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JunHe Assisted CCT in its Acquisition of New Times Securities


On December 14, 2021, China Chengtong Holdings Group Co., Ltd. (CCT) signed an Agreement on Equity Transfer with the original shareholders of New Times Securities Co., Ltd. (New Times Securities), acquiring 98.24% of New Times Securities’ equity for RMB 13.135 billion. On March 25, 2022, the China Securities Regulatory Commission (CSRC) approved CCT as the main shareholder of New Times Securities and the actual controller of Rongtong Fund Management Co., Ltd. (Rongtong Fund) and made a public announcement formalising the approval of the Change of the Main Shareholder of New Times Securities Co., Ltd. and the change of the Actual Controller by Rongtong Fund Management Co., Ltd. The CSRC had no objection to CCT’s acceptance of the transfer of the 2.859 billion shares (accounting for 98.24% of the total shares) from New Times Securities. New Times Securities has changed its name to Chengtong Securities Co., Ltd. (Chengtong Securities),  amended its articles of association and completed the filing procedure with the competent administration for industry and commerce.

CCT is the first state-owned asset management company of which the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) has contributed capital on behalf of the State Council. Since 2016, with the approval of the State Council and entrusted by SASAC, CCT as the main sponsor has established the China State-owned Enterprise Structural Adjustment Fund and the China State-owned Enterprise Mixed Ownership Reform Fund, aiming to improve the layout and the structural optimization of state-owned capital. CCT currently operates equities in listed companies with a total market value of over RMB 70 billion and is a major shareholder of multiple tier one central enterprises such as PipeChina and CGDG. 

Chengtong Securities is a national securities trader. It is headquartered in Beijing and has 63 business offices distributed across the country, forming a nationwide customer service and operation network. Rongtong Fund, in which 60% of the equity interest is held by Chengtong Securities, engages in the business of publicly offered funds, covering active equity funds, passive investment funds, bond funds, monetary funds, hybrid funds, and QDII funds.

JunHe acted as the legal advisor of CCT in this project and assisted in the argumentation of the transaction structure and issues regarding anti-monopoly. JunHe’s team conducted due diligence on New Times Securities, issued the legal due diligence report, amended the transaction documents and participated in the negotiation. They assisted in the regulatory approval process, amended the internal resolution documents and the articles of association of the company, and assisted in the recomposition of the board of directors, the board of supervisors and management. JunHe’s team completed the filing procedures with the competent industry and commerce administration bodies, and assisted CCT in its approval for the acquisition of New Times Securities. With its rigorous and efficient legal services, and its dedicated professional attitude, JunHe won the affirmation and trust of CCT and the other intermediaries. 

This Project was led by Ms. LIAN, Jing and Mr. YU, Yongqiang (YY). The main contractor partner was Ms. SHI, Yun.

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