Shenzhen Salubris Pharmaceuticals Co., Ltd. (“Salubris”), one of the leading biopharmaceutical players listed on the Shenzhen Stock Exchange (stock code: 002294) has just completed a private placement recently, which has accordingly diluted equity positions of its existing shareholders including CLSA Asset Management Limited (“CLSA QFII”).

In September 2020, CLSA QFII acquired 5% of the old shares of Salubris from its controlling shareholder through a private agreement for an approximate consideration of RMB1.78 billion with funds provided by a project company established by an affiliate of CAP V Mauritius Limited (“Carlyle”). This is a noteworthy A-share transfer transaction since it’s been the first of its kind involving purchase of no less than 5% old shares of an A-share listed company by a QFII. In that groundbreaking deal, the Han Yi team assisted CLSA QFII and Carlyle to iron out all legal and practical wrinkles to set a new precedent successfully for QFIIs to invest in the A-share market through negotiated transfers.