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Haitong takes over HK's Taifook

HAITONG Securities Co has become the first mainland securities firm to take over an overseas brokerage through its purchase of Hong Kong-based Taifook Securities Co.

Haitong, China's second largest securities firm by market value, bought a 52.86 percent stakes in Taifook, Hong Kong's second largest publicly traded brokerage, to strengthen its overseas presence, according to a filing to the Shanghai Stock Exchange today.

Haitong would pay 4.88 Hong Kong dollars (62.9 US cents) for each share, which valued Taifook's stock at 2.3 percent more than its trading price last Friday. It brought the deal to 1.82 billion Hong Kong dollars in total.

"This is an important step in Haitong's strategy of going global," the filing said.

Dai Ming, an analyst at the Kingsun Investment Management Co, said the investment is a good bargain.

"The price is reasonable and Taifook is an ideal platform for Haitong to extend its business scope and reach out to the overseas markets," Dai said.

Taifook has a network of more than 120,000 retail and institutional investors in Hong Kong, the world's fifth largest stock market, and Macao. It also established representative offices in Beijing and Shanghai, and set up six consultative agencies in Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou and Xiamen.


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