(Yicai Global) May 30 -- There is nothing to say at the moment, a senior executive at Chinese brokerage GF Securities told Yicai Global regarding the reported purchase of equity in Hong Kong asset management company Value Partners Group.

Major shareholders in Value Partners, including founder Xie Qinghai, are preparing to sell as much as 30 percent of the firm’s equity, the asset manager said yesterday.

It is reported that GF Securities plans to buy a 20 percent stake in Value Partners, it added. Although discussions are ongoing, no commitments have been made.

69-year-old Xie may be planning to retire and therefore might want to sell his equity in the firm, company insiders said.

In order for mainland brokerages to expand their asset management business abroad, the acquisition of overseas fund managers is the quickest way. Value Partners has offices in Beijing, Shanghai, Shenzhen, Kuala Lumpur, Singapore and London.

Value Partners, which was the first asset manager to go public in Hong Kong in 2007, suffered losses of HKD544 million (USD69.5 million) in 2022, the first losses since it was established in 1993, due to poor investments.

GF Securities’ asset management business consists of two public funds, E Fund Management and GF Fund Management, as well as GF Asset Management. GF Asset Management had the eighth largest amount of assets under management on the mainland in the first quarter.

Value Partners’ share price [HKG:0806] closed up 0.9 percent at CNY2.24 (USD0.32) today. Earlier in the day it surged 15 percent to CNY2.67.

Editor: Kim Taylor