Hang Seng Securities and Guangzhou Securities set up JV

The company will provide Mainland customers with securities investment advisory services under China and Hong Kong Closer Economic Partnership Arrangement.

Hang Seng Securities Limited (Hang Seng Securities), a wholly-owned subsidiary of Hang Seng Bank, signed a memorandum of understanding Monday in Hong Kong with Guangzhou Securities Company Limited (Guangzhou Securities) to take an important step in their application to set up Guangzhou GuangZheng Hang Seng Securities Investment Advisory Company Limited.

This is the first ever application to set up a joint venture securities investment advisory company in Guangdong province under Supplement VI to the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA).

It will provide Mainland customers with securities investment advisory services. Mrs Margaret Leung, Vice-Chairman and Chief Executive of Hang Seng Bank, and Mr Zhang Zhaoxing, Chairman of Guangzhou Securities, attended the signing ceremony.

Mrs Leung said: “Hang Seng is very pleased to have Guangzhou Securities as its partner in applying to set up the first joint venture securities investment advisory company on the Mainland. Our partnership fully reflects the opportunities brought to the financial sector by CEPA and the development of the Pearl River Delta, which have further enhanced the cooperation between Hong Kong and the Mainland financial industry. This new investment is also an important step forward for Hang Seng to expand its business on the Mainland.”

Mr Zhang said: “Guangzhou Securities is delighted to apply to set up the joint venture securities investment advisory company together with Hang Seng. The goals of setting up the joint venture are to enhance the innovation of the securities industry as well as the professional standards, marketing and internationalisation of research business in Guangzhou. It is also an important move to strengthen cooperation between Guangdong and Hong Kong, and an attempt to promote closer economic partnership between the Mainland and Hong Kong. With the rapid growth of the Mainland market and more frequent cross-border cooperation, the joint venture will offer more diversified investment advisory services to customers.”

Guangzhou GuangZheng Hang Seng Securities Investment Advisory Company Limited will engage in compiling analysis reports on the valuation of securities and securities related products, as well as conducting market research. Timely reports will be disseminated to its Mainland institutional investors and individual investors in Guangdong province, according to a Hang Seng Securities report.

Hang Seng Securities will acquire a 33% stake in Guangzhou GuangZheng Hang Seng Securities Investment Advisory Company Limited, in compliance with the stipulation under Supplement VI to CEPA; while Guangzhou Securities will take up a 67% stake.