CIMB GETS APPROVAL FOR CHINA GALAXY VENTURE
Nod from Bank Negara to incorporate Malaysia JVCo as Jupiter Securities’ holding company
CIMB Group has received Bank Negara Malaysia’s approval to incorporate a locally-based joint venture company (Malaysia JVCo) as the holding company of Jupiter Securities Sdn Bhd.
It said the platform will be used for the local stockbroking operations of CIMB and China Galaxy Securities Co Ltd.
CIMB and China Galaxy will each own a 50 per cent stake in the Malaysia JVCo, via their respective wholly-owned subsidiaries CIMB Group Sdn Bhd and China Galaxy International Financial Holdings Ltd.
CIMB Group’s Malaysia stockbroking operations consist of institutional and retail brokerage, share margin financing for broking clients, equity financing services and equities research and exchange-listed derivative broking under CIMB Futures Sdn Bhd.
CIMB Group chief executive officer Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the approval would enable the group to place the final piece of its Malaysia stockbroking business in the China Galaxy-CIMB regional securities partnership.
“We look forward to harnessing the benefits of shared expertise, digital innovation and market access to raise the game for Malaysia’s stockbroking industry,” he said.
Tengku Zafrul said the PanAsian China Galaxy-CIMB partnership would enable CIMB Group to scale up and reap even more opportunities, especially digitally, in the stockbroking industry in Asean and China.
“I am confident this partnership would offer better solutions, greater market access and a differentiated value proposition to existing and future clients of the joint venture and to China Galaxy and CIMB,” he said.
CIMB Group said the approval was in relation to the second of the two-part joint venture partnership with China Galaxy.
The first part, which refers to CIMB’s stockbroking business outside Malaysia, was completed on January 18.