Guangdong tycoon behind share listings of local firms

Guangdong tycoon behind share listings of local firms

Staff Reporter


Timber tycoon Liu Shaoxi, founder and chairman of the Guangdong-based Yihua Enterprise Group, has been a key player behind the share listings of local companies from the southern region, reports Guangzhou’s Time Weekly.

Founded in 1995, Yihua alongside its subsidiary Guangdong Yihua Timber, was the first private business in Shantou city in Guangdong to launch a listing in Shanghai on Aug. 24, 2004.

In November 2007, Yihua’s real estate subsidiary completed its share listing, and became the first property company in eastern Guangdong to be publicly traded, the paper said.

Today, a total of 27 companies from Shandou and neighboring Chaozhou are listed on the A-share market, either in Shanghai or Shenzhen, and have a combined market value of over 110 billion yuan (US$17.7 billion).

While the cluster of businesses that have formed in the region are seen as the reason behind local companies’ interests in a share listing, the paper highlighted one characteristic of these companies —they often hold stakes in each other.

A local official told the paper that companies planning to list often sought advice from Liu and his brother, as they are seen as the “godfathers of capital.”

Yihua has owned stakes in four listed companies through various investment firms it set up in recent years. These four companies were telecoms giant Huawei Technology, Guangdong Taiantang Pharmaceutical, Guangdong Jinming Machinery and Shantou Dongfeng Printing.

Through its investment in these companies, Yihua owned a 9.48% stake in Huawei, 6.75% in Jinming, and 5.45% in Dongfeng at the end of March, but has sold its stake in Tianantang, the paper said.

Yihua is also linked to four of the nine companies that have completed preliminary disclosures for their public listing, either through the investment companies or because of a personal connection with Liu.

These four companies are Guangdong Guanghua Sci-Tech, in which a company represented by Liu’s son holds an 8% stake, Guangdong Songfa Ceramics, where Liu’s son is the third-largest shareholder, ceramics company Guangdong Sitong Group and home decorator Mingdiao, where the president’s wife is Liu’s sister, the paper said.


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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (, the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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