RBS brokerage JV to tap IPO demand
By Zhang Fengming |
May 31, 2011, Tuesday
|
Print Edition
Print Edition
THE Royal Bank of Scotland yesterday opened its securities joint venture in Wuxi in nearby Jiangsu Province as it seeks to tap the world's biggest initial public offering market.
RBS holds 33.3 percent, the maximum allowed under the law, in the joint venture, Hua Ying Securities Co, while Wuxi-based Guolian Securities Co owns the balance. It has a registered capital of 800 million yuan (US$123 million). Hua Ying will tap the IPO, debt and merger and acquisition markets.
China stood out as the world's biggest IPO market with 346 IPOs in 2010 with proceeds raised topping US$83.7 billion, an annual surge of 160 percent.
The two partners are optimistic about business opportunities that Shanghai's planned international board, which allows overseas companies to sell yuan-backed shares, will offer. Major overseas financial institutions and multinational companies, including London-based HSBC and Standard Chartered Bank, have said they want to be among the first batch of companies to list on the international board which may be launched as early as this year according to market speculation.
RBS hopes to use the joint venture to beef up its wholesale and investment banking business in China.
Two United States banks also obtained approval from the China Securities Regulatory Commission to set up a securities business with domestic partners.
In January, JPMorgan Chase & Co got the green light to form a brokerage joint venture with First Capital Securities Co while Morgan Stanley said its tie-up with Huaxin Securities Co has been approved.
RBS holds 33.3 percent, the maximum allowed under the law, in the joint venture, Hua Ying Securities Co, while Wuxi-based Guolian Securities Co owns the balance. It has a registered capital of 800 million yuan (US$123 million). Hua Ying will tap the IPO, debt and merger and acquisition markets.
China stood out as the world's biggest IPO market with 346 IPOs in 2010 with proceeds raised topping US$83.7 billion, an annual surge of 160 percent.
The two partners are optimistic about business opportunities that Shanghai's planned international board, which allows overseas companies to sell yuan-backed shares, will offer. Major overseas financial institutions and multinational companies, including London-based HSBC and Standard Chartered Bank, have said they want to be among the first batch of companies to list on the international board which may be launched as early as this year according to market speculation.
RBS hopes to use the joint venture to beef up its wholesale and investment banking business in China.
Two United States banks also obtained approval from the China Securities Regulatory Commission to set up a securities business with domestic partners.
In January, JPMorgan Chase & Co got the green light to form a brokerage joint venture with First Capital Securities Co while Morgan Stanley said its tie-up with Huaxin Securities Co has been approved.
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