TheStar
KUALA LUMPUR: CIMB Investment Bank Bhd and Daewoo Securities Co Ltd plan to launch a retail fund in South Korea in the second quarter for Korean investors interested in the Malaysian equities market.
CIMB group chief executive Datuk Nazir Razak said CIMB and Daewoo Securities were in the midst of setting up the fund. Details on the fund are not immediately available.
“We'll immediately start channelling brokerage activities from those parts of the world in which we have a presence and market sukuk opportunities to the Koreans,” he said.
He was speaking to reporters yesterday after CIMB and Daewoo Securities signed an agreement to collaborate in investment banking activities as well as capitalise on each other's expertise in the respective markets via market access, knowledge, research and brokerage services.
The alliance also covers the co-development of funds for distribution in each other's market as well as preferred partnerships in all investment banking deals involving their respective clients.
Nazir said besides bringing access to Bursa Malaysia and other South-East Asian bourses through CIMB and the group's international investment banking arm CIMB-GK, the bank would be able to leverage on its strong presence in Islamic finance where there was growing interest among South Korean companies.
He said the alliance would bring a lot of opportunities for investors in both countries as it was not limited to just Malaysia and South Korea but also included other countries where both firms had a presence.
“When Daewoo Securities set up partnerships in Brazil and China, South Korean investments were ramped up in these countries, so this is an opportunity for us to take advantage of the alliance. In fact, the working and negotiation teams from both firms were told to discuss about collaboration in third countries, too,” Nazir said.
Meanwhile, Daewoo Securities president and chief executive officer Sung Tae Kim said China had been the preferred investment destination of South Koreans for several years.
“We want to diversify. That's why we set up a Brazilian fund and have a stake in an online brokerage service in Indonesia,” he said, adding that the company had also signed a memorandum of understanding with Vietnam's largest brokerage.
Kim said the alliance would lead to cooperation in creating opportunities, as Daewoo Securities was the market leader in South Korea for cross-border listings as well as brokerage services.
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