Securities



Certain subsidiaries of the Company are corporations licensed by the Securities and Futures Commission in Hong Kong to carry out regulated activities under Type 1 (dealing in securities), 2 (dealing in futures contracts) and 6 (advising on corporate finance) under the Securities and Futures Ordinance.

They are mainly involved in securities and futures brokerage services and dealing in securities, and provide quality securities and futures brokerage services to local and oversea investors and institutions as well as placing, underwriting and margin financing services.

At the end of 2015, a subsidiary of the Company entered into a promoters’ agreement with other 13 co-promoters, pursuant to which the parties thereto conditionally agreed to set-up Shengang Securities Co., Ltd. (“Shengang Securities”). Shengang Securities is incorporated in Shanghai Pilot Free Trade Zone with a registered capital of RMB 3.5 billion, and is the first full-licensed securities company set up under the framework of the Closer Economic Partnership Arrangement between Mainland China and Hong Kong (“CEPA”). The investment in Shengang Securities amounted to a total of RMB525 million, which makes the subsidiary of the Company one of the two single largest shareholders of Shengang Securities. Shengang Securities will serve as a business platform to form an integral part of the Group in expanding the correlative business between the Mainland and Hong Kong.