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On December 26, the asset restructuring, renaming and listing ceremony of China Merchants Port Group Co., Ltd. (hereinafter referred to as CM Port) was successfully held at SZSE. Board Chairman Li Jianhong and General Manager Fu Gangfeng of China Merchants Group, Tian Fu, member of the standing committee of Shenzhen Municipal Committee and Director of the Management Committee of Shenzhen Qianhai Shekou Free Trade Zone, SZSE Chairman Wu Lijun and SZSE President & CEO Wang Jianjun attended the ceremony.
Li Jianhong said that China Merchants Group (CMG) has injected high-quality assets from its global port operations into CM Port, which is one of the major initiatives to actively implement the supply-side structural reform. Through this asset restructuring, CM Port has become a platform for the management and capital operation of CMG's port business, which is conducive to agglomerating resources and improving allocation efficiency and profitability of the listed companies. Besides, it is of great significance for CM Port's future development, the integration and cooperation between regional ports, and China's port industry to become stronger, bigger and better.
Tian Fu expressed that with the goal to be a "world leading comprehensive port service provider", CM Port, which is rooted in Shekou, Shenzhen, vigorously promotes the construction of a comprehensive port ecosystem of "big ports + big logistics comprehensive service systems" and actively deploys the port network globally. It has become an important participant and promoter of the "Belt and Road" initiative. The successfully completed asset restructuring has opened a new chapter for CM Port's development. CM Port will make new contributions to Shenzhen's urban paradigm of building a socialist pilot model zone with Chinese characteristics and China's efforts to become a socialist modernized country.
Wang Jianjun said that CM Port's restructuring is CMG's another major industrial strategic layout following China Merchants Shekou and China Merchants Expressway. It is also a major achievement in implementing the overall deployment of SOE (state-owned enterprise) reform, gathering resources to make the main businesses stronger and better, and improving the level of asset securitization. Besides, it is an important manifestation of the capital market to promote SOEs to deepen supply-side structural reforms. SZSE will earnestly implement the spirit of the important speeches delivered by General Secretary Xi Jinping at the celebration gathering of the 40th anniversary of reform and opening up and the Central Economic Work Conference. We will improve the ability and level to serve the high-quality development of the economy, bring into play the multi-tiered capital market characteristics and the advantages of innovation capital formation, intensify industrial integration and M&A support and effectively serve national strategies such as reforms of state-owned assets and SOEs and the construction of the Guangdong-Hong Kong-Macao Great Bay Area.
CMG is a leading state-owned conglomerate under the direct supervision of State-owned Assets Supervision and Administration Commission of the State Council, with the largest total asset ranking among central enterprises. It mainly focuses on three core industries of comprehensive transportation, featured finance, and comprehensive development of cities and industrial parks. These three core industries are being transformed into three major business platforms of industrial management, financial service, as well as investment and capital operation. CM Port's overall listing has realized the optimization and integration of CMG's port business assets. It is another important achievement of the strategic cooperation between CMG and SZSE following the completion of China Merchants Shekou's overall listing in 2015 and China Merchants Expressway's in 2017. Besides, it is a model of cooperation between the two sides to promote reforms of state-owned assets and SOEs, support listed companies to focus on their main businesses and promote state-owned capital to become better and stronger. This asset restructuring has the characteristics of a large volume of M&A subjects and an innovative restructuring plan and structure, involving a restructuring transaction amount of CNY24.65 billion, the largest of its kind done the SZSE market in 2018. In recent years, SZSE's state-owned listed companies have comprehensively promoted SOE reforms and integrated resources through various methods such as debt-to-equity swap pilot, asset securitization and specialized restructuring with the help of the capital market platform. The goal is to achieve industrial layout adjustment, transformation and upgrading, continue to deepen supply-side structural reforms and inject new momentum into the high-quality development of the economy.
