Securities Brokerage

中文

On 8 August 2016, the Company entered into a disclosable transaction for the acquisition of Glory Creator Limited (“GCL”) and its 80% owned subsidiary, Cornerstone Securities Limited (“CSL”), collectively “GCL Group”, which is a licensed corporation to carry on business in type 1 regulated activity (dealing in securities) under the Securities and Futures Ordinance.

CSL is principally engaged in the provision of securities brokerage service for products offered by the Stock Exchange to its customers. After the completion of the acquisition which took place on 22 November 2016, the Company has started the footprint in the financial services industry. Following with the launch of Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, it is expected that the securities market in Hong Kong can benefit from these mutual market access schemes, in which more capital will flow into the securities market of Hong Kong, hence the market turnover will increase significantly. Based on the above, it is believed that the Group’s securities brokerage business would be benefited from this market trend.

Following its success in 2016, the securities trading business continues its strong business momentum in 2017, in particular, the business recorded significant growth in the number of securities trading accounts, securities trading revenue and increase in brokerage revenue and other income. In March 2017, CSL obtained the approval from the Securities and Futures Commission (“SFC”) for providing margin financing business.