It is the third such securities broker initiated by a state-owned asset manager. The other two are Huarong Securities funded by China Huarong Asset Management Corporation (Huarong AMC) and Cinda Securities invested by China Cinda Asset Management Corporation (Cinda AMC).
In February 2007, Orient AMC received an approval from China Securities Regulatory Commission (CSRC) for preparing a securities firm with registered capital of CNY 1.5 billion. CSRC on May 12 this year approved of the opening of Dongxing Securities.
The newborn's business scope covers securities brokerage, securities investment and consultancy, securities underwriting and other related services. It marks the parent company Orient AMC's conversion into a commercial player.
Established on the basis of Fujian-based MF Securities, Dongxing Securities currently has 48 outlets nationwide, including 29 business offices and 19 service units, with total 600,000 clients, whose assets total up to CNY 36.6 billion. There are over 800 employees at Beijing head office and all outlets.
Notably, Dongxing Securities is set to focus heavily on investment banking business. On the one hand, it vows to help Orient AMC dispose of non-performing assets. On the other hand, it aims to explore new market.
As the parent company, Orient AMC will provide as much help as possible for Dongxing Securities. In fact, the broker has already had some projects on hand, including some initial public offering projects.
The new broker did not have an inauguration ceremony. Instead, it announced its opening in the form of making donations to southwest China's Sichuan Province, where a terrible earthquake broke out on May 12, 2008. Chairman Zhang Ziai of Dongxing Securities has delivered CNY 1 million donations to the earthquake victims.
Together with Cinda AMC and China Great Wall Asset Management Corporation (Great Wall AMC), Orient AMC last month won the bid to buy the non-performing assets of Beijing-based China Everbright Bank, who is now preparing a listing in domestic stock market in the near future.
Orient AMC itself bought the lender's assets in Changsha, Shenyang and so forth at a combined cost of CNY 415 million.
As the banking arm of China Everbright Group, Everbright Bank reaped net profits of CNY 4.57 billion, CNY 1.83 billion more than that for 2006. It expects to go public circa August.
(USD 1 = CNY 6.99)
From www.cnstock.com, Page 1, Friday, May 16, 2008 info@SinoCast.com
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
|
|
