HONG KONG, Nov. 19, 2012/PRNewswire/ --- China Renaissance Securities (Hong Kong) Limited has been approved as a broker-dealer by the Hong Kong Securities & Futures Commission (SFC) for types 1, 4 and 6 activities, effective 24th Oct. CR Securities, which was founded on June 6th, 2012, is a subsidiary of China Renaissance Partners (CRP). They recently acquired licenses enable CRP to engage in securities related underwriting and M&A activities.
As a result, CRP has successfully expanded from its original business, which mainly consisted of private fund-raisings and M&A, to underwriting IPOs and Follow-ons for the Hong Kong market, marketing block trades, conducting equity research for fund investors and advising on public company M&A transactions.
This also makes CRP the first Chinese privately-owned independent investment bank which has successfully transformed from a Boutique Investment Bank into a Full Service Investment Bank, symbolizing a milestone for both CRP itself and the Chinese start-up industry.
CRP, founded in 2004, was an outgrowth of Silicon Valley’s trend of venture capital investing. CRP has provided a wide range of financial services specializing in TMT, education, and healthcare for more than 200 start-up clients including 360Buy.com, Dangdang, Renren, NQ Mobile, China Auto Rental, and Dianping. CRP is commonly regarded as the #1 private placement advisor to Chinese entrepreneurs and has successfully closed over US$6 billion worth of transactions since inception.
Even with these outstanding achievements, China Renaissance, like most other Chinese Boutique Investment Banks, was unable to expand into the IPO business due to financial regulatory policy in Mainland China and the lack of overseas broker-dealer licenses. Thus the approval of HK broker-dealer licenses provides additional opportunities for CRP. In compliance with the New 36 Articles, regulators have rolled out a series of new regulations to encourage private investment into the financial services sector.
With a series of new regulatory changes, China’s financial market is expected to enter into a transformational phase. Additionally, the return of investment flow to China and the rise of Yuan denominated funds will continue to drive appetite for Chinese companies. Bao Fan, founder and CEO of CRP, said “As one of the leading domestic full-service investment banks, China Renaissance has a responsibility to assist domestic start-ups to grow in all stages of its life cycle and help them to navigate the financial world both domestically and abroad.” Bao Fan also expects CRP to experience substantial growth and play a larger role in China’s financial market in the coming years.
