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Orient AMC gets nod to set up brokerage

(Shanghai Daily)
Updated: 2007-03-02 14:53

China Orient Asset Management Corp (AMC) said yesterday it has won regulatory approval to set up a securities subsidiary, leading a race with three rival state bad-debt managers to launch commercial operations.

The new firm, called Dongxing Securities Co, will be based in Beijing with a registered capital of 1.504 billion yuan (US$194 million), China Orient said in a statement.

"Receiving approval to form the venture is an important achievement in the company's moves to reform and start commercial operations," the statement said.

Industry sources had told Shanghai Daily early last month China Orient would site the new broker's investment banking unit in Shanghai. The asset manager is recruiting a general manager for the stock underwriting business, the sources said.

China created four asset management companies in 1999 - Great Wall, Cinda, Huarong and China Orient - to help clear up the balance sheets of the nation's four biggest banks.

All the AMCs concluded clearing up billions of yuan worth of bad debts at the lenders in a government-directed campaign early this year, in a move to transform the banks into financial conglomerates.

Dongxing Securities will be set up with securities assets of China Orient bought from troubled Minfa Securities Co, the sources said. China Orient is also looking for professionals nationwide to fill some 30 senior posts at Dongxing, they added.

Media reports said in January China Great Wall AMC and Huarong AMC were gearing up efforts to form brokerage arms and may unveil plans soon.