China Bank Group Sets Up Stock Brokerage, Securitization Company

Makati—(PHStocks)—China Bank Capital Corp. (CBCC), the investment house of China Banking Corp. (PSE: CHIB), will establish a stock brokerage house and a special purpose corporation.

The stock brokerage house shall be named China Bank Securities Corporation. As a wholly owned subsidiary, it will enable China Bank Capital to do Initial Public Offerings (IPOs) and list these IPO shares in the PSE. China Bank Group’s clients will also stand to benefit as they will have access to the stock brokerage service for their equities-related transactions. China Bank Capital is looking to acquire and rebrand an existing stock brokerage.

The special purpose corporation to be known as CBC Assets One (SPC) Inc., will be utilized as a vehicle to hold the assets for the securitization transactions of China Bank Capital. Early this year, China Bank Capital was mandated by listed property developer 8990 Holdings Inc. (stock symbol HOUSE) to be the Arranger and Lead Underwriter for the P5 billion securitization of contract to sell (CTS) receivables of its various subsidiaries – which when completed will be the largest securitization transaction in the country. The receivables will be purchased by CBC Assets One (SPC) Inc., and repackaged into fixed-income securities. This is an innovative approach by China Bank Capital to address the financing requirements of the low cost housing industry.

China Bank has been a significant presence in the investment banking and capital markets space in the last three years, and has been recognized by the Philippine Dealing System as the top corporate issue manager in the bank category for 2015, besting three foreign banks. The addition of these two new subsidiaries to China Bank Capital’s portfolio will round out its offerings and help improve its capabilities on the capital origination side.