Chinese firm now owns Thai brokerage

Chinese firm now owns Thai brokerage

CGS-CIMB Securities (Thailand) has changed its name to CGS International Securities (Thailand) (CGSI) after China Galaxy Securities acquired a 100% stake in the company in December 2023 in a move to strengthen its regional presence.

China Galaxy Securities is the second-largest securities company in China and is wholly-owned by the Chinese government. It has more than 500 branches across the country.

Patcharanon Cheevakrianggrai, chief executive of CGSI, said the name change is because the company's parent company is now the full owner. CGSI is the only Thai brokerage wholly-owned by the Chinese government.

Malaysia-based CIMB Group sold 50% of its shareholding in CGS-CIMB Securities to China Galaxy Securities in 2018. The Chinese broker purchased a 25% shareholding in the company in December 2022 and the remaining 25% stake in December 2023.

The internal structural changes do not affect the rights and operations between the brokerage and its clients, Mr Patcharanon said. Any transactions made prior to the change will be carried out under CGSI, he said.

The change should strengthen the relationship between China and Southeast Asia as CGSI will have greater connections with regional clients and investment opportunities, said Mr Patcharanon.

As for investment directions, CGSI Research has a positive view on hospital stocks listed on the Thai bourse. Foreign patients are expected to support profit growth for healthcare services this year as more travel to Thailand for treatment, improving hospitals' profit margin, said Kasem Prunratanamala, head of Thailand research at CGSI Research.

The research house projects hospital groups' revenue to grow by 10% this year and 8% in 2025. Hospital groups had foreign capital inflows of 10 billion baht in 2023 and 2 billion this year to date.

Bangkok Dusit Medical Services had the largest foreign investment inflows last year, while Bumrungrad Hospital has the highest inflows this year, he said.

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