Chinese service provider Puhui Wealth Investment Management has acquired Hong Kong-based Granville Financial Services, as reported by sister publication International Adviser.
The deal is part of Puhui’s strategy to expand its wealth and asset management services to outside of mainland China.
Puhui has agreed to purchase 13,000,000 (100%) shares of Granville for HK$29.4m ($3.8m).
Granville offers services in securities, futures and asset management.
Headquartered in Beijing, Puhui was founded in 2013 and focuses on wealth management products for individuals and corporate clients. Meanwhile, its asset management business in China currently managers around $23.5m in assets.
Significant role
Ji Zhe, chairman and chief executive of Puhui, said: “We are now well-positioned to take advantage of financial qualifications and licenses that allow us to provide our services in China and Hong Kong, with the prospect of seeking additional licenses globally.
“This acquisition will play a significant role in assisting the company’s business development activities in Hong Kong, broadening and enhancing our existing product portfolio, and providing valuable international experience to our team.
“We will continue to evaluate other business and growth opportunities as they arise.”
Puhui Wealth joins other Chinese firms that have expanded outside of China.
In September, Tang Wealth International received relevant licences in Hong Kong, as reported by FSA. Its parent, Beijing-based Tang Wealth, manages around $66bn in assets and provides wealth management consulting services to 33,000 families in China.
In July, Tongfang Wealth Management was granted three SFC licences in Hong Kong. Its parent, Beijing-based Tsinghua Tongfang, owns multiple “industrial clusters” which manufacture consumer electronics, such as LCD televisions and internet-related products and also engages in the incubation of technology firms in China.
In April, Guangzhou-based Hefeng Family Office obtained Type 9 and Type 4 licences.
Shanghai-based wealth manager Hywin, a product selector and distributor with branch offices in China, also partnered with the Singapore arm of Liechtenstein-based VP Bank to set up a Hong Kong-based collaboration platform. Both firms will be targeting both offshore and onshore ultra-high net worth Chinese investors.
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