Chinese state-owned brokerage to ramp up investment banking business in Southeast Asia

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SINGAPORE: A unit of state-owned brokerage China Galaxy Securities (CGS) plans to expand its investment banking team in Southeast Asia to 50 people next year from 30 now, a senior executive said, betting on a rise in dealmaking in the region amid a sluggish market at home.

Staff members wearing face masks are seen at a booth of China Galaxy Securities at the 2020 China International Fair for Trade in Services in Beijing, China, on Sep 5, 2020. SINGAPORE: A unit of state-owned brokerage China Galaxy Securities plans to expand its investment banking team in Southeast Asia to 50 people next year from 30 now, a senior executive said, betting on a rise in dealmaking in the region amid a sluggish market at home.

"The new people that we are onboarding are actually more to build our ASEAN-China relation to cater to Chinese enterprises to go into Southeast Asia," he added. Weaker capital markets and dealmaking activities in mainland China and Hong Kong due to a slowing Chinese economy and rising geopolitical tensions have prompted some Chinese financial services groups to expand into Southeast Asia.

China's outbound investments into Southeast Asian nations, on the other hand, rose 27 per cent in 2023 from a year earlier, according to a report from the Griffith University, with Indonesia being the top recipient.

 

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