International equity brokerage firms Maybank Kim Eng Group and Cathay Securities Corp. have signed a deal to utilize each other’s market presence to be able to expand their brokerage footprints overseas.
In a statement e-mailed to the media on Thursday, both companies said they signed a memorandum of understanding on Thursday to formalize their collaboration in equity brokerage.
The partnership will expand Maybank’s and Cathay’s equity brokerage reach and provide their respective clients access to new markets.
Cathay will expand to the Association of Southeast Asian Nations (Asean), where Maybank has a strong presence mostly in Malaysia, Singapore, Indonesia, Thailand, Vietnam, and the Philippines. Maybank likewise will use Cathay’s solid presence in Taiwan to expand in the island.
In a signing ceremony held at the Le Meridien Taipei, Maybank Kim Eng chief executive officer John Chong said: “We are truly honored to be collaborating with Cathay Securities; this synergistic partnership will further strengthen Maybank Kim Eng’s equity franchise by widening our reach and allowing us to offer our global clients access into key equity markets in Asia Pacific.”
“As Asean’s biggest equity franchise, Maybank Kim Eng is in a strong position to catalyze investment flows into Asean at a time when Taiwan investors are looking for Asean growth opportunities. Our clients, especially our Asean-based clients, will also benefit from the good investment opportunities in the Taiwan market,” Chong added.
Stanley Chu, Cathay chairman, said the collaboration with Maybank will give them “a wider and more diversified range of investment opportunities” as they will spread into six new markets within the region.
“I also expect both companies to be able to learn from each other’s business experience and continue to deepen business linkages, from institutional brokerage to shares underwriting and international securities business,” Chu said.
The partnership will include the sharing of resources of both companies’ sales and research team.
“This partnership holds tremendous potential and opens up huge opportunities for both Maybank Kim Eng and Cathay Securities. We will be exploring more avenues to deepen and widen our collaboration with Cathay Securities.” Chong said.
“The rise of Asean economies have created tremendous business opportunities in the Southeast Asian markets, in which Cathay Financial Holdings has strategically developed its business and branches to establish a cross-border financial service platform connecting Greater China and Southeast Asia,” Chang-Ken Lee, president of Cathay Financial Holdings, said.
“We believe this partnership does not only reinforce the institutional brokerage and international securities business for both companies, it holds a greater potential which will continue to impact the companies’ outlook positively. Cathay Securities and Maybank Kim Eng have a very good fit; we share common goals and will work together towards a common interest for mutual benefits,” he added.