Haitong International Securities Group (Singapore), the overseas business arm of Chinese securities company‚ Haitong Securities, was granted a capital markets services license by the Monetary Authority of Singapore in January, which will enable the company to deal in securities and trade in futures contracts.
Haitong Singapore aims to provide better access to financial products available in Singapore, Hong Kong and China, through its comprehensive platforms and expertise to corporate and institutional investors based in Southeast Asia and the Middle East.
“Singapore is a renowned financial hub with a diversified investor base and deep liquidity in capital markets,” said Lin Yong, deputy chairman and chief executive of Haitong International.
“Together with its robust regulatory environment, these factors form an important foundation for Haitong International’s global expansion strategy, and enables overseas investors’ participation in China’s growth story.”
Tapping RMB demand
Haitong believes the recent pact between Singapore and China to internationalise the Renminbi (RMB) will boost the demand for RMB-denominated products.
The company expects to gradually bring a range of RMB-denominated products, as well as other asset management and corporate finance services to investors across Southeast Asia and the Middle East in future, with Singapore as a regional hub.
“Haitong International is poised to play a unique role in supporting this demand (for RMB products) in the long run, as well as contributing to the future development of RMB markets in Singapore,” Lin added.
“Haitong International will leverage Singapore’s pool of professional talent and robust regulatory environment to further expand its overseas business.”
In October, Singapore and China entered into a pact which will enable direct currency trading between the Chinese yuan and Singapore dollar and extension of the Renminbi Qualified Foreign Institutional Investor (RQFII) programme to Singapore, with an aggregate quota of RMB50bn.
Citing recent data from the MAS, Haitong said Singapore is seen as one of the few key financial markets actively preparing itself to become a key offshore RMB trading and clearing hub.
According to MAS data, the total amount of RMB deposits in Singapore has grown 70% over a 10-month period to RMB172bn as of October 2013.
Haitong International launched the first RMB-denominated and settled public fund in Hong Kong in 2010, and became the first Mainland-funded financial institution based in Hong Kong to obtain Qualified Foreign Institutional Investor, RMB Qualified Foreign Institutional Investor, and RMB Qualified Foreign Limited Partner qualifications in 2012.
Haitong International Securities Group is a subsidiary of Haitong International Holdings, a company incorporated in Hong Kong and wholly-owned by Haitong Securities, which in turn is listed on the Shanghai Stock Exchange and the Stock Exchange of Hong Kong.
Haitong Securities provides financial services for over 4.6 million retail clients as well as over 12,000 institutional and high net worth clients with more than 240 sales offices spreading across nearly 30 provinces in the country.