Over 600 million shares of China Insurance will be auctioned, yet no one sign up even with 10% off in starting price
Recently, Alibaba’s auction website showed that the 633 million shares of China Insurance held by Zhongrong Xinda Group will be auctioned, with 1.69 yuan per share and a total valuation of more than 1 billion yuan. The starting price is 962 million yuan, accounting for 90% of the estimated price. The auction will be held from 10:00 on July 2 to 10:00 on July 3. Although the starting price is 10% off, very few people responded. At present, 13 people have set reminders for this auction and 781 checked this information, but no one has signed up for bidding. It is worth mentioning that in January 2017, this equity was pledged by Zhongrong Xinda to AVIC Trust and has now been frozen by the court.
This is not the first time that China Insurance's equity got auctioned. From September 26 to 27, 2019, Zhongrong Xinda held an auction for its 1.15% equity in China Insurance, which was 169 million shares. At that time, the assessed price was 285 million yuan, but the starting price was 200 million yuan, discounted by nearly 30%. It was finally suspended because "the existing outsider filed an objection to the auction subject of this case." In 2016, Zhongrong Xinda bought stakes of China Insurance, holding 7.79% of the shares, and became the company's second largest shareholder. However, in April 2020, Zhongrong Xinda had a debt crisis - its own funds could not provide strong support for debt repayment, and it got involved in a number of lawsuits and equity freezes.
source: Zhongke Caijing
translation: InsurView
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