CSSC Finance definition
Examples of CSSC Finance in a sentence
The principal business of CSSC Finance includes deposit-taking, loans handling, acceptance and discounting of bills, inter-bank borrowing businesses and provision of other financial services.
As the 2020-2022 Framework Agreement (as supplemented by the Supplemental Agreement) governing the continuing connected transactions between the Group and the CSSC Group for the period from 1 January 2020 to 31 December 2022 will be completed on 31 December 2022, the Company and CSSC Finance have entered into the 2023 Financial Services Framework Agreement to continue and govern the financial services between the Group and CSSC Finance for the period from 1 January 2023 to 31 December 2023.
To continue the provision of financial services by CSSC Finance to the Group, on 27 October 2023, the Company and CSSC Finance entered into the 2024 Financial Services Framework Agreement to continue and to govern the financial services incurred between the Group and the CSSC Finance for the period from 1 January 2024 to 31 December 2024.
Therefore, the transactions between the Group and CSSC Finance constitute connected transactions for the Company.
The provision of the loans, other and financial and credit services by CSSC Finance to the Group pursuant to 2023 Financial Services Framework Agreement constitutes financial assistance received by the Group from a connected person.
As at the date of this announcement, CSSC is an indirect controlling shareholder of the Company and CSSC Finance is a wholly-owned subsidiary of the CSSC Group and therefore CSSC Finance is a connected person of the Company.
In respect of (d) above, the Group’s handling fee rates for foreign exchange business such as forward settlement and sale of foreign exchange with CSSC Finance should not be less favourable than those charged by Independent Third Parties.
The Group negotiates and enters into contracts such as forward settlement and sale of foreign exchange with CSSC Finance, agreeing on the currency, amount and exchange rate of RMB against foreign exchange for future settlement and the completion deadline.
In respect of (c) above, the charges are based on the standards set by the PBOC; the Group’s financial handling charge standards for banking credit services with CSSC Finance should not be less favourable than the conditions offered by Independent Third Parties for credit services.
In respect of (b) above, the Group’s borrowings from CSSC Finance are at rates no higher than the lending rates prescribed by the PBOC, which should be no less favourable than the terms offered by Independent Third Party lenders.