UBS Securities Co. announced on Monday that it will buy a controlling stake in a Shanghai futures brokerage as it looks to tap into the country's massive futures market.
UBS Securities, owned by UBS AG and several other Chinese firms, said it will hold a 95.42-percent stake in Shanghai Pumin Futures Brokerage Co., Ltd., injecting 90 million yuan ($14.7 million) into the company.
Both the acquisition and capital injection have received regulatory approval, it said.
David Li, chairman of UBS Securities, said there is huge growth potential in the futures brokerage business and they are looking forward to entering the market.
The third plenary session of the 18th CPC Central Committee encouraged financial innovation and more futures products are likely to be rolled out, Li said.
Yang Xia, head of equities of UBS Securities, said that the company is committed to offering comprehensive services in the secondary market and to realize the goal, they hope to offer futures brokerage services to clients.
China's financial futures market has seen robust growth since the country's first financial futures product, Hushen 300 index, was launched in April 2010.
Financial futures transactions more than tripled to 141 trillion yuan last year, accounting for 52.7 percent of the country's total futures market, official data showed.
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