China Bank to set up stock trading business

The investment arm of China Banking Corp., China Bank Capital Corp. (CBCC), is opening a stock brokerage and aa special purpose comany.

"We are initially putting in minimum regulatory requirements of P100 million for the brokerage and P5 million for the special purpose company," Alexander Escucha, SVP and head of China Bank's Investor & Corporate Relations Group, said in a text message to GMA News Online.

In a disclosure to the Philippine Stock Exchange on Thursday, China Bank said the brokerage will be named China Bank Securities Corp.

To make it happen, the bank intends to buy and an existing stock brokerage firm.

Escucha noted China Bank is still scouting for the potential acquisition.

"As a wholly owned subsidiary, it will enable China Bank Capital to do initial public offerings (IPOs) and list these IPO shares on the PSE," the bank said.

China Bank will also to set-up a special purpose company to be known as CBC Assets One Inc.

"It will be utilized as a vehicle to hold assets for the securitization transactions of China Bank Capital," the bank said.

Early this year, property developer 8990 Holdings Inc. hired CBCC as arranger and lead underwriter for a P5-billion transaction to sell the receivables of its various subsidiaries.

This would be the largest securitization transaction in the country once completed.

"The receivables will be purchased by CBC Assets One, and repackaged into fixed-income securities," China Bank said. – VDS, GMA News