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Citic plans stake sale ahead of margin trading
By Winny Wang |
March 15, 2010, Monday
|
Online Edition
Online Edition
CITIC Securities Co plans to sell part of its stakes in two subsidiaries to comply with regulatory requirements and pave the way for its operation of margin trading.
The country's largest listed brokerage will transfer part of its stakes in China Securities Co and China Asset Management Co to regulate its holding proportion and avoid horizontal competition, according to its statement filed to the Shanghai Stock Exchange.
The securities regulator has ruled that an institute can hold stakes in no more than two securities companies and hold controlling stakes in only one. Besides, the institute can't own more than 49 percent of a fund company.
It also urged brokerages which want to test the country's margin trading and short-selling program to solve problema ahead of the launch.
"The stake transfer will eliminate uncertainties of Citic Securities' participant of margin trading and short-selling to make it the first batch of brokerages that deal in the project," said Liang Jing, an analyst at Guotai Jun'an Securities Co.
The brokerage, which holds a 60-percent stake in China Securities Co and a 100-percent stake in China Asset Management Co, didn't specify the proportion of stakes it plans to transfer or name the stake buyer. But media reports said Lenovo Group will buy its entire stakes in China Securities Co for about 8 billion yuan to 9 billion yuan.
The country's largest listed brokerage will transfer part of its stakes in China Securities Co and China Asset Management Co to regulate its holding proportion and avoid horizontal competition, according to its statement filed to the Shanghai Stock Exchange.
The securities regulator has ruled that an institute can hold stakes in no more than two securities companies and hold controlling stakes in only one. Besides, the institute can't own more than 49 percent of a fund company.
It also urged brokerages which want to test the country's margin trading and short-selling program to solve problema ahead of the launch.
"The stake transfer will eliminate uncertainties of Citic Securities' participant of margin trading and short-selling to make it the first batch of brokerages that deal in the project," said Liang Jing, an analyst at Guotai Jun'an Securities Co.
The brokerage, which holds a 60-percent stake in China Securities Co and a 100-percent stake in China Asset Management Co, didn't specify the proportion of stakes it plans to transfer or name the stake buyer. But media reports said Lenovo Group will buy its entire stakes in China Securities Co for about 8 billion yuan to 9 billion yuan.
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