Taifook Securities Group would continue to seek buying opportunities to expand its asset management and pension fund business as part of its plan to diversify, according to managing director and chief executive Peter Wong Shiu-hoi.
The company last month completed its HK$34 million acquisition of entire stakes in Kingsway Asset Management, a Mandatory Provident Fund manager. The deal doubled Taifook's assets under management to HK$1 billion, Mr Wong said.
'There is a good economy of scale in taking over another fund company. We will continue to buy if there are good targets,' he said.
He said Taifook had traditionally been strong in broking and investment banking and now it wanted to add asset management as it third core business.
The diversification was due partly to the fact that even though broking was still profitable, the margin had declined amid increasing cost on research and customers services as well as competition from banks, he said.
Rival Sun Hung Kai Financial spent HK$4.32 billion to acquire lender UA Finance last year.