Bank Negara approves CIMB-China Galaxy JV
KUALA LUMPUR: CIMB Group Holdings Bhd has received the nod from Bank Negara Malaysia (BNM) to form a joint venture company (JV Co) incorporated in Malaysia with China Galaxy Securities Co Ltd, that will serve as the holding company for its stockbroking business Jupiter Securities Sdn Bhd.
CIMB told the stock exchange that the two parties will be entering into relevant agreements to formalise the proposed partnership as well as to incorporate the JV Co, to be equally held by CIMB Group Sdn Bhd and China Galaxy International Financial Holdings Ltd.
“We are extremely pleased to have received regulatory approvals to enable us to place the final piece – our 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. Additionally, the Pan-Asian China Galaxy-CIMB partnership will also enable us to scale up and reap even more opportunities, especially digitally, in the stockbroking industry in both Asean and China,” said CIMB group CEO Tengku Zafrul Aziz in a press statement.
“I am confident this partnership will offer better solutions, greater market access and a differentiated value proposition to existing and future clients of the joint venture as well as to both China Galaxy and CIMB,” he added.
The approval from BNM is the second of the two-part joint venture partnership with China Galaxy, with the first being in relation to CIMB’s stockbroking business outside Malaysia, which was completed on Jan 18.
CIMB Group’s Malaysian stockbroking business comprises institutional and retail brokerage, share margin financing for broking clients, equity financing services and equities research, as well as exchange listed derivative broking under CIMB Futures Sdn Bhd.
Its share price closed unchanged at RM5.93 with 10.59 million shares done.