DBS gets nod to set up joint-venture securities company in China

Businesses that DBS Securities will engage in include brokerage and securities investment consulting.
Businesses that DBS Securities will engage in include brokerage and securities investment consulting.PHOTO: ST FILE

SINGAPORE (THE BUSINESS TIMES) - DBS Group has received the green light from the China Securities Regulatory Commission to establish a joint-venture (JV) securities company known as DBS Securities (China), in which DBS will have a controlling stake of 51 per cent.

The JV company will provide onshore products and services for both domestic and international customers, forming an important part of DBS' strategy in China, according to a press statement by Singapore's largest bank.

Businesses that DBS Securities will engage in include brokerage, securities investment consulting, securities underwriting and sponsorship, as well as proprietary trading.

With a registered capital of 1.5 billion yuan (S$298.9 million), its shareholders include Donghao Lansheng Investment Management with a stake of about 24.7 per cent, followed by Shanghai Huangpu Investment holding about 13.3 per cent. The other two shareholders are Shanghai Huiyang Asset Management at 6.5 per cent and Shanghai Huangpu Guidance Fund Equity Investment at 4.5 per cent.

DBS chief executive officer Piyush Gupta said that the group has been "supporting China's financial development in the past 30 years".

"The ability to set up a securities company in China represents yet another key milestone, enabling us to make available the best of DBS' capabilities and offerings, and provide customers in China with a full range of onshore and offshore financial services," he added.

Mr Neil Ge, China head of DBS Group, said the new JV will further support the bank's long-term sustainable development in China and provide more comprehensive financial services to Chinese customers.

About a quarter of DBS' total income comes from Greater China, but the bulk of that comes from the Hong Kong market.

DBS Bank opened its first representative office in Beijing in 1993 and was the first Singapore bank to incorporate in China in May 2007.

According to the banking group's website, DBS China has about 12 branches and 23 sub-branches, and has more than doubled its staff strength to over 1,900. Its business focuses are on institutional banking, global transaction services, treasury and markets, and SME (small and medium-sized enterprise) banking, as well as consumer banking targeting the affluent segments.