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PIF to invest $500 million in Hong Kong’s ChaoShang Group

The Public Investment Fund (PIF)of Saudi Arabia and Hong Kong’s ChaoShang Group Ltd. have inked a non-binding Memorandum of Understanding on a possible $500 million investment intended for convertible bonds and loans.

The investment, which will be completed over the course of the next three months and is entirely financed by the sovereign wealth fund, is intended to assist business expansion and strengthen ChaoShang’s working capital.

ChaoShang Group, which offers leasing, financing, and trading services in China and Hong Kong, may look into making investments in industries including mining and healthcare.

The Public Investment Fund (PIF) of Saudi Arabia and Hong Kong’s ChaoShang Group Ltd. have signed a non-binding Memorandum of Understanding (MoU) on a possible $500 million investment. The purpose of this investment is to finance the business with loans and convertible debentures.

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The company disclosed that the investment consists of $400 million for a loan and $100 million for convertible debentures in a filing with the Hong Kong stock exchange. This investment will be fully financed by the sovereign wealth fund, and completion is anticipated in the next three months.

It is projected that the investment will bolster the business’s operating capital and facilitate the growth of its ongoing activities. ChaoShang Group may investigate possible investments in industries like mining and healthcare with the support of the fund.

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Trading, money lending, factoring, finance leasing, and financial services in China and Hong Kong are among the main operations of ChaoShang Group. As part of its global diversification plan, the Public Investment Fund of Saudi Arabia has been actively pursuing investment opportunities in China.

The fund raised its holding in Alibaba, a significant e-commerce business, by 11% to 1.61 million shares in the first quarter of 2024. PIF also has shares in Pinduoduo and BeiGene, two additional Chinese American depositary receipts.

About PIF

PIF is poised to become the world’s largest sovereign wealth fund by creating a world-class domestic and international investment portfolio.

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