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Shanxi Securities lures investors, plans listing

(Shanghai Daily)
Updated: 2007-03-28 15:04

Shanxi Securities Co is planning to lure domestic and overseas strategic investors with an aim to list shares publicly by 2009, industry sources said yesterday.

The Shanxi Province-based broker is poised to place stocks with select investors to shore up capital to qualify for a first-tier position amid an industry overhaul, according to people familiar with the matter.

"There's a three-year plan and for 2007 the brokerage hopes to boost capital to join a batch of the market's top-level players," said a source close to the securities house.

"It wants to attract investors home and abroad and eventually list domestically."

The sources said Shanxi Securities may initially sell shares to Chinese investors as regulators still ban foreigners from conducting equity investments in domestic brokers.

But the Shanxi brokerage would continue to beef up its cooperation with Morgan Stanley and HSBC on the technical side to tap advanced overseas expertise, the sources said.

Morgan Stanley in 2005 sought to buy a controlling stake in Shanxi Securities only to withdraw after meeting regulatory hurdles. HSBC has formed a partnership with the Chinese broker in helping Shanxi-based firms list overseas.

Chinese authorities are on track to wrap up a securities-sector revamp by the end of August in an attempt to halve the number of 120-odd industry players via mergers and acquisitions.

The stock watchdog, which categorizes the country's brokers into four levels in terms of capital and financial conditions, is supporting about 20 first-tier brokers to seek public listings for funds to expand.

"Shanxi Securities wants to press ahead with new businesses this year," said a second source. "It will strive to enhance internal controls and give investment banking a priority consideration."

The broker launched a nationwide campaign this month to look for investment-banking talents to work in Shanghai, Shenzhen, Beijing and Taiyuan, the source said.


(For more biz stories, please visit Industry Updates)



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