SHK Financial looks to Qianhai for growth
Brokerage firm hopes to repeat Hong Kong success amid headwinds from increased regulatory measures and tighter credit environment
Sun Hung Kai Financial, one of the oldest brokerage firms in the city, is pinning its hopes for growth on its establishment of a presence in Qianhai, as it contends with headwinds from increased regulatory measures amid a tight credit environment.
"Qianhai is our first step into the mainland," chief executive William Leung Wing-cheung said. "If we can repeat what we have done in Hong Kong in some cities on the mainland, our revenue can grow [sharply]."
The company signed a letter of intent to participate in Qianhai with a mainland developer in 2012.
Financial institutions in Hong Kong are all seeking a foothold in the Qianhai economic zone in Shenzhen. The zone was set up in July 2012 as a testing ground for the free flow of yuan and other policies to encourage overseas investment.
IPO sponsorship business is not a major revenue source ... we could give [it] up
The proposal by Guangdong authorities to set up a free-trade zone, which will cover Hong Kong, Macau, Qianhai, Hengqin in Zhuhai, and Nansha in Guangzhou, was greeted with mild surprise by Sun Hung Kai Financial since it already has a presence in Hong Kong and Macau.