The world's second largest inter-dealer broker Compagnie
Financiere Tradition (CFT) and Ping An Trust launched China's third
largest money brokerage yesterday.
"The new joint venture over time will be a healthy contributor
to the ongoing development of the domestic financial markets in
China," CFT Chairman Patrick Combes said in a statement.
Ping An Trust, a subsidiary of China's second largest insurer
Ping An, holds 67 percent of the new venture. CFT takes the rest.
With registered capital of 50 million yuan, the company is based in
Shenzhen and will start operation in six months.
The joint venture, Ping An Tradition International Money Broking
Co Ltd, will provide all money broking services for the interbank
lending, bond and foreign exchange derivative markets, both locally
and overseas.
The deal is an important step for Ping An Group's financial
business as it tries to become a leading group worldwide, said Hoi
Tung, CEO and chairman of Ping An Trust.
With a presence in 24 countries, Switzerland-based CFT is the
world's third largest interdealer broker and covers fixed-income
securities and derivatives, interest rate derivatives, treasury
products, equities and energy.
China approved inter-dealer brokers to operate in its foreign
exchange and money markets in 2005. But as few local financial
institutions are experienced in these areas, foreign players are
encouraged to share expertise with local partners to develop
sophisticated markets.
The China Banking Regulatory Commission stipulated a
money-broking joint venture should have minimum registered capital
of 20 million yuan. Only top international money brokers with 20
years' professional experience and a two-year presence in China are
qualified to set up joint venture money brokerages in the
nation.
Tullett Prebon, the world's second largest inter-dealer broker,
set up China's first money broker in December 2005 with Shanghai
International Trust and Investment Corp, a government-owned
investment firm.
The world's biggest inter-dealer broker ICAP and an arm of the
central bank launched China's second money brokerage last
September.
(China Daily January 30, 2008)
