Author: Zheng Baosheng
2020-08-08 00:08Last update date: 2020-08-08 00:08
The U.S. Department of the Treasury announced sanctions on 11 Chinese and Hong Kong officials, alleging that they all undermine Hong Kong’s autonomy and restrict the freedom of speech and assembly of Hong Kong citizens.
Sanctions include prohibiting Americans from conducting any transactions in property, rights and interests with sanctioned persons, or providing or accepting any transactions in money, goods and services to sanctioned persons.
When Chief Executive Carrie Lam Cheng Yuet-ngor was asked how to respond in July, he said that the government assessed that it could be dealt with, and even pointed out that if the other party resorted to "nuclear means," it would hurt both sides. However, this time for the Secretary of Justice Zheng Ruohua, who is one of the sanctions list, it may be the first to bear the brunt.
Zheng Ruohua Pan Letao holds 63.48% of the shares
The US sanctions this time include assets in which the sanctioned persons directly or indirectly hold 50% or more of the equity. With reference to information from the Hong Kong Stock Exchange (0388), Zheng Ruohua and her husband Pan Letao hold 63.48% of Anle Engineering (1977). It is believed that Anle Engineering has qualified as a sanctioned company.
According to information from the Hong Kong Stock Exchange, Zheng Ruohua, Pan Letao and his wife hold 63.48% of the listed company Anle Engineering. (Profile picture)
Acquired New York Lift Service Company for $278 million at the end of March
Looking at the annual report of Anle Engineering, the company completed the acquisition of 51% of the shares of Transel Elevator & Electric Inc. ("TEI"), a New York City elevator company, on March 31 this year, involving an investment of approximately 278 million yuan.
Since Anle Engineering is the controlling shareholder of TEI, under the sanctions, TEI may not be able to accept any US business.
TEI has been operating in New York City since 1989. Its main business is to provide modernization, installation, repair and maintenance services for elevators and escalators for residential and commercial properties in the New York metropolitan area. Anle Engineering's annual report shows that this acquisition will be the first step to successfully enter the US market and even to the world.
Ironically, the annual report of Anle Engineering stated that the board of directors has established a risk management committee to review and approve the relevant information of the counterparty and assess the sanction risks before deciding on the transaction. However, this time it is possible that it may become a sanction target.
The United States announced sanctions on 11 Chinese and Hong Kong officials including Carrie Lam, Zheng Ruohua, Luo Huining and others
Hong Kong National Security Law | What are the consequences of 11 Chinese and Hong Kong officials being sanctioned by the US? Prohibition of money and services
Hong Kong version of the National Security Law Zheng Ruohua Anle Project