October 26 -- Property developer Xinhu Zhongbao (600208.SH) said it may increase its stake in affiliate, Xinhu Holding, from 40 percent to 48 percent in order to up its returns from the affiliate’s development, reports yicai.com, citing a company filing.

The other 60 percent stake in Xinhu Holding is currently held by Xinhu Group, the parent of the listed company.

After the completion of the transaction, the stake of Xinhu Group in Xinhu Holding will be diluted to 52 percent.

Through the end of 2010, Xinhu Holding had net assets of 3.98 billion yuan. It recorded revenue of 1.55 billion yuan and net profit of 340 million yuan in 2010.

Among other equity investments, Xinhu Holding currently holds a 95 percent stake in Shanghai Xinhu Venture Capital, a 100 percent stake in Shanghai Qingyu Investment Management, a 4.57 percent stake in Sunshine Insurance Group Corporation, and a 69.22 percent stake in Xiangcai Securities.

The listed company signed an agreement with Hwabao Trust to establish a joint venture, Shanghai Xinhu Energy Development. The joint venture will have a registered capital of 100 million yuan.

Hwabao Trust is a subsidiary of Baosteel Group.
 

Source:CapitalVue