The Everbright Bank of China has underwritten 18.6 percent of the shares in Shenyin & Wanguo Securities Co. to become its biggest shareholder.

The Everbright Bank bought the 246 million shares in China's oldest securities company from the Industrial and Commercial Bank of China.

The new chairman of the board of Shenyin & Wanguo, Liu Mingkang said the move is part of Everbright's preparation for a new round of stiff competition with foreign counterparts.

With registered capital worth 1.3 billion yuan, Shenyin & Wanguo is now the largest stock trading company in the Shanghai Stock Exchange and the fourth biggest in the Shenzhen Stock Exchange.