Yangzijiang Financial wavers on trading debut

Singapore one-dollar bill, showing Chinese junk boatsSingapore one-dollar bill, showing Chinese junk boats

Yangzijiang Financial Holdings (YZJFH) wavered on its trading debut, ending the day at S$0.62 after opening around S$0.685.

The shares touched an intraday low of around S$0.575.

Yangzijiang Shipbuilding (Holdings) spun off YZJFH, which was its investment management business. YZJFH shares were distributed as a dividend in specie to existing shareholders of Yangzijiang Shipbuilding on a 1:1 basis.

While the shipbuilder had announced that YZJFH would be added to the Straits Times Index (STI), it was unclear if the shares would remain there after the index’s review in June.

YZJFH is expected to shift its debt investment business to focus on fund investments for longer investment horizons, such as private debt and mezzanine funds under the investment management business in China, the company has previously said.

“Backed by a strong track record in debt investments and steady returns and leveraging on its extensive network, the group will further diversify into fund and wealth management business and seek geographical diversification out of China with an added focus on United States, Europe and Southeast
Asia,” Ren Yuanlin, executive chairman of YZJFH, said in a statement filed to SGX.

In addition to the listing, YZJFH announced on Thursday it has completed the acquisition of all of GEM Asset Management for S$3.3 million. GEM is a fund management company licensed in Singapore.