(Yicai Global) Sept. 1 -- Chinese state-owned enterprises have invested CNY4.2 billion (USD615.2 million) in Minsheng Securities as the brokerage, one of China's oldest, gears up for an initial public offering of shares.

Shanghai Pudong Investment Holdings Group, Shanghai Zhangjiang Hi-Tech Park Development and 20 other Shanghai-based SOEs acquired a 27 percent stake in Minsheng from the firm’s parent company Oceanwide Holdings, Beijing-based Oceanwide said in a statement yesterday.

Established in 1986, Minsheng Securities has more than 80 branches across the country with CNY11.5 billion (USD1.69 billion) in registered capital. It had a good first half as net profit climbed 57 percent to CNY406 million (USD59.5 million) from a year ago. Revenue rose 17 percent to CNY1.6 billion (USD234.4 million).

A diversified shareholding structure can deepen the relationship between the brokerage and state-owned asset managers while achieving complementary advantages, said Minsheng Securities Chairman Feng Henian.

The brokerage will now further accelerate its listing plan, the statement added.

After the transfer, Oceanwide’s stake will fall to 44.5 percent stake. The SOEs will hold 30.6 percent of the shares. Minsheng’s employees will own almost 2 percent. 

Minsheng Securities has also changed its registered location to Shanghai's Lujiazui financial district from Beijing. So far this year, Lujiazui has added 18 financial institutions to its total which makes up more than half of the eastern city's tally. 

Editors: Zhang Yushuo, Emmi Laine