Plans to Acquire 8.7% Stake in Bay Area Development - Is Shandong High Speed Returning to the Greater Bay Area Expressway Market?

How does AI and past investment experience influence this Greater Bay Area development?

Our reporter: Kong Zesi Editor: Zhang Yiming

Recently, a reporter from “Daily Economic News” checked the Shandong Province Investment Project Online Approval and Supervision Platform and found that Shandong Expressway (SH600350, stock price 10.38 yuan, market value 50.183 billion yuan) is planning to acquire an 8.7% stake in Bay Area Development (HK00737), held by Shen高速 (SH600548). However, as of March 19, 2026, the website no longer displays related information.

Image source: Screenshot of Shandong Province Investment Project Online Approval and Supervision Platform

On March 19, the reporter verified with multiple related companies, but most either did not know the details or did not respond. Another industry insider told the reporter that this acquisition is still in the planning stage, and the information appearing on the website is likely just a project initiation, with subsequent steps still to be observed.

Bay Area Development manages multiple highways in the Greater Bay Area

Data shows that Shandong Expressway mainly engages in investment and operation of transportation infrastructure, as well as equity investments in related upstream and downstream industries of the highway industry chain. By 2025, the total length of road and bridge assets managed by the company is approximately 2,913 kilometers.

In its 2025 semi-annual report, Shandong Expressway stated that the company actively explores market-oriented highway investment and construction projects, mainly acquiring operational projects that are already open to traffic outside Shandong Province, and building regional development platforms outside the province.

Bay Area Development is a subsidiary controlled by Shen高速, which operates the Shenzhen section of the Guangshen沿江高速公路 (Guangshen Along-Jiang Expressway), holding a 51% stake. Its other main assets include 45% of Guangshen Pearl Highway Co., Ltd. (mainly involved in the investment, construction, and management of the Guangzhou-Shenzhen section of the Beijing-Hong Kong-Macau Expressway), 50% of Guangdong Guangzhu West Line Expressway Co., Ltd. (mainly involved in the investment, construction, and management of the Guangzhou-Zhuhai West Line Expressway), and 15% of Guangzhou Zhen Tong Industrial Development Co., Ltd. (currently developing the Park Shangcheng project in Xintang Town, Zengcheng District, Guangzhou).

On March 18, 2026, Bay Area Development released its annual performance report, showing that in 2025, revenue was 786 million yuan; net profit attributable to the parent company was 468 million yuan, a year-on-year increase of 1.44%.

Bay Area Development stated that the overall operation of its three highways remains stable. The impact of traffic diversion on Guangshen Highway and Guangzhu West Line Expressway has lessened since the second half of 2025; the Guangshen沿江高速公路 (Shenzhen section) benefited from the opening of its Phase II project, the opening of the Shenzhen-Zhongshan Channel, the end of freight toll adjustments starting January 2025, and the opening of Mawan Tunnel, leading to a noticeable increase in traffic flow and toll revenue year-on-year. The company is confident about the future development of Guangshen Highway, Guangzhu West Line Expressway, and Guangshen沿江高速公路 (Shenzhen section).

To understand Shandong Expressway’s acquisition intentions regarding Bay Area Development, “Daily Economic News” reporters recently contacted Shandong Expressway, Shen高速, and Bay Area Development by phone or email, but as of press time, no effective response has been received.

Shandong Expressway previously held shares in Yue Expressway A

In fact, Shandong Expressway previously held shares in Yue Expressway A (SZ000429).

In July 2020, its wholly owned subsidiary, Shandong Expressway Investment Development Co., Ltd. (hereinafter referred to as Shandong Investment), transferred 9.68% of Yue Expressway A through an agreement, acquiring it for 1.348 billion yuan, which brought good returns to Shandong Expressway.

From 2020 to the third quarter of 2025, the long-term equity investment income from its holdings in Yue Expressway A, accounted for by the equity method, was 68.7095 million yuan, 165 million yuan, 123 million yuan, 164 million yuan, 151 million yuan, and 136 million yuan respectively, totaling approximately 808 million yuan.

On November 28, 2025, Shandong Expressway announced that Shandong Investment planned to transfer 9.68% of Yue Expressway A for 2.435 billion yuan through a non-public agreement, with Shandong Tonghui Capital Investment Group (hereinafter referred to as Tonghui Group) as the transferee. Since Tonghui Group is a controlling subsidiary of the controlling shareholder of Shandong Expressway, this transaction constitutes a related-party transaction. In December of that year, the shares involved in the transaction had already been transferred.

Daily Economic News