Broker approved to sell bonds | |
http://www.sina.com.cn 2004/07/15 12:00 Shanghai Daily | |
Everbright Securities Co Ltd, the brokerage unit of financial conglomerate China Everbright Ltd, has won approval from the securities regulator to sell up to 760 million yuan (US$91.57 million) of corporate bonds, and in the process has become the fourth domestic broker to issue debt. The bonds, which have a maturity of five years, will be placed with institutional investors with a minimum net asset value of 20 million yuan according to the regulations, the broker said. The company did not say when the sale will begin and what the proceeds of the bonds will be used for. "It is a hard time for securities companies," said Dai Ming, an analyst at Fortune Securities Brokerage Co Ltd. "Those who have more money will hold on for a longer time and try to survive the hardship." The China Securities Regulatory Commission, the stock market regulator, wants to bail out the country's 122 brokerage firms, which are burdened with declining profit margin amid the stock market slump. China's brokers rely on the stockbroking business for more than half of their profits. The benchmark Shanghai Composite Index has slid 19.41 percent since April, rattled by the government's tighter measures to cool the overheated economy, which expanded 9.8 percent for the first quarter. Everbright Securities, the nation's eighth-biggest brokerage firm in terms of capital, posted revenue of 461 million yuan for the period ended on December 31, and ranked 12th among securities firms. Haitong Securities Co Ltd, Citic Securities Co Ltd and Great Wall Securities Co Ltd received the go-ahead from the regulator in March to sell a total of 4.23 billion yuan of bonds.
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