KUALA LUMPUR, June 30 (Bernama) -- CGS-CIMB Securities Sdn Bhd (CGS-CIMB Malaysia), the Malaysian stockbroking joint venture between CIMB Group Holdings Bhd (CIMB) and China Galaxy International Financial Holdings Ltd (CGI), a wholly-owned subsidiary of China Galaxy Securities Co. Ltd (CGS), will officially commence operations on July 1, 2019.
CIMB and CGS each owns a 50 per cent stake in CGS-CIMB Malaysia, whose stockbroking business comprises institutional and retail brokerage, share margin financing for broking clients, equity financing services and equities research, as well as exchange listed derivative broking via its wholly-owned CGS-CIMB Futures Sdn Bhd, said a joint media statement issued today.
CIMB and CGS are already partners in CGS-CIMB Securities International, which is the platform operating stockbroking businesses in the region.
"We are pleased to complete the inclusion of CIMB’s Malaysia stockbroking business into the partnership with China Galaxy. The platform will be able to leverage on shared expertise, digital innovation and wider market access to offer better solutions for customers. Through CGS-CIMB Malaysia, we expect to raise the game for the country’s stockbroking industry.
"The CGS-CIMB partnership is also a pivotal step to enhance investment and capital flows between ASEAN and China. I am confident this partnership will result in a differentiated value proposition for existing and future clients of CGS-CIMB, as well as CGS and CIMB separately,” said chief executive officer (CEO) of Group Wholesale Banking, CIMB Group Shahnaz Jammal.
Meanwhile, CEO of CGI Derrick Lau said the successful completion of the joint venture with CIMB in Malaysia will cement their overall stockbroking joint venture collaboration with CIMB.
"The completion of the CGS-CIMB Malaysia will fortify and better position our entire pan-Asia joint venture platform as the stockbroker of choice in Asia to ride on the increasing trend of cross-border investments under China’s Belt and Road Initiative. We are confident that together with CIMB and the entire team at CGS-CIMB Malaysia, by sharing the same vision and goals going forward, we will continue to scale new heights in the Asian stockbroking industry," said Lau.
CEO of CGS-CIMB Malaysia Ruzi Rani Ajith said: "The entry of CGS as a new shareholder as well as CGS-CIMB Securities International’s established platform, research capabilities and regional footprint will provide substantial synergies to support CGS-CIMB Malaysia in fulfilling our clients’ investment objectives as well as in connecting them with various opportunities in Asia.
"Access to sophisticated tools and technology will also help us create innovative products to serve a wider range of investors. Moving forward, CGS-CIMB Malaysia will focus on expanding our Islamic services and retail offerings for investors with a Shariah mandate.”
CGS-CIMB has over 40 years of cumulative stockbroking expertise and is one of the pioneer stockbrokers in Southeast Asia.
Its businesses include retail broking, institutional equities, derivatives, prime services, equities research, wealth management and online broking, and is backed by an award-winning research team comprising more than 70 analysts covering over 800 companies across the Asia Pacific (ex-Japan) market.
Across the region, CGS-CIMB is already a dominant player in the retail broking industry with 70 branches and over 850 distribution posts, and is ranked in the top three by market share for broking houses in Malaysia, Indonesia and Singapore.
CGS-CIMB Malaysia is one of the top securities firms in the Malaysian market with year-to-date traded value of RM65.1billion as at 31 May, 2019. Supported by a workforce of over 600 staff, including remisiers, and 29 branches nationwide, the business serves over 200,000 individual, corporate and institutional clients.