First Shanghai Investments Ltd. unit First Shanghai Financial Holding Ltd. is partnering with five companies to set up a 2 billion yuan securities joint venture in China.
The proposed joint venture, Guangdong Silk Road Securities Co. Ltd., will be principally engaged in securities brokerage, underwriting and sponsor services, proprietary trading, asset management, advisory on securities, direct investment and other related businesses, according to a Dec. 29 release.
In addition to First Shanghai Financial Holding, the other joint venture partners are China Kweichow Moutai (Group) Distillery Co. Ltd., Huakang Insurance Agency Co. Ltd., Black Marble Securities Ltd., Shijiazhuang Changshan Textile Co. Ltd. and Zhuhai ZhengBang Logistics Co. Ltd.
China Kweichow Moutai will hold a 38.5% stake in Guangdong Silk Road Securities, while Huakang Insurance and Black Marble Securities will own 20% and 19% stakes, respectively. First Shanghai Financial Holding, Shijiazhuang Changshan Textile and Zhuhai ZhengBang Logistics will each hold a 7.5% stake in the company.
Guangdong Silk Road Securities will have a nine-member board of directors. China Kweichow Moutai will nominate four directors to the joint venture company's board, while each of the remaining five partners is entitled to nominate one director.
As of Dec. 29, US$1 was equivalent to 6.95 Chinese yuan.