Published on : May 05, 2015
Haitong Securities in China is aiming to expand its international business by hiring bankers across Europe and America. The company had acquired Banco Espírito Santo de Investimento (BESI) last year and plans to increase its operation massively. According to the deputy chief executive, Hiroki Miyazato, the company wants to emerge as a leading investment bank in the global map. He mentioned that his company will follow the trend set by other leading investment banks and would focus on international activities which would generate 40-50% of the revenue. He pointed out that the BESI takeover was a platform for further acquisitions and even after the takeover, the company would generate less than one-tenth of its revenue outside China.
Though Mr Miyazato is positive about expanding the business to overseas, a number of Asian banks such as Nikko, Nomura, and Daiwa have tried expanding in the past, with limited success in the foreign shores. Haitong is the second-largest brokerage firm in China, with market capitalization worth US$42 billion. In December last year, it acquired BESI through a deal of €379 million. In the recent months, the firm has emerged as one of the several Chinese groups to gain a place in the European financial services industry. Anbang Insurance Group, and Industrial and Commercial Bank of China have been the other Chinese players to enter the European financial sector.
With the rising number of Chinese clients looking out for deals in Europe, Africa, and America, Haitong plans to build its mergers and acquisitions advisory practice in the region. The firm is also thinking to offer renminbi trading to the European investors and expand into European asset management.