Geely's Financial Acumen | Geely's 'Fission'

In fact, since Geely’s acquisition of a 19.6% stake in London Taxi Company’s parent firm, Manganese Bronze Holdings, in 2006, Geely has carried out eight overseas acquisitions over more than a decade using its ‘buy-buy-buy’ model. Years of such aggressive acquisitions have honed Geely’s expertise in the overseas M&A market; today, it stands as the most successful Chinese enterprise in cross-border automotive acquisitions. After Geely ‘awakened’ to sophisticated financial engineering, it not only continuously strengthened its core automotive business but also became highly adept at leveraging capital—‘using small stakes to control large assets.’ Its financing approach for acquisitions exemplifies this style, especially evident in its investment in Daimler. According to Daimler’s official announcement on February 23, 2018, Geely acquired a 9.69% equity stake in Daimler through Tenaclou3 Prospect Investment Limited—a company under Geely’s ultimate control. Specifically, Geely purchased 103,619,340 shares out of Daimler’s total issued share capital of 1,069,837,447. At Daimler’s share price of €71.33 that day, the transaction value amounted to approximately RMB 6.26 billion (roughly USD 900 million). Daimler’s filing also disclosed several key details: Geely Holding Group Chairman Li Shufu executed the purchase via ‘Geely Group Co., Ltd.’—a newly established business unit under Zhejiang Geely Holding Group Co., Ltd. (hereinafter ‘Geely Group’). This entity was registered as a vehicle for new ventures and is wholly controlled by Li Shufu (91% ownership), with management oversight by Zhejiang Geely Holding Group Co., Ltd. Its portfolio includes Caocao Mobility, Terrafugia flying cars, Qianjiang Motorcycles, and Homar, later consolidated into Geely Technology Group. Clearly, Li Shufu’s direct involvement underscores the strategic significance of this move. So where did the acquisition funding come from? According to foreign media reports and industry insiders’ analysis, Geely employed a specialized financing instrument known as a ‘funded equity collar’ to secure funds and acquire Daimler shares—making Geely Daimler’s largest single shareholder. In essence, an equity collar involves pledging the acquired shares to a bank to obtain financing—an inverted form of secured lending. Geely Group enlisted Bank of America Merrill Lynch and Morgan Stanley to structure this deal; both banks reportedly earned around USD 250 million in upfront fees. This equity collar instrument has also gained traction among other aggressive acquirers, including SoftBank and HNA Group. Yet the equity collar is an extremely complex financial tool—a hybrid product combining equity derivatives and securities-backed loans. While risks remained within Geely’s manageable range initially, unprecedented events like the COVID-19 pandemic posed unforeseeable challenges. Indeed, as of Daimler’s recent share price, Geely’s paper loss has exceeded USD 500 million. Then why was Geely so determined to invest in Daimler?

Trust Companies Intensify Disposal of Public Mutual Fund Equity!

On September 16, Jinxin Fund announced a change in its equity structure: with approval from the China Securities Regulatory Commission (CSRC), Anhui Guoyuan Trust—the fund’s former second-largest shareholder—transferred its entire 31% stake to Song Siying, Yang Chao, Kong Xuebing, Liu Jiyun, and Huiju Future Investment (Shenzhen) Partnership (Limited Partnership). On August 3, Tianjin Trust listed for sale its 4.99% stake in Tianhong Fund at a floor price of RMB 1.567 billion. Following the transaction, its shareholding in Tianhong Fund would decline from 16.8% to 11.81%, downgrading it from second to third largest shareholder. Earlier, Shandong International Trust fully divested its 16.675% stake in Fullgoal Fund; Shanghai International Trust transferred its 51% stake in China International Fund Management (CIFM); Shanxi International Trust reached a roughly RMB 1-billion acquisition agreement with HSBC regarding the transfer of its 31% stake in HSBC Jin Xin Fund; Wanzhong Securities acquired 63.7% of Chang’an Fund’s equity, approved by the CSRC; and Chengdu Jiaozi Emerging Group took control of Zhonghai Fund by acquiring its 58.41% controlling stake—leaving Zhonghai Trust without control. However, not all trusts have succeeded in exiting. Huachen Trust attempted to fully divest its 40% stake in Huachen Future Fund, slashing its listing price from RMB 17.2 million to RMB 4.8 million—a reduction exceeding 72%—yet still failed to attract any bidder, resulting in a failed auction. Similarly, China Minsheng Trust twice listed its 25% stake in Baoying Fund in 2024, repeatedly extending the listing period; AVIC Trust’s 27.27% stake in Jiahe Fund—first listed in late 2022—has been relisted multiple times, yet remains unsold. Industry insiders point out that trust companies’ disposal of public mutual fund equity in 2026 follows two distinct patterns: first, wholesale exits from smaller mutual funds—shedding low-efficiency, non-core assets; second, partial disposals by major mutual funds—locking in unrealized gains and optimizing asset structures.

First Bank & Trust Reduces Stake in Gevo, Inc.

Oct 19, 2026

First Bank & Trust reduced its stake in Gevo Inc by 43.7% in Q3, selling 1.34 million shares. Analysts maintain a Hold rating with a price target of $2.55 despite insider selling.

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