CIMB's Unit Sign Stockbroking Agreement With Chinese Company

KUALA LUMPUR, Oct 18 (Bernama) -- CIMB Group Holdings Bhd's (CIMB) wholly-owned unit, CIMB Group Sdn Bhd, has signed a heads of terms agreement with China Galaxy International Financial Holdings Ltd on Monday. In a statement Monday, CIMB said, the agreement was to explore a strategic partnership in the stockbroking business and identify further areas of cooperation in the relevant markets. China Galaxy International is a wholly-owned unit of China Galaxy Securities Co Ltd. CIMB said the stockbroking business comprised institutional and retail brokerage; equities research; and, associated securities businesses. It said following the signing, both parties will finalise negotiations, including one on a 50:50 joint venture (JV) in the stockbroking business, as well as target to execute definitive agreements within three months. "Through the JV, the group will be in an advantageous position to capitalise on China-outbound mergers and acquisitions, as well as other capital market activities through enhanced synergies and cross-selling opportunities. "We will also benefit from China's focus on infrastructure development projects, such as the 'One Belt One Road', which will facilitate further growth, consumption and capital flows into the region," it said. CIMB Group Chief Executive Officer, Tengku Zafrul Aziz, said the company will be better placed to capture the growing trade and investment flows with the partnership. --BERNAMA