China Chengtong Holdings Group (CCT; ), is a Chinese

state-owned State ownership, also called public ownership or government ownership, is the ownership of an industry, asset, property, or enterprise by the national government of a country or state, or a public body representing a community, as opposed to ...

investment

holding company A holding company is a company whose primary business is holding a controlling interest in the Security (finance), securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own Share ...

. The company's purpose is to enhance the efficiency of state-owned capital operations and pursue capital appreciation. It boasts an AAA credit and debt rating. In 2021, according to S&P Global Market Intelligence and

Preqin Preqin Ltd. is a Privately held company, privately held London-based investment data company that provides Financial data vendor, financial data and insight on the alternative assets market, as well as tools to support investment in alternatives. ...

, its

fund management Asset management is a systematic approach to the governance and realization of all value for which a group or entity is responsible. It may apply both to tangible assets (physical objects such as complex process or manufacturing plants, infrastru ...

arm, Chengtong Fund Management, was ranked as the 24th largest

private equity firm A private equity firm or private equity company (often described as a financial sponsor) is an investment management company that provides financial backing and makes investments in the private equity of a Startup company, startup or of an existin ...

in the world based on total fundraising over the most recent five-year period.

Background

In 1992, CCT was formed by the merger of multiple materials and circulation enterprises directly under the now-defunct Ministry of State Materials. CCT focused on logistics. Domestic manufacturers would leave their procurement contracts with CCT units, while CCT would guarantee the funding and repayment to banks. CCT became the operator of the largest number of warehouses in China. In 2003, CCT acquired a controlling stake in a Hong Kong-listed company, China Logistic. It was subsequently renamed to China Chengtong Development Group. In 2005, CCT was identified by the SASAC as a pilot

asset management Asset management is a systematic approach to the governance and realization of all value for which a group or entity is responsible. It may apply both to tangible assets (physical objects such as complex process or manufacturing plants, infrastr ...

corporation with 20 billion yuan in assets. In 2008, the SASAC arranged for about 20 of its

state-owned enterprise A state-owned enterprise (SOE) is a business entity created or owned by a national or local government, either through an executive order or legislation. SOEs aim to generate profit for the government, prevent private sector monopolies, provide goo ...

s (SOEs) that were related to logistics to become wholly owned subsidiaries of CCT. A source noted that a high level of

bad debt In finance, bad debt, occasionally called uncollectible accounts expense, is a monetary amount owed to a creditor that is unlikely to be paid and for which the creditor is not willing to take action to collect for various reasons, often due to ...

had to be absorbed. In September 2016, CCT established the fund management company, Chengtong Fund Management. It would manage the China Structural Reform Fund, a 350 billion yuan

private equity fund A private equity fund (abbreviated as PE fund) is a collective investment scheme used for making investments in various equity (and to a lesser extent debt) securities according to one of the investment strategies associated with private equity. ...

that would restructure SOEs in struggling sectors such as coal and steel. Ten SOEs invested in the fund, including

China Mobile China Mobile is the trade name of both China Mobile Limited and its ultimate controlling shareholder, China Mobile Communications Group Co., Ltd., a Chinese State-owned enterprises of China, state-owned telecommunicationsStrait deals ''The Econ ...

CRRC CRRC Corporation Limited (known as CRRC) is a Chinese state-owned and publicly traded rolling stock manufacturer. It is the world's largest rolling stock manufacturer in terms of revenue, eclipsing its major competitors of Alstom and Siemens. ...

Sinopec China Petroleum and Chemical Corporation, or Sinopec Group, is a Chinese oil and gas enterprise based in Chaoyang District, Beijing. The SASAC administers China Petroleum and Chemical Corporation for the benefit of State Council of the ...

, and CCT itself. Companies the fund would invest in include

China Unicom China United Network Communications Group (China Unicom) is a Chinese state-owned telecommunications operator. Originally founded (on January 6 2009) as a wireless paging and GSM mobile operator, it currently provides a range of services inclu ...

and COFCO Group. In 2018, during Russian president

Vladimir Putin Vladimir Vladimirovich Putin (born 7 October 1952) is a Russian politician and former intelligence officer who has served as President of Russia since 2012, having previously served from 2000 to 2008. Putin also served as Prime Minister of Ru ...

's visit to Beijing, Russia-China Investment Fund and CCT announced agreement to establish a US$1 billion "industrial investment fund". In March 2024, CCT issued a 1 billion yuan 30-year bond with a 3.35% coupon rate, with the proceeds being used to repay existing debt. It was underwritten by Shanghai Pudong Development Bank and received oversubscription of 2.35 billion yuan from 19 investors. In July 2024, CCT and China Orient Asset Management established a special fund worth 30 billion yuan to help SOEs make better use of their fixed and land assets through investment as well as

mergers and acquisitions Mergers and acquisitions (M&A) are business transactions in which the ownership of a company, business organization, or one of their operating units is transferred to or consolidated with another entity. They may happen through direct absorpt ...

References

{{authority control 1992 in Beijing Chinese companies established in 1992 Companies based in Beijing Financial services companies established in 1992 Government-owned companies of China Investment management companies of China Private equity firms of China