SinoPac, Xiamen firm join for securities venture
The China Post news staff
February 5, 2013, 12:16 pm TWN
TAIPEI, Taiwan -- SinoPac Financial Holding yesterday announced that its subsidiary, SinoPac Securities, will team up with Xiamen Jincai Investment Co. to form a securities firm based in Xiamen City of China's Fujian province.
With the joint venture, SinoPac will become Taiwan's first company to work with a mainland partner to form a securities firm offering a full range of services, it said.
The new company, the name of which is yet to be determined, will be registered in Xiamen, which is one of the cities where the setting up of Taiwan-China securities joint ventures is allowed, as part of an agreement reached after a recent summit between the top financial regulators of Taiwan and China.
The capital of the new firm is tentatively set at 500 million yuan, of which 51 percent will come from SinoPac and 49 percent from Jincai.
The firm will begin in Xiamen and then expand to various Chinese cities where securities trading demand is strong, said Chang Chin-yuan, chief strategist with SinoPac.
According to Chang, the deal was made possible after a relaxation of rules regulating Taiwanese securities firms seeking to expand into China.
"In the past, the Chinese partner that an overseas securities firm must team up with needed be a local securities broker," Chang said. "But after last week's summit, it was concluded that Taiwan securities firms eyeing China may team up with someone that is outside the securities trading industry. This rule relaxation has set the stage for this business deal."
The proposal is still subject to regulatory approval from both sides, he said.