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CTBC Financial to set up joint securities firm in Fujian

2015/07/30 12:40:06

Taipei, July 30 (CNA) CTBC Financial Holding Co. (中信金), one of Taiwan's leading financial holding companies, said Thursday that its wholly owned subsidiary, CTBC Securities (中國信託證券), will set up a joint venture in Fujian.

CTCB Financial said that its board of directors has approved a proposal in which CTBC Securities will team up with Fujian Huatou Investment Co. and Fujian Electronics and Information (Group) Co. to open a securities joint venture in the China (Fujian) Pilot Free-Trade Zone.

The three partners have signed an agreement for the joint investments, and the deal is pending approval from the Chinese authorities, CTBC Financial said.

If the deal goes through, CTBC Securities will be the first Taiwanese securities firm to set up a foothold in the free trade zone in Fujian, CTBC Financial said.

Under the agreement, the three partners will spend 800 million Chinese yuan (US$129 million) on the deal, with CTBC Securities taking a 49 percent stake in the joint venture, Fujian Huatou to own another 49 percent stake and Fujian Electronics and Information to hold the remaining 2 percent.

CTBC Financial said that the company has been in negotiations with the Fujian authorities since the second half of last year for a joint securities firm deal in the Chinese province.

The Taiwanese financial holding company said that the joint venture aims to seek a full-service license by taking advantage of investment incentives offered by the Fujian free trade zone to foreign investors. CTBC Financial said the joint venture is planning to file an application with the Fujian authorities in August to secure a full-service license.

In addition, CTBC Bank, the banking flagship of CTBC Financial, has filed an application with China's banking authorities to set up a branch in Fujian's Xiamen City. CTBC Financial said that Fujian has become one of its important bases for penetrating the China financial market.

In May, CTBC Financial announced that CTBC Bank would spend NT$11.67 billion to acquire China CITIC Bank International.

In turn, CTBC Bank will launch a private placement in which China CITIC Bank will acquire a 3.8 percent in the Taiwanese bank. China CITIC Bank is under the corporate umbrella of the CITIC Group, one of China's financial giants.

(By Tien Yu-pin and Frances Huang)