bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

hooksAmpRedirectArticle

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

paywallTypes

createdDate

publishedDate

sponsorType

urlAlias

moreOnThisArticles

commentCount

authorLocations

authors

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

articleSpeeches

socialHeadline

headline

images

flag

firstTopic

glossary

flattenTypeIds

image

relatedLinks

relatedNewsletters

__typename

sponsor

pdfFiles

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

Don Weinland

Haitong Securities will sell about HK$29.94 billion of new H shares in a private placement to seven investors, more than doubling the size of the state-owned broker's Hong Kong listing.
The sale of about 1.9 billion new shares at HK$15.62 each would represent 128 per cent of its current H shares, the company said in a filing yesterday.
The firm closed at HK$18.60 on Friday, up about 38 per cent from the start of the year.
Haitong still needs approval from shareholders to issue the new shares.
British Virgin Islands-incorporated Dawn State, controlled by the mainland's largest state-owned holding company, State Development and Investment Corp, was the biggest investor, taking shares worth HK$8.89 billion.
Haitong said 60 per cent of the proceeds would go to growing the company's "margin financing and securities lending business". According to the filing, 10 per cent would go to replenishing working capital.
In a separate regulatory filing yesterday, the broker said a change in its accounting policy would affect its operating results.
Provisions for bad debt affecting the company's gross profit would hit 170 million yuan (HK$212 million), it said.
Mainland brokerage stocks have recently been rallying amid record trading that drove up the Shanghai Composite Index.
Mainland investors are opening stock-trading accounts at the fastest pace in more than three years amid central bank efforts to bolster economic growth.
The mainland's biggest brokerages offer the best value for investors, China International Capital Corp analyst Mao Junhua said earlier this month.
Small and medium-sized firms were trading at 3.9 times book value, 80 per cent higher than the valuations for Citic Securities, the country's largest brokerage by market value, and Haitong Securities, the second-biggest, Mao wrote in a report.
Portugal's Novo Banco on December 8 sold its investment bank Banco Espirito Santo de Investimento to Haitong Securities for €379 million (HK$3.6 billion). Portugal's central bank and the European Commission will still need to approve the deal.
The deal followed several other similar transactions in the past few years where mainland financial institutions have bought out Western banks on the cheap.
Citic Securities, the mainland's largest brokerage, acquired CLSA Asia-Pacific Markets from French bank Credit Agricole for US$1.25 billion in August. China Construction Bank Corp bought Brazil's Banco Industrial e Comercial in October.
In April, Citic bought a stake in New York broker BTIG without disclosing the value or size of it.
Additional reporting by Bloomberg


Haitong Securities share sale taps market for HK$29.9b

Lin Yong, Chief Executive Officer of Haitong International Securities. Haitong will sell about HK$29.94b of new H shares in a private placement to seven investors. Photo: Paul Yeung

Lin Yong, Chief Executive Officer of Haitong International Securities. Haitong will sell about HK$29.94b of new H shares in a private placement to seven investors.

Business

Companies

Mainland broker says 60 per cent of the new funds will go to growing the company's margin financing and securities lending business


Haitong Securities will sell about HK$29.94 billion of new H shares in a private placement to seven investors, more than doubling the size of the state-owned broker's Hong Kong listing.


Haitong Securities share sale taps market for HK$29.9b

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Mainland broker says 60 per cent of the new funds will go to growing the company's margin financing and securities lending business

Mainland broker says 60 per cent of the new funds will go to growing the company's margin financing and securities lending business