Top Chinese Broker Launches Malaysian Equity Fund with Warrants Exposure

Written by Editor

Huatai Financial Holdings (HK) Limited, a wholly owned subsidiary of Huatai Securities Co Ltd (SHA:601688), is launching a Malaysia equity fund,  Huatai Von Malaysia Fund Segregated Portfolio with Von Capital Limited.  This Cayman Islands domiciled-fund is a sub-fund of Huatai HK Select Investment Fund Series.  Malaysian warrants specialist Alan Voon is the co-chairman of Huatai Von Malaysia Fund.  Mr. Voon is also the President/CEO of Von Capital, a company registered with the New Zealand Companies Office Financial Service Providers Register (FSP No. 161784). 



Huatai Von Malaysia Fund would be the first Malaysian equity fund with a significant warrants exposure.  According to the fund’s term sheet, the investment objective of Huatai Von Malaysia Fund is to seek capital appreciation through a diversified portfolio of short to long-term investment in securities with high growth prospect. The Investment Manager intends to achieve this objective through investing primarily in stocks, convertible securities and warrants of companies with a Malaysian theme.  Nevertheless, not more than 30 per cent of the latest available Net Asset Value of the Fund will be invested in warrants and options with an expiry period of less than two years, except for hedging.


Stephen Wong, Huatai Financial Holdings (HK) Ltd’s director and head of investment, told The Edge in a recent interview that Huatai Von Malaysia Fund, has a targeted fund size of US$500 million (RM1.6 billion) and will be launched in mid-November. It targets high net-worth individuals in China and Hong Kong, with a minimum subscription of US$100,000.


Huatai Securities announced in September 2011 that it had won approval to integrate its business with that of its subsidiary, Huatai United, and will replace Galaxy Securities as the largest domestic securities brokerage in China following the restructuring, reports Oriental Morning Post, citing a company filing. 

Huatai Securities' investment banking business will be injected into its subsidiary, while the securities brokerage business of the subsidiary will be consolidated into Huatai Securities.  The integration was originally planned in 2009 in order solve the problem of horizontal competition.  Galaxy Securities had a 5.142 percent share of the domestic securities brokerage market in 2010.  Huatai Securities and Huatai United were ranked eighth and fifteenth, respectively.

According toHuatai Securities’ interim report, it completed six initial public offering underwritings in the first half, totaling 4.69 billion yuan, while Huatai United underwrote five offerings worth a total of 3.47 billion yuan.


Besides Huatai Von Malaysia Fund, Von Capital is also working with Huatai in developing stocks and indices options products in the future.