CASH Financial Services Group has teamed up with China-based brokerage Liaoning Securities to form a joint venture in a bid to tap the mainland's corporate finance market. Liaoning Securities' chief executive Zhi Xinfu said the companies had established an equal joint-venture firm, CASH Liaoning Investment Consultant, with a registered capital of 2.5 million yuan (about HK$2.34 million). The new company will provide corporate finance advisory services to mainland companies seeking to list in Hong Kong. Mr Zhi said: 'We not only have an extensive network of more than 40 branches in China but also have an extensive database of customers who are potential clients for the joint venture.' Among the mainland's more than 200 brokerages, Liaoning Securities ranks 31st in terms of turnover, according to Mr Zhi. Kenneth Wong, the chief executive of CASH Financial, said that given the launch of Shenzhen's second board had been delayed, he expected China companies would increasingly consider a Hong Kong listing. The proposed second board was expected to be similar to the Growth Enterprise Market, handling a maximum of 200 listings a year. The plan was reportedly shelved at least until China's next generation of leaders takes over next year. Mr Wong admitted that Hong Kong's high costs might make mainland companies think hard before going for a Hong Kong listing. However, 'the high costs can be compensated by savings in other areas such as risk costs and opportunity costs', Mr Wong said, pointing to the SAR's sophisticated financial infrastructure. A Hong Kong listing can easily cost more than HK$10 million, even for a fund-rasing exercise of less than $100 million, because of the Hong Kong Exchanges and Clearing's listing fee and other charges. These costs are as much as 10 times higher than those associated with a mainland listing.