UBS Securities to acquire futures brokerage in China
18 February 2014
Category: News, Asia, China
By Asia Asset Management
UBS Securities Co Limited (UBS Securities) has announced it is acquiring a majority shareholding in Shanghai Pumin Futures Brokerage Co Ltd (Pumin Futures), which has a registered capital of 30 million RMB (US$4.95 million). After a capital injection of 90 million RMB, UBS Securities will hold 95.42% of Pumin Futures. The regulator has approved the application for the equity transfer and capital increase.
David Li, chairman of UBS Securities, said: “UBS Securities is the first foreign invested securities firm in China with licenses to conduct a full range of securities businesses. We are excited to expand into the futures brokerage market, which has a strong growth potential. As pointed out at the 3rd plenum of the Party Congress, the Chinese government encourages financial innovation and aims to build a multi-layered financial market with more products. We expect new futures products to be introduced to the market soon.”
Yang Xia, head of equities of UBS Securities, added: “Our China equities business is committed to offering the most comprehensive range of services in the secondary market. As a critical step to realising this goal, we hope to make available a financial futures brokerage service to our clients in the future, and this complements our current offerings, including domestic equity advisory, QFII and RQFII brokerage, electronic trading strategy & execution and OTC derivatives.”
The Hushen 300 Index – China’s first financial futures product – launched in April 2010, registered a trading volume for the year of over 41 trillion RMB, representing 26.5% of the volume of all futures products. The financial futures market has grown exponentially since then. In 2013, the trading volume, including the newly-introduced treasury futures, reached 141 trillion RMB, or 52.72% of the total futures products’ trading volume.