Yuanta Core Pacific Securities is looking to form strategic alliances with foreign partners via accumulating shareholdings in a bid to evolve from the largest broker in Taiwan into the largest broker in Asia's Chinese community. Yuanta's overseas investments are mainly made through its affiliate, Kim Eng Holdings Limited, with the aim of expanding its business coverage from Southeast Asia to Europe and America.
By the end of 2003, Yuanta held 27.8% of Kim Eng's shares, making it the single largest shareholder. Kim Eng's market share in Singapore is around 12%, ranking second among its competitors. Yuanta's association with Kim Eng is enabling it to expand its business through Kim Eng's international network that |
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spans Singapore, Hong Kong, Thailand, Indonesia, the Philippines, New York and London, covering all time zones in the world. As of Dec 31, 2003, Kim Eng had a capital of SG$151.4 million and a book value of SG$726.5 million. Kim Eng Securities Thailand Public Co., Limited, the largest brokerage house in Thailand, was a wholly owned subsidiary of Kim Eng Holdings Limited with a market share of 12.68%. It was listed in Thailand on Dec 3, 2003 while ownership after the IPO was diluted to 71%. Both Yuanta Core Pacific and Kim Eng Holdings posted excellent returns, and have received numerous awards for their outstanding performance; Yuanta was named the "top local Asian brokerage house in Taiwan" by Asiamoney and Asset Magazine, while Kim Eng was named the "top local Asian brokerage house by region" by The Asset Magazine.
To increase its presence in China, Yuanta has set up representative offices in both Shanghai and Beijing, and is scouting for potential partners in preparation for the government's relaxation of bans on mainland-bound investment in the securities industry.
Currently Yuanta offers securities brokerage for investment in overseas market such as Hong Kong, Singapore, Thailand, Japan and the US. The company will expand its services to cover more foreign stock markets in the future. Also, Yuanta has already established a platform for dealing in overseas mutual funds in order to better serve local investors. Besides Southeastern Asia, Europe and America, Yuanta has been actively seeking possible alliance opportunities in Japan, and emerging markets such as Korea and India.
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