Fujian broker mulls Hong Kong float in expansion

Industrial Securities, a medium-sized brokerage on the mainland, is considering a listing in Hong Kong as it follows bigger domestic rivals in exploring overseas markets.

Liu Zhihui, the president of the Fujian company, said it would also look for acquisition targets abroad to reinforce its global expansion.

"When conditions are ripe, we will make investments to achieve our goal of globalisation through mergers and acquisitions as well as a H-share listing," Liu told a media briefing in Shanghai. "The moves will help our company expand faster."

He did not disclose details such as the fundraising size and timeframe for the expected Hong Kong initial public offering.

Industrial Securities is the latest mainland brokerage to unveil its ambitions of going global after the country's largest brokerages including Citic Securities and Haitong Securities listed in Hong Kong while making acquisitions overseas.

Citic Sec bought CLSA Asia-Pacific Markets while Haitong acquired Taifook Securities as the two mainland firms spearheaded a "go outbound" campaign to diversify revenue sources.

On the mainland, securities firms rely heavily on brokerage fees from retail investors' trading of shares.