Southwest Securities Exec Is Unaware of Rumored Plans to Scrap Investment Bank Unit
Xu Wei
DATE:  Jan 17 2019
/ SOURCE:  yicai
Southwest Securities Exec Is Unaware of Rumored Plans to Scrap Investment Bank Unit Southwest Securities Exec Is Unaware of Rumored Plans to Scrap Investment Bank Unit

(Yicai Global) Jan. 17 -- A deputy director at Southwest Securities is unaware of any plans the company has made to abolish its entire investment banking unit, the anonymous source told National Business Daily after rumors surfaced that the company would close the division.

Reports surfaced yesterday suggesting that the Chongqing-based brokerage would shut down its investment banking arm or transfer departments from within the division due to a recession in the sector. Some employees from the division have resigned but rumors that the entire unit will shut down are an exaggeration, another company insider told Securities Times.

Southwest Securities mostly focuses on brokering securities and futures deals, asset management and investment banking. The latter department has been lagging in recent years, with revenue falling 53.3 percent to CNY569 million (USD83.7 million) in 2017. Income from commission fees was also down 13 percent at CNY344 in the first three quarters of last year, according to an earnings report.

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Keywords:   Southwest Securities