CIMB plans to formalise tie-up with China Galaxy by the second quarter

Sources said that CIMB was looking at acquiring Jupiter Securities mainly to get an additional licence for its stock broking business that would eventually merge with China Galaxy Securities as part of a wider exercise to expand its reach and reduce cost. At the moment, CIMB already has a stock broking licence under its investment bank (IB). However, sources said it required another licence for the JV company that it is setting up with China Galaxy Securities to operate in Malaysia

PETALING JAYA: CIMB Group Holdings Bhd is targeting for its agreements with regard to its strategic partnership in the stockbroking business with China Galaxy International Financial Holdings Ltd (CGIF) to be executed by the second quarter of 2017.

In a filing with Bursa Malaysia yesterday, CIMB said China Galaxy Securities Co Ltd, the parent of CGIF, had announced the passing of resolutions by its board of directors in connection with the proposed partnership through the Shanghai Stock Exchange and the Stock Exchange of Hong Kong on March 24.