“Ｖｉｏｌｅｔ Ｇｏｌｄ Ｐｌｕｔｏｃｒａｔ”Ｊｏｉｎｅｄ ｉｎ ＢＯＥ’ｓ Ｓｈａｒｅ Ｐｌａｃｅｍｅｎｔ

Ｋｅ　Ｘｉｐｉｎｇ　

The countrys largest LCD panel maker BOE Technology successfully completed a 12-billion-yuan share placement, realizing the directional add-issuance of 5 billion stocks. Ke Xiping, as the only individual investor, spent 1.68 billion yuan (USD 245.83 million) subscribing for 700 million stocks. According to BOE Technology, the shares were sold at 2.4 yuan (USD 35 cents) each. On June 10, BOEs share price surged by 28 percent, creating a huge return on investment for the companys new investors.

Ke Xiping, 48, was born in Anxi, Fujian. He is the Chairman of Xiamen Hengxing Industrial Co., which was founded in the 1990s. The companys businesses cover mining, construction material and business property. In 2008, Zijin Mining was listed in the A share market and after that Kes personal assets increased to 7.4 billion yuan (USD 1.08 billion). People called him the “Zijin Plutocrat” which means “Violet Gold Plutocrat”.

The capital of Kes subscription to BOEs new stocks is probably from cashing out a part of shareholdings of Zijin Miming. In May 2009, Ke Xiping declared that he reduced 747.6 million stocks of Zijin Ming through large transaction platform and the second-tier market. The value was estimated at over 700 million yuan (USD 102.43 million)

It is said that Ke Xiping always wants to put investments into the high technology field and the “Buffett in China”. Some analysts said that the reason why he became the “Violet Gold Plutocrat” is the imperfect stock market system in China apart from his long-term investment strategy. The issuance price of Zijin Minings stocks was 71.3 yuan (USD 10.4) while the price of Kes subscription price was only one yuan (USD 15 cents). But the price of Kes stocks is the same with the one of public stocks in the circulation. The price of BOEs additional shares is also much lower than the normal issuance price. But the public investors have no opportunity to acquire the stocks with such a low price.