China Eagle Securities will set up an asset management company in Shanghai this year to diversify the group's financial services, as it tries to weather China's severe stock-market downturn. Regulatory watchdog, the China Securities Regulatory Commission (CSRC), has already granted the securities company approval to set up an asset management company with 100 million yuan (about HK$93.7 million) in registered capital. China Eagle's president's office director Wu Shounan said: 'We need to completely discard the current way of relying on stock trades [to earn revenues]. We need to get into quality management like Hong Kong, and provide customers with financial planning services.' Last year, China Eagle set up venture capital and Internet arms, and executives have said previously they would like to eventually expand into other areas such as commercial banking and insurance. China Eagle's move to diversify is not uncommon in China's securities industry. Many Chinese securities companies have been restructuring and cutting costs, as mainland stock market indices have dived more than 30 per cent since last June. The CSRC's stingy approval of A-share initial public offerings has also hurt. Last year, China Eagle laid off about 10 employees from its investment banking division as part of a restructuring. In a sign of where the firm's priorities are now, China Eagle will be looking to hire Hong Kong talent with experience in asset management and sales at this weekend's CareerExpo. 'Before we would wait for customers to come to trade stocks. That time has passed. We need to close the gap with Hong Kong and international standards. We need to sell our financial products,' said Zhang Wei, director of China Eagle's investment banking office. Now that the mainland is a member of the World Trade Organisation, foreign investors will be allowed to buy into the nation's securities companies in three years. China Eagle is already in talks with potential foreign joint venture partners. However, its executives are remaining tight-lipped about their identities this early in the game.