BEIJING Nov 8 China Fortune Securities, a
partner in a securities joint venture with Morgan Stanley
, is set for a listing in the mainland China market
through an asset injection into property developer Shanghai
China Fortune Co.
China Fortune Securities holds a 66.67 percent stake in
Morgan Stanley Huaxin Securities, with Morgan Stanley owning the
In a filing late on Monday, Shanghai China Fortune said it
is to acquire a 92 percent stake in China Fortune Securities
from three shareholders in the brokerage via an asset swap and
issuance of shares for a total value of 4.93 billion yuan ($727
The brokerage and the property developer are both indirectly
linked to Shanghai's state-owned Assets Supervision Commission,
which represents the municipal government.
Shanghai China Fortune also said it would raise 1.27 billion
yuan in a private placement to three institutional investors to
boost its capital.
The listed company will quit real estate development to
focus on developing its securities businesses. The company plans
to use 800 million yuan of the proceeds from the share issuance
to expand China Fortune Securities' stock market businesses,
including margin trading and short selling, according to the
The rest will be used to expand its proprietary trading and
asset management units, it said.
China Fortune Securities earned 2.2 billion yuan in revenue
in 2015, according to the filing. Its total assets were worth
17.7 billion yuan.
Guotai Junan Securities is the financial adviser for the
($1 = 6.7789 Chinese yuan renminbi)
(Reporting by Shu Zhang and Matthew Miller; Editing by Kenneth