CIMB Group has received Bank Negara Malaysia's (BNM) approval to incorporate a Malaysia-based Joint Venture company (Malaysia JVCo) as the holding company of Jupiter Securities Sdn Bhd (Jupiter Securities), the platform that will be used for the Malaysia stockbroking business of CIMB and China Galaxy Securities Co. Ltd ("China Galaxy" or “CGS”).
CIMB and China Galaxy will own a 50:50 stake in Malaysia JVCo, through their respective wholly-owned subsidiaries CIMB Group Sdn Bhd and China Galaxy International Financial Holdings Limited. CIMB Group’s Malaysia stockbroking business comprises institutional and retail brokerage, share margin financing for broking clients, equity financing services and equities research, as well as exchange listed derivative broking under CIMB Futures Sdn Bhd.
Tengku Datuk SeriZafrul Aziz, Group CEO of CIMB Group said, “We are extremely pleased to have received regulatory approvals to enable us to place the final piece - our Malaysia stockbroking business - in the CGS-CIMB regional securities partnership. We look forward to harnessing the benefits of shared expertise, digital innovation and market access to raise the game for Malaysia's stockbroking industry.”
“Additionally, the Pan-Asian CGS-CIMB partnership will also enable us to scale up and reap even more opportunities, especially digitally, in the stockbroking industry in both ASEAN and China. I am confident this partnership will offer better solutions, greater market access and a differentiated value proposition to existing and future clients of the joint venture as well as to both China Galaxy and CIMB.”
This BNM approval is in relation to the second of the two-part joint venture partnership with China Galaxy. The first part, which relates to CIMB’s stockbroking business outside Malaysia, was completed on 18 January 2018.