① China UnionPay's 0.021% equity listing and transfer reserve price reached 36.3 million yuan, and the company's corresponding overall valuation exceeded 170 billion yuan; ② China Telecom plans to withdraw from China UnionPay, and the company is also listing to withdraw the shares of many other financial institutions.
Financial Services Association, September 27 (Reporter Zou Juntao) On the morning of September 27, the Shanghai Joint Stock Exchange website revealed that 2.089572 million shares (0.021% of the total share capital) of China UnionPay Co., Ltd. (“China UnionPay”) will be publicly listed and transferred starting today. The disclosure of this information starts and ends on September 27, 2024 to October 29, 2024.
A Financial Services Association reporter noticed that the reserve price for the above equity listing transfer is 36.3 million yuan. Based on this, it is estimated that the current overall valuation of China UnionPay has reached 172.857 billion yuan.
China UnionPay's corresponding valuation has exceeded 170 billion
According to data, China UnionPay was established in Shanghai on March 26, 2002, with joint funding from 85 institutions including China Banknote Printing and Minting Corporation, Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, and Bank of Communications.
In recent years, China UnionPay shareholders have changed many times, and the company's equity valuation has continued to rise.
In 2011/12, CITIC Trust listed and sold 23 million shares of China UnionPay, and finally transferred it to the Shanghai Financial Development Investment Fund (limited partnership) at an agreed price of RMB 0.311 billion. The transaction price of China UnionPay was about 13.5 yuan per share, and the corresponding UnionPay valuation was 39.6 billion yuan.
In September 2013, Buffett Investment Co., Ltd. listed and transferred 5 million shares of China UnionPay on the Shanghai Joint Stock Exchange, accounting for 0.17% of the total share capital. The listing price was 95 million yuan, and the transfer price was 19 yuan per share. The corresponding UnionPay valuation was 55.7 billion yuan.
In November 2017, Cangzhou Rural Credit Cooperatives Association plans to transfer all 0.102376% of China UnionPay shares (3 million shares) at a listing price of 75.03 million yuan. The corresponding UnionPay valuation is 73.3 billion yuan.
In January 2018, Beijing Donghuan Real Estate Co., Ltd., a wholly-owned subsidiary of Bank Construction International, planned to transfer 0.256% of China UnionPay shares to a third party buyer at RMB 0.195 billion, for a total of 7.5 million shares. The corresponding UnionPay valuation was 76.2 billion yuan.
A Financial Services Association reporter noticed that in the past 13 years, China UnionPay's valuation in the equity exchange market has increased from nearly 40 billion yuan to over 170 billion yuan at present, and the valuation has increased more than 3 times.
According to the listing announcement, by the end of 2023, China UnionPay had achieved operating income of 47.238 billion yuan, net profit of 14.3 billion yuan, and total assets of 333.7 billion yuan; by the end of June 2024, China UnionPay had achieved operating income of 20.225 billion yuan, net profit of 9.514 billion yuan, and total assets of 206.211 billion yuan.
China Telecom plans to “liquidate” the transfer of shares
According to the listing announcement, the share transfer party is China Telecom Group Co., Ltd. (“China Telecom” for short). It is worth mentioning that after this successful share transfer, China Telecom will no longer hold China UnionPay shares.
The announcement requires that the intended transferee shall be an enterprise corporation or other economic organization established in China in accordance with law and in force; this project shall not apply for transfer by means of entrustment, trust, or anonymous entrustment.
A Financial Services Association reporter noticed that China Telecom and its subsidiaries have recently listed and “liquidated” shares in a number of financial institutions. According to information, the reason behind the intensive transfer of shares in financial institutions is related to the “refund order” policy.
According to the Shanghai Joint Stock Exchange website, on September 13, China Telecom listed and transferred 24.6 million shares of Hankou Bank Co., Ltd. (0.51% of the total share capital), with a reserve transfer price of 130.1741 million yuan.
According to the Beijing Equity Exchange website, Tianyi E-Commerce Co., Ltd., a subsidiary of China Telecom, is listing to transfer 41.1765% of Chongqing Zhongan Microfinance Co., Ltd. (420 million shares) and 100% of the shares of Sweet Orange Insurance Agency Co., Ltd. The information disclosure dates are from July 22, 2024 to April 4, 2025.