Beijing State-owned Assets Management is a comprehensive system responsible for managing the city's state-owned assets. It's a key player in Beijing's economic development.
The system oversees a vast portfolio of assets, including real estate, financial institutions, and industrial enterprises. This includes the management of state-owned enterprises, such as China National Petroleum Corporation and China State Construction Engineering Corporation.
Beijing State-owned Assets Management operates under the guidance of the Beijing Municipal Government, ensuring that state-owned assets are utilized for the benefit of the city and its citizens.
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Investments and Partnerships
BSAM has made significant investments in various companies, including acquiring an 85.01% stake in Credit Suisse Securities (China) in June 2024 for $215.4 million.
The stakes were purchased from UBS and Founder Securities, with UBS keeping a 14.99% stake in the company.
BSAM also has partnerships with several companies, including BAIC Motor, China Securities (Huaxia Securities) (29.82%), and Xiezhong International (indirectly).
BSAM's partnerships are diverse, covering sovereign wealth funds, companies based in Beijing, companies owned by provincial governments of China, financial services companies established in 2001, and investment companies of China.
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Here are some of BSAM's notable partnerships:
- BAIC Motor
- China Securities (Huaxia Securities) (29.82%)
- Xiezhong International (indirectly)
BSAM's partnerships with UBS and Founder Securities have been significant, with the former selling a 36.01% stake in a joint venture to BSAM for $91.4 million, and the latter offloading its entire holding of 49% in the joint venture to BSAM for 885 million yuan ($122 million).
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Regulatory Framework
The regulatory framework for Beijing State-owned Assets Management is overseen by the State-owned Assets Supervision and Administration Commission (SASAC) of the State Council.
SASAC is responsible for formulating and implementing policies on state-owned assets management.
State-owned assets management in Beijing is guided by the "Regulations on the Administration of State-owned Assets" issued by the State Council.
The regulations require state-owned enterprises to operate in a market-oriented manner and to achieve commercial returns.
SASAC has established a set of guidelines for state-owned assets management, including the "Guidelines for the Management of State-owned Assets" and the "Code of Conduct for State-owned Assets Managers".
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These guidelines aim to ensure transparency, accountability, and efficiency in state-owned assets management.
State-owned enterprises in Beijing are also required to disclose their financial information and operational data in accordance with the "Regulations on the Disclosure of State-owned Assets Information".
This transparency requirement helps to promote public trust and confidence in state-owned enterprises.
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Financial Transactions
Beijing State-Owned Assets Management Co., Ltd. (BSAM) recently made its debut in the international debt capital markets with a USD bond offering.
The offering consisted of US$ 1 billion dual tranche bonds, closing on Tuesday 26 May.
BSAM's wholly-owned subsidiary in Hong Kong issued the bonds, which had the benefit of a keepwell and liquidity support deed, and a deed of equity interest purchase undertaking provided by BSAM.
The bonds were offered in reliance on Regulation S under the US Securities Act.
BSAM is the investment and financing platform of the Beijing Municipal Government and an integrated large-scaled investment holding company.
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The A3/A-/A rated bonds consisted of series A US$ 300 million 3.000% notes due in 2020, and series B US$ 700 million 4.125% notes due in 2025.
The proceeds of the offering will be used for refinancing certain existing indebtedness and for BSAM's working capital and general corporate purposes.
DLA Piper advised BSAM on this offering, with Melody He-Chen, partner at DLA Piper, leading the team.
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Company Overview
Beijing State-Owned Assets Management Co., Ltd. was established in 1992 as the Beijing State-Owned Assets Operating Company, a subsidiary of the Municipal State-Owned Assets Bureau.
It was restructured in April 2001, following the modern enterprise system, alongside the original Beijing Overseas Investment Management Center, marking its transformation into a state-owned company specializing in capital operations.
The company's primary function includes the management and operation of state-owned assets, ensuring their value preservation and appreciation in circulation.
With a domestic AAA credit rating and an international A credit rating, it has evolved into a highly competitive billion-level state-owned investment holding group.
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Beijing State-Owned Assets Management Co., Ltd. has four major industrial sectors: financial service, environmental protection and park operations, information services and digital industry, and culture and sports.
The company prioritizes the development of Beijing's "Four Centers" and the synergistic "Five Initiatives" as central to its operational and investment strategies.
It has accelerated the development of information services and the digital industry, facilitating the digital transformation of governance, industry, urban development, and everyday life.
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