Sunwah Kingsway Capital Holdings Limited ("Sunwah Kingsway"), has, through its indirect wholly owned subsidiary, Kingsway Financial Services Group Limited ("Kingsway Financial"), entered into a joint venture contract ("JV Contract") to establish a fully licensed securities company in Chongqing city, the People's Republic of China ("PRC"). Pursuant to the JV Contract, subject to the conditions precedent therein, Kingsway Financial shall subscribe for 22% of the share capital of the JV Company with an amount of RMB330 million.
Subject to the PRC regulatory approvals, the JV Company, which represents the latest development in Sunwah International's global expansion strategy, is expected to operate as a full service financial firm with a wide range of offerings to fulfill the various investment and wealth management needs of clients in the Greater China region. Subject to the final approvals of the China Securities Regulatory Commission ("CSRC"), the JV Company is expected to be a fully-licensed securities company principally engaged in the provision of regulated securities brokerage, securities underwriting and sponsorship services, proprietary trading, securities and asset management services in the PRC.
The JV Contract was signed on 1 December 2016 (after trading hours Hong Kong time) between Kingsway Financial and four joint venture partners which will respectively subscribe for share capital of the JV Company in the following proportion: (i) Hanhua Financial Holding Co., Ltd., which will subscribe 40% of the share capital; (ii) Chongqing Jiangbeizhui Central Business District Investment Group Co., Ltd., which will subscribe 25% of the share capital; (iii) Kingsway Financial which will subscribe 22% of the share capital; (iv) Chongqing Huiwei Investment Co., Ltd., which will subscribe 10% of the share capital and (v) Prive Financial Limited, which will subscribe 3% of the share capital. The JV Company, when established, will be a limited liability company in the PRC with a registered capital of RMB1.5 billion.
"We are very excited about this announcement and the Group's international expansion prospects in general, which include recently launched operations in the Guangdong Free Trade Zone and Vietnam's Ho Chi Minh City," said Michael Choi, President and Chief Executive Officer of Sunwah International. "Our participation in this joint venture is a golden opportunity for the Group to embark on a new milestone in our business development."
The JV Contract will only become effective upon (i) each of the joint venture partners and their controlling shareholders having obtained all of the relevant legal and regulatory approvals and authorisations required for the entering into the JV Contract and the transactions contemplated thereunder, and (ii) the JV Contract having been duly signed by all JV Partners. As the transaction is deemed as a major transaction under the Hong Kong Listing Rules, the transaction is therefore subject to Sunwah Kingsway's reporting, announcement and shareholders' approval. Sunwah Kingsway will convene a special general meeting to approve the JV Contract and the transaction contemplated thereunder. The establishment of the JV Company is also subject to, among other things, the approval by the CSRC, the Ministry of Commerce of the PRC and other relevant regulatory authorities in the PRC.
About Sunwah International Limited
Sunwah International Limited (TSX: SWH) is a Hong Kong based financial services provider, focused on linking the international investment community with Asia's highest growth economic regions. The organization's primary Hong Kong based subsidiary, Sunwah Kingsway Capital Holdings Limited, is listed on the Stock Exchange of Hong Kong under the stock code 00188. Sunwah Kingsway is licensed to provide a range of financial solutions in Hong Kong and abroad that include award-winning brokerage services and innovative corporate finance offerings.
Founded in 1990, Sunwah International represents the financial services division of Sunwah Group, one of Asia's most prominent multi-national conglomerates.
This press release contains "forward-looking statements" as defined under applicable Canadian securities laws. These statements include, but are not limited to, statements made concerning the proposed establishment of a JV subsidiary in Chongqing city, PRC, by Sunwah Kingsway through its indirect wholly owned subsidiary, Kingsway Financial, as well as statements with respect to management's beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plan" or "continue", or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors should not place undue reliance on forward-looking information. Forward-looking information is provided as of the date of this press release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances. Except as required by applicable law, management and the board of directors of the Company undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
SOURCE Sunwah International Limited
For further information: Kristen Humphrey, Sunwah International Limited, (416) 888-2323, [email protected]