China’s Pacific Securities Drops After Denying Speculation of Takeover by JD.Com

Zhang Yushuo

DATE: Apr 09 2021

/ SOURCE: Yicai

(Yicai Global) April 9 -- Shares of Pacific Securities, one of only two listed Chinese brokerages to lose money last year, fell after it denied having had any contact with e-commerce giant JD.Com over a potential buyout.

Pacific Securities [SHA:601099] ended 3.2 percent down today at CNY3.58 (55 US cents, after earlier plunging as much as 8.1 percent.

Shares of the Kunming-basedfirm soared 7.9 percent yesterday after market rumors of a takeover by JD.Com and 6.2 percent the day before that on speculation that China Resources Holdings may buy it.

Pacific Securities confirmed in a statement today that it had been in contact with China Resources, a state-owned conglomerate. The talks are at a preliminary stage, it added.

The firm had a net loss of between CNY650 million and CNY750 million (USD99.1 million and USD114.4 million) in the 12 months ended Dec. 31, according to its preliminary earnings report.

In 2019, its largest shareholder, Beijing Jiayu Investment, announced a plan to sell 5.87 percent of its stake to Huachuang Securities for CNY2.2 billion (USD335.7 million), but the deal fell through last June. Jiayu owns 10.92 percent of Pacific Securities, according to last year’s third-quarter income report.

Editor: Tom Litting

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Keywords: Pacific securities, acquisition, JD. Category: business (Yicai Global) April 9 -- Shares of Pacific Securities, one of only two listed Chinese brokerages to lose money last year, fell after it denied having had any contact with e-commerce giant JD.Com over a potential buyout. Pacific Securities [SHA:601099] ended 3.2 percent down today at CNY3.58 (55 US cents, after earlier plunging as much as 8.1 percent. Shares of the Kunming-based firm soared 7.9 percent yesterday after market rumors of a takeover by JD.Com and 6.2 percent the day before that on speculation that China Resources Holdings may buy it. Pacific Securities confirmed in a statement today that it had been in contact with China Resources, a state-owned conglomerate. The talks are at a preliminary stage, it added. The firm had a net loss of between CNY650 million and CNY750 million (USD99.1 million and USD114.4 million) in the 12 months ended Dec. 31, according to its preliminary earnings report. In 2019, its largest shareholder, Beijing Jiayu Investment, announced a plan to sell 5.87 percent of its stake to Huachuang Securities for CNY2.2 billion (USD335.7 million), but the deal fell through last June. Jiayu owns 10.92 percent of Pacific Securities, according to last year’s third-quarter income report. Editor: Tom Litting,Pacific securities, acquisition, JD. Category: business (Yicai Global) April 9 -- Shares of Pacific Securities, one of only two listed Chinese brokerages to lose money last year, fell after it denied having had any contact with e-commerce giant JD.Com over a potential buyout. Pacific Securities [SHA:601099] ended 3.2 percent down today at CNY3.58 (55 US cents, after earlier plunging as much as 8.1 percent. Shares of the Kunming-based firm soared 7.9 percent yesterday after market rumors of a takeover by JD.Com and 6.2 percent the day before that on speculation that China Resources Holdings may buy it. Pacific Securities confirmed in a statement today that it had been in contact with China Resources, a state-owned conglomerate. The talks are at a preliminary stage, it added. The firm had a net loss of between CNY650 million and CNY750 million (USD99.1 million and USD114.4 million) in the 12 months ended Dec. 31, according to its preliminary earnings report. In 2019, its largest shareholder, Beijing Jiayu Investment, announced a plan to sell 5.87 percent of its stake to Huachuang Securities for CNY2.2 billion (USD335.7 million), but the deal fell through last June. Jiayu owns 10.92 percent of Pacific Securities, according to last year’s third-quarter income report. Editor: Tom Litting,acquisition,JD

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