SINGAPORE, June 30 (Reuters) - Hong Kong’s Bank of East Asia Ltd (BEA) has obtained approval from China’s securities regulator to set up a joint venture in free trade zone Qianhai as it expands its reach in the world’s second largest economy.
The East Asia Qianhai Securities Company Limited will be a joint venture with BEA as the largest shareholder with a 49 percent stake, while Shenzhen Qianhai Financial Holdings Co Ltd and two other companies will own the rest, BEA said on Friday.
The venture in Qianhai, a Chinese free trade zone near Hong Kong, will have an issued capital of 1.5 billion yuan ($221 million) and will offer services in securities brokerage, underwriting, asset management and trading, BEA said.
“The establishment of East Asia Qianhai Securities expands BEA’s capital market business to mainland China, enabling the Bank to further enrich its service offering in the market,” BEA Chairman and CEO David Li said in a statement. ($1 = 6.7793 Chinese yuan renminbi) (Reporting by Lee Chyen Yee; Editing by Keith Weir)