Another Foreign Invested PRC Securities Company
January 27th, 2005The Wall Street Journal reports here that “Merrill Lynch & Co. is expected to announce today that it has agreed to form a joint venture with China’s Huaan Securities Co., according to people familiar with the situation. The deal would give New York-based Merrill access to the securities-underwriting business in China. Merrill would acquire a 33% stake in the joint venture for an undisclosed sum.”
March 3rd, 2005 at 11:56 pm
It’s interesting that almost all of the local partners chosen by the U.S. securities firms are firms headquartered outside major financial centers, such as Shanghai, Shengzhen and Beijing. Any reasons for that, professor?
March 4th, 2005 at 12:34 am
First, a major PRC sec co would not need the foreign partner as much and would be disadvantaged in some ways from having one–with a foreign partner, they wouldn’t be able to conduct a domestic IPO themselves, which many would like to do.