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PIF Plans USD500 Million Investment in Hong Kong’s ChaoShang Group

PIF Plans USD500 Million Investment in Hong Kong’s ChaoShang Group

– Hong Kong’s ChaoShang Group Ltd. has signed a non-binding MoU with Saudi Arabia’s Public Investment Fund for a potential $500 million investment, earmarked for convertible debentures and loans.

– The investment, fully funded by the sovereign wealth fund, is set to be finalized over the next three months, aimed at bolstering ChaoShang’s working capital and supporting business expansion.

– ChaoShang Group, engaged in trading, finance, and leasing services in China and Hong Kong, may also explore investments in sectors like mining and healthcare with PIF’s backing.

Hong Kong’s ChaoShang Group Ltd., an investment holding company, announced it has entered a non-binding Memorandum of Understanding (MoU) with Saudi Arabia’s Public Investment Fund (PIF) for a potential investment totaling $500 million. This investment aims to provide the company with financing through convertible debentures and loans.

In a filing with the Hong Kong stock exchange, the company specified that the investment includes $100 million for convertible debentures and $400 million for a loan. The sovereign wealth fund will fully finance this investment, with finalization expected within the next three months.

The investment is anticipated to strengthen the company’s working capital and support the expansion of its current operations. With the backing of the fund, ChaoShang Group may also explore potential investments in sectors such as mining and healthcare.

ChaoShang Group’s core activities include trading, money lending, factoring, finance leasing, and financial services in China and Hong Kong.Saudi Arabia’s Public Investment Fund has been actively seeking investment opportunities in China as part of its global diversification strategy.

In the first quarter of 2024, the fund increased its stake in Alibaba, a major e-commerce company, by 11% to 1.61 million shares. Additionally, PIF holds stakes in two other Chinese American depositary receipts, Pinduoduo and BeiGene.

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