Chinese Brokerage CGS Expands Investment Banking in Southeast Asia

20 Jul, 2024

Chinese Brokerage CGS Expands Investment Banking in Southeast Asia

China Galaxy Securities (CGS), a state-owned brokerage, plans to expand its investment banking team in Southeast Asia from 30 to 50 members by next year. This expansion aims to capitalize on increased dealmaking in the region amid a sluggish market in China. CGS International Securities, the Singapore-headquartered unit of CGS, has obtained investment banking business licenses in Indonesia, Malaysia, Singapore, and Thailand over the past 18 months.

The firm is also in the process of securing a license to manage IPOs in Malaysia. Jason Saw, the group head of investment banking, stated that the new hires will focus on building ASEAN-China relations, targeting mid-market deals valued between $149 million and $744 million. The firm is seeing growing interest from Chinese strategic investors and funds looking to diversify into Southeast Asia.

CGS International offers a full range of financial services, including wealth management and shariah-compliant financing, in over 15 countries. The firm also holds asset management licenses in Singapore, Malaysia, and Thailand. CGS International is interested in expanding into Vietnam, working with established partners for the time being. This strategic expansion comes as Chinese financial services groups seek growth opportunities outside of mainland China and Hong Kong.