Top Biz News

Huatai buys 49% of Great Wall Futures

By Jin Rong (China Daily)
Updated: 2006-08-01 10:12

Huatai's acquisition of Great Wall is the latest move by a securities firm to take over or buy stakes in the futures trade.

Other leading securities firms such as Guotai Jun'an Securities, China Merchants Securities and CITIC Securities, are also considering or are already in the process of buying stakes in futures companies.

Huatai, with a registered capital of 2.2 billion yuan (US$276 million), is currently embarking on an ambitious plan to develop itself into a multi-functional financial conglomerate covering asset management, securities, futures and investment banking.

Great Wall Futures Co, which is 15 per cent owned by Great Wall Securities, was ranked fourth by trading volume among the country's 183 futures companies in 2005.

Founded in 1994, the Guangzhou-headquartered futures company has six branches.

Huatai, which has just acquired another securities firm, Union Securities, is aiming to expand its outlets from around 100 to 150.

Last year, the Nanjing-based securities firm acquired Asia Securities.

In 2004, it teamed up with US financial giant AIG Global Investment Corp to set up AIG-Huatai Fund Management Co, which is now 49 per cent owned by Huatai.

One year earlier, it bought 45 per cent of the China Southern Fund Management Co, becoming its largest shareholder.