Se­cu­ri­ties bro­kers ex­pand over­seas

China Daily (USA) - - BUSINESS - By WANG YANFEI in Bei­jing and SHI JING in Shang­hai Contact the writ­ers at wangyan­fei@ chi­nadaily.com.cn.

As the cen­tral gov­ern­ment moves ahead with its fi­nan­cial re­form agenda, some of the largest Chi­nese se­cu­ri­ties bro­kers are tak­ing the lead to ex­pand their busi­ness in over­seas stock mar­kets.

Amid pre­vail­ing pro­tec­tion­ist sen­ti­ments, the Chi­nese gov­ern­ment’s sus­tained ef­forts to pro­mote open­ing up have showed no signs of abat­ing — a wel­come boost for do­mes­tic se­cu­ri­ties com­pa­nies at a time when the lo­cal A-share mar­ket re­mains largely iso­lated from global cap­i­tal.

Some of the lead­ing se­cu­ri­ties com­pa­nies that have earned hand­some prof­its in re­cent years are ex­pected to be the first to ben­e­fit from the open­ing-up poli­cies, ac­cord­ing to the guide­line re­leased by the na­tion’s top se­cu­ri­ties reg­u­la­tor ear­lier last month.

Chi­nese se­cu­ri­ties bro­kers plan­ning to ex­pand over­seas should have net as­sets of no less than 6 bil­lion yuan ($866 mil­lion), and should have op­er­ated for at least two years, ac­cord­ing to the guide­line is­sued by the China Se­cu­ri­ties Reg­u­la­tory Com­mis­sion.

Fol­low­ing some ear­lier moves by large se­cu­ri­ties com­pa­nies, such as CITIC Se­cu­ri­ties and China In­ter­na­tional Cap­i­tal Cor­po­ra­tion, Haitong In­ter­na­tional Se­cu­ri­ties, a sub­sidiary of Haitong In­ter­na­tional Se­cu­ri­ties Group Ltd, an­nounced ear­lier this week that the com­pany had launched its mar­ket-mak­ing busi­ness in the United States, be­com­ing the first Chi­nese mar­ket maker on the Nas­daq.

Lin Yong, CEO of Haitong In­ter­na­tional, said the com­pany would ini­tially fo­cus on China-con­cept stocks as its ma­jor mar­ket-mak­ing tar­get and ad­just its cov­er­age grad­u­ally, based on the mar­ket as well as the needs of clients in an ef­fort to bet­ter serve global in­vestors by link­ing up the Chi­nese and over­seas cap­i­tal mar­kets.

The com­pany said it will es­tab­lish a global plat­form for in­vest­ment bank­ing, trad­ing and ex­e­cu­tion and in­vest­ment ser­vices cen­ter­ing on New York, Lon­don, Sin­ga­pore and Hong Kong.

Jiang Qi­jia, a se­nior an­a­lyst at fi­nan­cial ser­vice provider Noah Hold­ings Ltd, said the ex­pan­sion of Chi­nese fi­nan­cial in­sti­tu­tions in over­seas mar­kets would be­come a def­i­nite trend, af­ter China took steps to in­crease over­seas par­tic­i­pa­tion in do­mes­tic mar­kets and fi­nan­cial busi­nesses.

“In the long run, Chi­nese bro­kers have the po­ten­tial to ex­pand their mar­ket-mak­ing ser­vices to over­seas com­pa­nies, which is ex­pected to be a vi­able way to boost the promi­nence of the yuan in­ter­na­tion­ally,” he said.

WANG QIMING / FOR CHINA DAILY

Pedes­tri­ans walk past a branch of Haitong Se­cu­ri­ties in Nan­jing, Jiangsu province.

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