Chinese brokerage Citic Securities to acquire local rival in expansion push

REUTERS/Kim Kyung-Hoon/Files

By Bloomberg News

December 26, 2018

Citic Securities Co. signed a preliminary agreement to buy smaller rival Guangzhou Securities, the latest in a series of acquisitions by China’s largest brokerage.

Citic Securities plans to fund the purchase by issuing shares to the current owners of Guangzhou Securities — Hong Kong-listed Yuexiu Financial Holdings Group and one of Yuexiu’s wholly-owned units, according to a filing to Shanghai stock exchange.

The acquisition is in line with Citic Securities’ strategy of expanding via asset purchases amid a market downturn, said Founder Securities Co. analyst Zuo Xinran The latest acquisition will strengthen Citic Securities’ presence in southern China after its failed bid to buy a stake in GF Securities Co. in 2004 Shares of Chinese brokerages have plunged this year as retail investors flee the nation’s sinking stock market amid escalating trade tensions with the U.S.

Citic Securities has acquired a number of brokerages, including Credit Agricole SA’s CLSA, Wantong Securities Co. and Goldstone Securities Citic Securities will conduct due diligence on Guangzhou Securities and will hire financial and legal consultants to carry out the planned transaction, according to the filing Trading of Citic Securities shares was suspended on Tuesday and is expected to resume within five days, the filing said.

Bloomberg

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.
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