Jiangxi State-owned Capital Operation Holding Group (Jiangxi State Holding) is to transfer 51 percent of its equity of Xinyu Iron and Steel Group to China Baowu free of charge. After the equity transfer is completed, China Baowu will indirectly control 44.8 percent of the shares of the company through Xinyu Iron and Steel Group, becoming the controlling shareholder. The amount of the free transfer is 4.3 billion yuan (US$650 million).
China Baowu is the world’s largest steel company, with crude steel output of 115 million tons in 2020. Xinyu is the largest state-owned iron and steel enterprise in Jiangxi Province. Its business covers steel smelting and processing, logistics, and investment.
