Guangshen Rail (Stock Code: 00525) announced that, after market close on 29 April 2026, it executed a Financial Services Agreement with China Railway Finance Co., Ltd., a wholly-owned subsidiary of China State Railway Group (CSRG). The agreement covers deposit, loan, settlement, bill and other approved financial services for a term of three years, commencing upon approval at the upcoming annual general meeting (AGM).
Under the deal, the maximum daily balance of deposits (including interest) that the Group may place with the Finance Company is capped at RMB1.00 billion. A separate internal cap of RMB3.00 billion has been set for outstanding loans the Finance Company may extend to the Group, although such loan services are exempt from Hong Kong Listing Rules reporting requirements because they constitute unsecured financial assistance on normal commercial terms.
Pricing benchmarks reference the People’s Bank of China: • Deposit rates—no lower than rates offered by the Finance Company to other CSRG member units for comparable deposits. • Loan rates—no higher than loan-prime-rate-based terms offered by commercial banks and no higher than rates charged to other CSRG member units. Settlement services will be free of charge; fees for any future “New Services” must not exceed regulatory ceilings or the rates offered to other CSRG entities.
Risk management measures include: (1) system security certified for online banking interfaces; (2) compliance with NFRA liquidity and capital indicators—end-2025 liquidity ratio 74.25 % and capital adequacy 36.78 %; (3) provision of semi-annual and annual financial statements to the Company; and (4) ongoing credit monitoring by Guangshen Rail’s finance department. CSRG has undertaken to inject capital should the Finance Company face payment difficulties.
Continuing connected-transaction classification: GRGC holds 37.12 % of Guangshen Rail, making CSRG and the Finance Company connected persons under Chapter 14A of the Hong Kong Listing Rules. Because the deposit cap pushes the highest applicable percentage ratio above 0.1 % but below 5 %, the deposit services require announcement, reporting and annual review, but no shareholder circular or independent vote in Hong Kong. Nevertheless, Shanghai Stock Exchange rules mandate independent-shareholder approval since the agreement term exceeds one year.
Directors Jiang Hui, Zhong Ning and Li Danjiang—each holding positions in GRGC or its subsidiaries—abstained from board voting. GRGC and its associates will abstain from voting at the AGM. A circular with full details and AGM notice will be dispatched to shareholders in due course.
Management cites improved fund-utilisation efficiency, lower financing costs and flexibility in choosing service providers as primary benefits. The Board, including independent directors, concluded that the agreement is on normal commercial terms, in the ordinary course of business and in the interests of shareholders as a whole.