Sitis may have to cap asset injection
Shenzhen International Trust and Investment Securities (Sitis) may have to scale down its original plan to expand registered share capital to one billion yuan (about HK$930.3 million), sources say.
The Sitis expansion programme, under the banner of Shenzhen International Trust and Investment Corp (Sitic), is part of Shenzhen's plan to boost home-grown brokerages.
Sitic is owned indirectly by the Shenzhen municipal government through Shenzhen Investment Management Co.
Sources say there has been talk that Sitis will trim the planned asset injection from one billion yuan to about 500 million yuan.
Analysts said the reduction in share capital would enable the People's Bank of China to better control brokerages.
As China's three state-owned national brokerages each have a registered capital of one billion yuan, the analysts said it might be difficult for regional brokerages to ask for the same.