Yantai, Shandong – Wanhua Chemical plans to set up a financial subsidiary with CNY 1bn ($149 m) registered capital, according to a statement on 12 July.
Owned by Wanhua Chemical and other group affiliates, the new subsidiary will take deposits from such affiliates and provide a series of services such as financial consulting, credit verification, payment handling, capital leases, insurance and interbank loans.
The financial company can “improve the group’s overall safety of funds and boost capital returns, as well as give better play to the group’s scale effect and its strength as a whole,” said the statement.
It “could also drive the company’s businesses and lay down solid capital foundation for the company’s future development and international expansion,” the statement added.
Exchange Rates: Xe.com 19 July 2016.