Tag Archives: Essence Securities

FINANCE – HK-Shanghai Link Could Spark Brokerage Tie-Ups

Bottom line: The latest M&A in China’s brokerage sector involving Essence Securities could presage a new wave of tie-ups between Chinese and foreign brokerages, boosted by the Hong Kong-Shanghai stock exchange link.

Essence joins brokerage consolidation trend

A new reverse takeover involving a major Chinese brokerage is shining a spotlight on the potential for new deals in the sector following this week’s launch of a ground-breaking program linking the Hong Kong and Shanghai stock exchanges. This particular deal involves Essence Securities, which is becoming a publicly traded company following its purchase by Shanghai-listed textile firm Sinotex Investment (Shanghai: 600061). But more intriguing is the very real possibility that major foreign brokerages may start to look for tie-up opportunities with Chinese peers in anticipation of synergistic partnerships to take advantage of the new Hong Kong-Shanghai Connect program. Read Full Post…