On November 3, Shanghai Guosheng Group Co., Ltd. (“Guosheng”) announced to issue RMB 5 billion of exchangeable bonds, which can be exchanged for a portion of Shanghai Construction Group's A shares. On November 9, Guosheng successfully raised RMB 5 billion through the said bond offering and the relevant exchangeable bonds was expected to be officially listed and quoted on Shanghai Stock Exchange 3 weeks later. In the offering, China International Capital Corporation (CICC) and Guotai JunAn Securities respectively served as the leading underwriter and co-underwriter. This transaction is the first operation by Guosheng, which treat transferred state-owned assets as the subject thereof since Guosheng was designated as a state-owned asset flow platform by Shanghai Municipal Government in 2014, and thus has attracted huge market attention. Guosheng Group is also the first state-owned asset flow platform offering exchangeable bonds to the public.

Exchangeable bond is a new financial product for China's capital market and “2014 Baosteel EB” is China's first public exchangeable bond. In this regard, Guosheng's initiative and its innovative style have impressed the market.

Grandall Shanghai Office has been retained as special counsel of the project, with Mr. Charles Guan, Ms. Cherry Pang and Mr. Diming Li being key lawyers serving the case.