Shenzhen's top brokerage, Guangfa Securities, is joining the growing ranks of mainland securities houses seeking a foothold in Hong Kong.
The Guangdong brokerage, which handled the largest volume of shares traded on the Shenzhen exchange last year, has applied to the People's Bank of China (PBOC) for permission to set up a branch office in Hong Kong, sources said.
The planned move - pending PBOC approval - could allow Guangfa to conduct broking activities in China and Hong Kong equities, as well as advisory and consultation services in the SAR, they said.
The move - the first of a series of plans by the company to expand its international presence - will put it among some of the biggest names in the mainland's broking industry with a Hong Kong presence.
These included China Southern Securities, J & A Securities, Shenyin & Wanguo Securities and China Everbright Securities.
Last year, Guangfa traded stocks worth a combined 197.7 billion yuan (about HK$183.56 billion) on the Shanghai and Shenzhen stock exchanges, through its more than 40 stock trading offices on the mainland.
In Shenzhen alone, it traded 101.9 billion yuan, of which 98.3 billion yuan was traded in A shares.
