Shanghai woos investment banks | Shanghai Daily

Shanghai investment Banking

Banking Investment / April 7, 2022

  • New firm to offer brokerage and asset management services
  • Giant Investment and Jiangsu YuWell to join partnership

Reorient Group Ltd., a financial services firm controlled by a private equity fund linked to billionaire Jack Ma, is forming a joint-venture to provide brokerage, investment-banking and asset management services in China.

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The partnership, which includes Giant Investment Co. and Jiangsu YuWell Technology Development Co., will invest 3 billion yuan ($457 million) in the new firm, Hong Kong-based Reorient said in a stock exchange statement. The venture, to be called Yunfeng Securities Co., will be based in Shanghai and have registered capital of 1 billion yuan. The firm will be 43 percent-owned by Reorient, which in turn is 56 percent-owned by a unit of private equity fund Yunfeng Financial Holdings Ltd.

The announcement comes as Ma is boosting his investments in the financial services industry. It is expected to become a full-licensed securities firm, allowing it to provide securities brokerage, advisory and asset management services in mainland China, the statement said. Yunfeng Financial, backed by Ma and other partners, bought control of Reorient in May.

Ma, chairman and founder of the e-commerce company Alibaba Group Holding Ltd., has a net worth of $26.5 billion, making him the second-richest Chinese, after property magnate Wang Jianlin. Ma controls Zhejiang Ant Small & Micro Financial Services Group Co., which owns Alipay, China’s biggest online payment system, and operates a bank, a money-market fund and a credit-scoring service.

Giant is controlled by Shanghai-based billionaire Shi Yuzhu.

The new venture will rely on a supplement of the Mainland and Hong Kong Closer Economic Partnership Arrangement that says Hong Kong-funded financial institutions may set up fully-licensed joint venture securities firms in specified areas with mainland China shareholders who aren’t securities companies, Reorient said in the statement.

Giant has businesses ranging from computer networks to investment and asset management firms. Jiangsu sells electronic products and materials. Reorient will contribute 430 million yuan of capital. Giant will provide 300 million yuan and Jiangsu will pay 270 million yuan, the statement said.

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