Caixin
Feb 13, 2012 06:52 PM

Domestic Brokerages Prepare for IPOs

a

(Beijing) -- Chinese brokerage firms, Galaxy Securities and Guotai Junan Securities are gearing up for a public listing, despite sluggish business for the sector in 2011, Caixin learned from sources close to the situation.

Caixin learned that the two brokerage firms will act as underwriters for each other in the planned initial public offering.

A source close to Guotai Junan said that the firm expects to complete the listing within the year. To prepare the IPO, Guotai Junan aims to raise its revenue in the investment banking business to 1.2 billion yuan this year from 700 million yuan last year, said the source.

However, many Chinese securities firms saw flagging growth since last year spurring some to downsize operations.

Caixin learned that the investment banking department of China International Capital Corp. cut 30 staff against the backdrop of declining business.

A source from Guotai Junan said that there are no plans for layoffs at the company as it reached its target last year, adding that the increase in this year's business target by 70 percent was an indication of optimism by the company's board of directors.

Galaxy Securities issued some wage cuts in the company this year, according to a company source.

Established in 1999, Guotai Junan currently has a Hong Kong-listed subsidiary Guotai Junan International. Galaxy Securities was set up in 2007 and is currently controlled by Central Huijin Investment, the investment arm of China's sovereign wealth fund, China Investment Corp.


 

You've accessed an article available only to subscribers
VIEW OPTIONS
Share this article
Open WeChat and scan the QR code