CIMB and China Galaxy Securities complete transactio
CIMB Group Holdings Berhad (CIMB) and China Galaxy Securities Co. Ltd. (CGS) have announced that they, through their respective wholly-owned subsidiaries CIMB Group Sdn Bhd and China Galaxy International Financial Holdings Limited (CGI), have completed the sale and purchase of 50 per cent interest in CIMB Securities International Pte Ltd (CSI).
With the completion, CIMB and CGS have now become 50:50 shareholders of CSI (the JV) and CSI will be rebranded as CGS-CIMB Securities once regulatory approvals are obtained.
CSI is the holding company of CIMB’s ex-Malaysia stockbroking business comprising institutional and retail brokerage, and equities research in Indonesia, Singapore, Thailand, Hong Kong, South Korea, India, the UK and the USA. The transaction would improve CIMB’s cost-to-income ratio by over 100 bps and Core Equity Tier 1 ratio by around 10 bps.
The JV marks the first foray by a Chinese stockbroker into Southeast Asia, and the start of a long-term strategic partnership between CIMB and CGS. The stockbroking JV will benefit from CIMB’s established network and footprint in Southeast Asia, and CGS’s technological know-how, wide client base, as well as deep presence in and access to the Chinese market. CIMB and CGS also see this JV as the first step to facilitate greater investment and capital flows between their respective markets.
