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Official Denies Merger Rumours
Senior officials from the Beijing-based China Securities Company and the local brokerage Beijing Securities Tuesday brushed off rumours that the two firms would merge to increase competitiveness.
"We have no plans to merge," said a spokesperson with China Securities yesterday, refuting a report claiming that the nationwide securities company would join hands with Beijing Securities to expand market shares in Beijing and North China.
The spokesperson said the company would not consider any attempt to merge with any of its domestic counterparts in the near future.
A report by a Hong Kong newspaper said on Monday the two companies would merge as part of the domestic firms' effort to increase strength and face foreign challenges stemming from China's pending entry into the World Trade Organization (WTO).
Xie Taifeng, manager of the research and development centre of Beijing Securities, also denied the merger report.
"We have just expanded our asset scale through absorbing more share holders," Xie said.
The newly completed expansion programme nearly doubled the company's asset volume, from the original 850 million yuan (US$102.4 million) to 1.5 billion yuan (US$180 million).
The company is also waiting for permission from securities regulators to be upgraded to a comprehensive securities firm, which would further increase its business scope.
"We are planning to open some branches in the Guangxi Zhuang Autonomous Region and Fujian Province this year, " Xie said.
The plan, along with the recent introduction of more strategic investors, accelerated the company's effort to become a nationwide securities firm, he said.
Last year, China Securities was ranked among the top 20 domestic brokerages in terms of net assets and profit volumes by the Securities Association of China.
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