Exclusive | China Merchants Securities taps British market
Mainland broking giant steps up global expansion into commodities with London unit focusing on derivatives sector
China Merchants Securities, one of the mainland’s oldest and largest securities houses, has set up a subsidiary in Britain to expand into global capital and commodities markets, with a focus on derivatives – at a time when Western rivals are trying to scale back from a business that often comes with high profits and equally high risks.
Industry sources familiar with the matter told the South China Morning Post that CMS, headquartered in the southern boomtown of Shenzhen bordering Hong Kong, launched China Merchants Securities (UK) in London, but there was no official announcement yet.
CMS declined to comment.
Membership [in CME is] another step towards globalising our business
The company’s move to secure a footprint in Britain came around the same time that British Prime Minister David Cameron was keen to warm up Sino-British relations, with a focus on how to attract investment from the world’s No 2 economy and help his administration keep Britain’s economic recovery steady.
Cameron recently wrapped up his official visit to China and declared that Britain would be China’s biggest advocate in the West.
Stephen Chan, who is now a deputy CEO of China Merchants Securities (Hong Kong), has been named chairman of the new British unit, which CMS wholly owns.
Chan, a veteran investment banker specialising in the commodities business, will divide his time between London and Hong Kong, which will remain his primary office, said the sources.
Last month, CMS was granted membership in the Chicago Mercantile Exchange (CME), paving the way to accelerating its expansion into the global commodities market.