Industrial Bank plans to acquire brokerage Huafu Securities
Industrial Bank plans to acquire brokerage Huafu Securities, sources said, as the mainland's securities regulator considers allowing lenders into the industry.
Industrial Bank plans to acquire brokerage Huafu Securities, sources said, as the mainland's securities regulator considers allowing lenders into the industry.
The mainland lender had submitted its proposal to the State Council, the sources said. Huafu's Communist Party committee had moved its office into Industrial Bank's headquarters in Fuzhou, Fujian, two sources added.
The plan underscores the potential for more competition for brokers, a prospect which drove down the shares of firms including Citic Securities yesterday. The China Securities Regulatory Commission said on Friday that it was studying a proposal to let banks apply for brokerage licences, without giving any timetable for a decision.
"Brokerages will come under heavy pressure if banks are allowed to enter this area," said Luo Yi, an analyst at Huatai Securities in Shenzhen.
Industrial Bank jumped 9.8 per cent in Shanghai, heading for the biggest gain since September 2013, before settling up 8.72 per cent at 14.71 yuan (HK$18.50).
After surging last year as the stock market boomed, mainland brokerages have pared gains this year as share-trading volumes moderate. Citic, the largest Chinese brokerage by market value, fell as much as 4.7 per cent in Shanghai yesterday before trimming its losses to end 1.6 per cent down at 27.66 yuan.
