Banking News
- Everbright Securities sees profit growth
Date: 10-Jan-2007 Sources: (Shenzhen Daily)
CHINA Everbright Securities Co., partly owned by Hong Kong-listed China Everbright Ltd., expects its net profit to rise more than 15 percent in 2007 from 2006, president Xu Haoming said yesterday.
Unaudited net earnings in 2006 reached 800 million yuan (US$102 million), Xu said, without giving a comparative figure.
The brokerage was also in talks with Singapore's Temasek regarding the possibility of setting up a brokerage joint venture, Xu said.
'Our company is actively planning a slew of new businesses, including warrants, margin and index futures trading as the domestic securities markets are developing well,'Xu said.
The benchmark stock index jumped 130 percent in 2006 to become the world's top-performing major equity market, helped by official market-friendly steps including encouraging large, high-quality companies to float shares domestically.
Xu also said the brokerage was preparing to raise more than 1 billion yuan through a private placement to four or five institutional investors for expansion. He did not elaborate.
Earlier, Shanghai-based Dazhong Transportation (Group) Co. said it would pay about 158.4 million yuan for 60 million of the shares to be issued by China Everbright Securities, which now has a total share capital of 2.45 billion yuan.
China Everbright Ltd., which owns 46.6 percent of the brokerage as its second-largest shareholder, would not participate in the share placement and its stake in the brokerage would drop to around 40 percent, Xu said.
China Everbright Securities' largest shareholder is China Everbright Group, the country's second-largest financial conglomerate, which now owns 48.5 percent of the brokerage.
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