Worldsec International (Hong Kong) - rumoured to be merging with the SAR unit of Vickers Ballas Holdings - says it is in the dark on reports the two are joining forces in a bid to cut costs.
In Hong Kong, Worldsec director Carlton Poon said he was aware of reports on a merger, but that there was a lot of consolidation talk as domestic brokers prepared for reforms and new challenges.
'Basically, with the changes in the industry, there are a lot of rumours going on out there and I don't know how many of these will happen as a result of this,' Mr Poon said.
Vickers Ballas is a Singapore based and listed financial services group with Hong Kong operations. Worldsec is listed on the London Stock Exchange with its biggest operations in Hong Kong.
In Hong Kong, both are considered middle-tier brokers - a segment of the brokerage industry many believe needs to change the way it operates to compete with the dominance of the larger, global investment houses.
Vickers Ballas - which was last year taken over by the Singapore-Government owned Singapore Technologies - is thought to be the suitor.