Huijin to take over securities unit of CCB

Huijin, the investment arm of China's central bank, is said to take over the whole securities subsidiary China Jianyin Securities Co. from China Construction Bank, and the related equity transfer procedures are being handled, according to a report by Shanghai Securities News Tuesday.

The move is hailed as a sign of acceleration of M&A in China's securities industry.

Jianyin Securities was founded in Shenzhen on September 28, 2005 on the basis of recapitalizing the former China Southern Securities Co. The company netted profit of 1.114 billion yuan in 2008 despite bearishness of the stock market in the period, compared with 2.4 billion yuan in 2007.

After the transfer, China Jianyin Investment, the investment arm of China Construction Bank, will still control Hongyuan Securities and CICC, while Huijin will control three securities companies. The two also have minor stakes in other securities companies.

Restructuring of securities companies in China has been speeding up. It is said the restructuring of Minzhu and Jinyuan Securities also has been put on agenda, according to the Shanghai Securities News report. Other such cases include the merger of Shanghai Far East Securities into New Times Securities.

Pursuant to China's regulation on supervising securities companies, two or more securities companies under the same controller may not operate identical securities business. Jianyin's move is read to comply with the regulation.

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