WUXI, China, May 30 (Reuters) - The Royal Bank of Scotland Group Plc and its local Chinese partner launched their joint venture Huaying Securities on Monday, hoping to tap a piece of the booming investment banking business in the country.
'From today, Huaying is licensed to underwrite and sponsor stocks and bonds issued in mainland China, tapping China's huge and growing investment banking market,' they said in a statement ahead of a launch ceremony in the eastern city of Wuxi, not far from Shanghai.
Foreign players are rushing to get into the lucrative underwriting business in China.
In January, the securities regulator approved the joint ventures of J.P. Morgan Chase & Co and Morgan Stanley , enabling the two to underwrite stocks and bonds in the country.
The year 2010 was slow in terms of IPO deals for Western banks in China even after the country became the world's top IPO market after Chinese companies raised a record $70 billion in proceeds, according to Thomson Reuters data.
Smaller Chinese investment banks, such as Shenzhen-based Ping An Securities and Guosen Securities, dominated China's IPO market in 2010 after the launch of the country's Nasdaq-style Chinext market spurred a wave of IPOs by small- and medium-sized companies.
RBS will hold a one-third stake in the JV, in line with China's limit on the amount a foreign company may hold in a brokerage joint venture.
(Reporting by Samuel Shen and Kazunori Takada; Editing by Jason Subler) Keywords: RBS/CHINA (kazunori.takada@thomsonreuters.com)(+86-21-6104-1799)(Reuters Messaging: kazunori.takada.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
'From today, Huaying is licensed to underwrite and sponsor stocks and bonds issued in mainland China, tapping China's huge and growing investment banking market,' they said in a statement ahead of a launch ceremony in the eastern city of Wuxi, not far from Shanghai.
Foreign players are rushing to get into the lucrative underwriting business in China.
In January, the securities regulator approved the joint ventures of J.P. Morgan Chase & Co and Morgan Stanley , enabling the two to underwrite stocks and bonds in the country.
The year 2010 was slow in terms of IPO deals for Western banks in China even after the country became the world's top IPO market after Chinese companies raised a record $70 billion in proceeds, according to Thomson Reuters data.
Smaller Chinese investment banks, such as Shenzhen-based Ping An Securities and Guosen Securities, dominated China's IPO market in 2010 after the launch of the country's Nasdaq-style Chinext market spurred a wave of IPOs by small- and medium-sized companies.
RBS will hold a one-third stake in the JV, in line with China's limit on the amount a foreign company may hold in a brokerage joint venture.
(Reporting by Samuel Shen and Kazunori Takada; Editing by Jason Subler) Keywords: RBS/CHINA (kazunori.takada@thomsonreuters.com)(+86-21-6104-1799)(Reuters Messaging: kazunori.takada.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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