Tianjin Teda ups its investment in Bohai Securities

Jul. 9, 2007 (China Knowledge) – Tianjin Teda Co. Ltd <000652> plans to increase its investment in Bohai Securities up to RMB 818.8 milion, which will account for 27.51% stake in Bohai Securities. The company is still the largest shareholder of Bohai Securities.

Headquartered in Tianjin, Bohai Securities has a registered capital of RMB 2.22 billion and 31 business outlets across the country. As of the end of this first quarter, the total assets of Bohai Securities reached RMB 9.24 billion and net assets of RMB 1.4 billion with operating revenue of RMB 369 million and prfits up to RMB 231 million. The operating revenue and profits in 2006 reached RMB 557 million and RMB 194 million respectively.

Bohai Securities intends to raise RMB 750 million through the sale. This capital raising is also estimated to rank Bohai Securities among the first-tier securities firms in terms of net capital.

This is the second time for Tianjin Teda to up its investment in Bohai Securities. As early as in August 2006, Tianjin Teda spent RMB 600 million to buy shares of Bohai Securities. The registered capital of securities firms increased from RMB 927 million to RMB 2.22 billion and Tianjin Teda became the largest shareholder after this shares purchase.