China developer Greenland sets up securities unit in Hong Kong

Shanghai-based Greenland Holding Group, one of China’s three largest developers, quickened its pace of diversification after the company launched its first securities affiliate to pursue fast growth in the financial sector.

Geng Jing, chief executive of Greenland Financial, said on Tuesday that the establishment of the securities subsidiary was part of the effort to make financial services one of the developer’s three core businesses, alongside the consumer and construction segments.

“Greenland is adamant in developing financial services which will generate one-third of the group’s total profits,” he said. “In the face of a severe slowdown, large-size companies in any industry would feel it is necessary to diversify into finance. It is a high-risk business, but it could generate high returns.”

Greenland’s setting-up of the Hong Kong-based securities firm, Greenland (Asia) Securities, would likely open a floodgate for more investments or acquisitions by the giant developer to tap the banking, insurance and securities businesses.

Greenland (Asia) will initially offer advisory and asset management services in Hong Kong, with a plan to have US$10 billion asset under management in three years.

The company will also apply for investment banking and brokerage licences in Hong Kong to reinforce the growth of the firm.