KUALA LUMPUR: Bank Negara Malaysia has given CIMB Group Holdings Bhd the green light to incorporate a Malaysia-based JV company in the CIMB-China Galaxy Securities joint venture partnership.
The JV company will be the holding company of Jupiter Securities Sdn Bhd, the platform that will be used for the Malaysia stockbroking business of CIMB and China Galaxy Securities Co Ltd.
CIMB and China Galaxy will have equal stake in the Malaysia JV company, through their respective wholly-owned subsidiaries CIMB Group Sdn Bhd and China Galaxy International Financial Holdings Limited.
CIMB Group’s Malaysia stockbroking business comprises 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.
Group CEO of CIMB Group Tengku Datuk Seri Zafrul Aziz said he is pleased to have received the regulatory approvals that enable the group to place the final piece – our Malaysia stockbroking business – in the CGS-CIMB regional securities partnership.
The partnership enables both to benefit from shared expertise, digital innovation and market access in order to raise the game for Malaysia’s stockbroking industry, he said.
The Pan-Asian CGS-CIMB partnership will also enable the group to scale up and reap even more opportunities, especially digitally, in the stockbroking industry in both ASEAN and China, Zafrul said.
The central bank’s approval relates to the second of the two-part JV partnership with China Galaxy.
The first part, which relates to CIMB’s stockbroking business outside Malaysia, was completed on Jan 18, 2018.