Citic Securities to acquire local rival in expansion push

  • Business
  • Thursday, 27 Dec 2018

SHANGHAI: Citic Securities Co signed a preliminary agreement to buy smaller rival Guangzhou Securities, the latest in a series of acquisitions by China’s largest brokerage.

Citic Securities plans to fund the purchase by issuing shares to the current owners of Guangzhou Securities – Hong Kong-listed Yuexiu Financial Holdings Group and one of Yuexiu’s wholly-owned units, according to a filing to Shanghai stock exchange.

The acquisition is in line with Citic Securities’ strategy of expanding via asset purchases amid a market downturn, said Founder Securities Co analyst Zuo Xinran.

The latest acquisition will strengthen Citic Securities’ presence in southern China after its failed bid to buy a stake in GF Securities Co in 2004.

Shares of Chinese brokerages have plunged this year as retail investors flee the nation’s sinking stock market amid escalating trade tensions with the US.

Citic Securities has acquired a number of brokerages, including Credit Agricole SA’s CLSA, Wantong Securities Co and Goldstone Securities Citic Securities will conduct due diligence on Guangzhou Securities and will hire financial and legal consultants to carry out the planned transaction, according to the filing.

Trading of Citic Securities shares was suspended on Tuesday and is expected to resume within five days, the filing said. — Bloomberg

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Business , Citic , rival , push


Next In Business News

Genetec says EV sector orders lifted Q1 earnings�
Singapore Airlines first-quarter loss narrows on cargo demand boost
Tough going for blue chips, Public Bank dips below key RM4
CGS-CIMB Securities launches two Shariah-compliant products
Public Mutual launches Public e-Pioneer Entrepreneur Fund
Maybank AM launches All-China Focus Equity Fund
Paying household bills automatically via Boost
Keel laying of T7 Global’s MOPU underway in China
PropertyGuru: More homeowners selling property for cash flow
Zafrul: Govt to strengthen fiscal position, broaden revenue base

Stories You'll Enjoy