China Development Financial to acquire two firms in Hong Kong

Taipei, May 31 (CNA) China Development Financial Holding Co., one of Taiwan's leading financial holding companies, has agreed to acquire two financial institutions in Hong Kong in a bid to expand its reach in the greater China market. KGI Securities, a wholly-owned subsidiary of China Development Financial, will acquire TG Holborn (HK) Ltd. and Alpha Global Asset Management Ltd. for HK$8.77 million (US$1.12 million) and HK$7.59 million, respectively. China Development Financial said TG Holborn is an independent financial advisory firm, which has operated in Hong Kong for almost 20 years and is good at selling investment instruments linked to insurance policies, adding that the company has built a broad customer base. The financial holding company said as Alpha Global has secured an asset management license from local financial authorities, KGI Securities is expected to take advantage of the firm's strength to further explore investment businesses in Hong Kong. The acquisitions of the two Hong Kong financial institutions could create synergies for KGI Securities, which is gearing up to expand in the territory, China Development Financial said. In addition to Hong Kong, KGI Securities has set up a foothold in Singapore. China Development Financial said KGI Securities will use its presence in Hong Kong and Singapore to drive its growth in Asia. As part of its expansion plan, KGI Securities is expected to continue to extend its reach to Northeast Asia, Southeast Asia and even the Islamic world to become a regional asset management hub, China Development Financial said. (By Tien Yu-pin and Frances Huang)