TOKYO -- Tokai Tokyo Financial Holdings has acquired a $10 million stake in China's Guotai Junan Securities, seeking to deepen collaboration in stock trading and other services, the Japanese company said Tuesday.
Tokai Tokyo obtained a 0.43% stake in the Chinese business partner on the Hong Kong Stock Exchange. Since 2002 the companies have cooperated in brokering stock sales and on research and sales of mutual funds. Tokai Tokyo offers a Chinese-equity trading service in Japan through a subsidiary.
Explaining the timing of the investment, Tokai Tokyo said it "expects further development of the Chinese market."
Tokai Tokyo has been stepping up mergers and acquisitions. Earlier this year, it bought Osaka-based Takagi Securities.
Guotai Junan is a leading brokerage with roughly 120 billion yen ($1.09 billion) in capital and net assets of around 1.45 trillion yen as of the end of 2016.
(Nikkei)
