Approval to hold a stake in a financial sector company of more than 15%
Financial Sector (Shareholdings) Act 1998
SINCE
- HKSCC Nominees Limited, the government of the People's Republic of China (the Chinese Government), China Merchants Group Limited and the person(s) named in the attached Schedule (the applicants) have applied to the Treasurer under section 13 of the Financial Sector (Shareholdings) Act 1998 (the Act), for approval to hold a stake of more than 15% in China Merchants Bank Co., Ltd. ABN 96 609 857 383 (the Company), a financial sector company under the Act; and
B. I am satisfied that it is in the national interest to approve the applicants holding a stake in the Company of more than 15%,
I, Louis Serret, a delegate of the Treasurer, under subsection 14(1) of the Act, APPROVE the applicants holding a stake in the Company of the respective percentages set out in the attached Schedule.
This Approval commences on the date it is signed and remains in force indefinitely. Dated: 16 June 2017
[Signed]
Louis Serret
Acting Executive General Manager Specialised Institutions Division
Interpretation Document ID: 226859
In this Notice:
financial sector company has the meaning given in section 3 of the Act.
stake in relation to a company, has the meaning given in clause 10 of Schedule 1 to the Act.
unacceptable shareholding situation has the meaning given in section 10 of the Act.
Note 1
Under paragraph 16(2)(a) of the Act, the Treasurer may, by written notice given to a person who
holds an Approval under section 14, impose one or more conditions or further conditions to which the Approval is subject. Under paragraph 16(2)(b) of the Act, the Treasurer may revoke or vary any condition imposed under paragraph 16(2)(a) of the Act or specified in the Notice of Approval. The Treasurer’s power under subsection 16(2) of the Act may be exercised on the Treasurer’s own initiative or on application made to the Treasurer in accordance with the requirements of subsection 16(4) of the Act, by the person who holds the Approval (see subsection 16(3) of the Act).
Note 2
A person who holds an Approval under section 14 may apply to the Treasurer under section 17(1) of
the Act, to vary the percentage specified in the Approval.
Note 3
Under subsection 17(6) of the Act, the Treasurer may, on the Treasurer’s own initiative, by written
notice given to a person who holds an Approval under section 14, vary the percentage specified in the Approval if the Treasurer is satisfied that it is in the national interest to do so.
Note 4
The circumstances in which the Treasurer may revoke a person’s Approval under section 14 are set
out in subsection 18(1) of the Act.
Note 5
Section 19 of the Act provides for flow-on approvals. If an Approval has been granted for the
holding of a stake in a financial sector company and the financial sector company is a holding company for an authorised deposit-taking institution or an authorised insurance company, then an approval is taken to exist for the holding of a stake of equal value in each financial sector company that is a 100% subsidiary of the holding company.
Note 6
Under section 14 of the Act, the Treasurer must give written notice of this Approval to the applicant
and financial sector company concerned, and must publish a copy of this Notice in the Gazette.
Note 7
Under section 11 of the Act, a person or 2 or more persons under an arrangement are guilty of an
offence if the person(s) acquires shares in a company and the acquisition has the result, in relation to a financial sector company, that:
(i) an unacceptable shareholding situation comes into existence; or
(ii) if an unacceptable shareholding situation already exists in relation to the company and in relation to a person – there is an increase in the stake held by the person in the company;
and the person(s) was reckless as to whether the acquisition would have that result. A maximum penalty of 400 penalty units applies or by virtue of subsection 4B(3) of the Crimes Act 1914, in the case of a body corporate, a penalty not exceeding 2,000 penalty units. By virtue of section 39 of the Act, an offence against section 11 is an indictable offence.
Schedule - the person(s) who applied for approval
China Merchants Steam Navigation Company Ltd. China Ocean Shipping (Group) Company
Shenzhen Yan Qing Investment and Development Company Ltd. China Merchants Finance Investment Holdings Co. Ltd.
Shenzhen Chu Yuan Investment and Development Company Ltd. COSCO Shipping (Guangzhou) Co., Ltd.
China Communications Construction Company Limited SAIC Motor Corporation Limited
Hebei Port Group Co.,Ltd
Shandong State-Owned Assets Investment Holdings Co.,Ltd CCCC Guangzhou Dredging Co., Ltd.
Guangzhou Haining Maritime Service Co. Shanghai International Port (Group) Co., Ltd COSCO Shipping (Shanghai) Company
China National Offshore Oil Corporation Investment Co., Ltd. Shanghai Jiushi (Group) Co., Ltd
Zhejiang Zheneng Electric Power Co., Ltd China National Technical Imp. & Exp. Corp. Jilin Transportation Investment Group Co., Ltd China National Electronics Imp. & Exp. Corp. CCCC Shanghai Dredging Co., Ltd
Shanghai Airport Authority
China Reform Investment Co., Ltd.
Shenzhen Long Gang City Construction Investment Co., Ltd. CCCC Fourth Harbor Engineering Co., Ltd
Beijing Huayuan Group Co.,Ltd Guangzhou Port Group Co.,Ltd.
Guangdong Road & Bridge Construction Development Co.,Ltd China Meheco Co.,Ltd.
Zhen Hua Engineering (Shenzhen) Co., Ltd. Ministry of Transport Shanghai Salvage Company Sichuan Road & Bridge Co., Ltd.
Shenzhen SFTZ (Group) Co., Ltd.
Shanghai Transportation Investment (Group) Co., Ltd.
Beijing North Star Industrial Group Limited Liabilities Company Wuxi Guolian Development (Group) Company Limited
Sichuan Expressway Construction & Development Corporation CCCC Third Harbor Consultants Co., Ltd
Zhejiang State-owned Assets Management Co., Ltd. Shanghai Nong Gong Shang Supermarket Co., Ltd.
Shanghai Medicines & Health Products Import & Export Co.,Ltd. State Development & Investment Corporation
China General Technology (Group) Holding, Ltd. Chongqing City Construction Investment Corporation Anshan Iron and Steel Group Corporation
China United Network Communications Corporation Limited Zhangzhou Nine Longjiang Construction Co.,Ltd
Shanghai Rongtian Investment Consulting Company Limited
Schedule - the financial sector company and respective stake approved
Approval is given under subsection 14(1) of the Act for:
HKSCC Nominees Limited to hold a stake in the Company of 18 per cent; The Chinese Government to hold a stake in the Company of 49 per cent; and
China Merchants Group Limited and each of the persons listed in schedule 1, by their associate relationship with the Chinese Government, to hold a stake in the Company of 49 per cent.