Industronics, China corp to set up US$1bil investment bank

Industronics factory in Malaysia (File pic)

KUALA LUMPUR: Industronics Bhd is collaborating with China’s state-owned investment holding company, State Development and Investment Corp Ltd (SDIC), with a view to setting up a local investment bank in Labuan.

In a statement yesterday, Industronics said it would work with regulators on attaining the necessary compliance-related issues and other required approvals.

It added that the SDIC would provide access to an estimated US$1bil (RM4.5bil) in funding for the initial set-up and expansion of asset management and capital market services.

The group said it entered into a memorandum of understanding for this collaboration, that was in line with its proposed acquisition of a 10% stake in Bluemount Financial Group Ltd, a Hong Kong-based stockbroking, asset management and credit firm.

Industronics executive director Datuk Chu Boon Tiong said the group is confident that its business network and expertise on the local front will help expedite the setting up of the investment bank.

“Industronics’ expertise in cloud solutions and digital offerings, the proposed acquisition of Bluemount and collaboration with SDIC, will put the group in the driver’s seat to push for digital brokerage services in the region, as well as the capturing the potential delisting of China companies in the United States,” he said.

The Industronics executive director added that their future collaboration plans involved acquisitions or collaborations with a local stockbroking firms in Malaysia. — Bernama