This week's merger of major Singapore financial service providers DBS Group Holdings and Vickers Ballas Holdings could trigger a long-awaited wave of consolidation in Hong Kong's fragmented stockbroking industry.
Combining DBS's research capability and wide range of asset management products with Vickers' Asian distribution network had created a formidable new competitor in the region and in Hong Kong, analysts said.
'This move will accelerate the need for local broking houses to merge,' KGI Securities vice-president of research Sunny Chan said.
'There are more than 500 stockbroking companies in Hong Kong and the general trend in the industry is towards consolidation.
'The only way to survive in the industry is by achieving scale - and DBS and Vickers have done that with their merger.'
In Hong Kong, Vickers Ballas has 131 remisers and dealers to 27 for DBS.