ZHAOJIN MINING (1818.HK) GAINED APPROVAL FOR LISTING OF H-SHARES IN FULL CIRCULATION BY THE HONG KONG STOCK EXCHANGE
Latest Update:
6 th August, 2020

In 2020, the sino-US trade war will intensify, international relations will be complex, public health events will drag down the economy, and various crises will lead to a rise in risk aversion. Gold, as a "risk aversion hard asset", will be sought after by investors in this particular period. Zhaojin Mining Co., LTD. (1818.HK) received approval from the Federation of Hong Kong Exchanges and Exchange on August 3 to list its H shares in full circulation, involving a total of 1.56 billion domestic shares.

At present, the Company has completed the withdrawal registration procedures of relevant domestic shares in China Clearing Corporation, and the relevant shares have been deposited with China Clearing Hong Kong Company. The converted shares are expected to be sent to Hong Kong Clearing On August 7, 2020, and will be listed on the Hong Kong Stock Exchange from 9:00 am on August 10, 2020.

All the seven domestic shareholders of the company participated in the "full circulation" of H shares. Shandong Zhaojin Group and Zhaoyuan State Capital, the controlling shareholders, only participated in the full circulation of some of their domestic shares (nearly 560.2 million shares). About 1.0002 billion domestic shares held by shareholders such as Shanghai Fosun Investment Co., LTD., Shanghai Yuyuan Mall, Lao Miao Gold And Zhaojin Mining Co., LTD. 's first employee Equity subscription plan will all be converted into H shares for listing and circulation.

The smooth implementation of "full circulation" of H shares has benefited the company in terms of ownership structure and share liquidity. It can not only help optimize the company's equity structure, but also effectively drive the attention of zhaojin Mining market, significantly increase the market value of H shares, increase the weight of the company in the international market index, and bring incremental allocation of funds. At the same time, the current market valuation of Zhaojin is low, which is affected to some extent by the lack of stock liquidity. The "full circulation" of H shares can effectively solve the undervaluation caused by the lack of stock liquidity, which is very in line with the long-term development of the company and the interests of the overall shareholders.

Zhaojin Mining has always attracted the attention of the capital market. Since it was approved by China Securities Regulatory Commission to implement the "full circulation" of H shares in June, it has attracted the attention and favor of many institutional investors, especially international investors. JP Morgan increased its holdings of 9.7 million shares and 7.22 million shares of Zhaojin Mining on July 27 and 28 respectively. It has more than 75 million shares, which not only reflects the confidence of high-quality investors in Zhaojin Mining, but also reflects the high value of zhaojin Mining in the capital market.

The international situation is complicated and difficult to reverse in the short term. The prospect of the gold industry is still pretty. Zhaojin Mining Company, as a resource enterprise focusing on the development of gold mining, has high quality and rich gold resources. The company will actively pay attention to the global situation and gold price trend, make strategic response, and further enhance the core competitiveness in the capital market, maintain a high level of profitability and achieve high-quality sustainable development.

Latest Update:
6 th August, 2020