Tags: China | commodities | trading | desk

Chinese Broker Buys Natixis Commodities Unit

Monday, 05 Aug 2013 11:29 AM

One of China's top securities brokers has bought parts of the commodities trading unit of French bank Natixis in the latest move by Chinese institutions to expand into natural resources markets.

Western banks that trade raw materials face increased regulatory and political pressure, with some market leaders such as JPMorgan considering selling, spinning off or clinching strategic partnerships for their commodities desks.

A Natixis spokeswoman said China's Shenzhen-listed GF Securities had bought Natixis' London-based commodities brokerage unit. She added the deal did not include some client-based commodities trading activities at Natixis, which will continue.

A statement posted on the Shenzhen stock exchange website said GF Securities' wholly-owned subsidiary, Hong-Kong GF Futures, acquired UK's Natixis Commodity Markets Limited for $36.1 million.

Chinese companies have long been expanding into commodities trading amid booming demand for resources at home. Chinese oil firms have amassed powerful trading desks in Europe and the United States.

But while China's massive demand for resources, fueled by its rapid industrialization, has underpinned worldwide markets for everything from oil to iron ore, Chinese banks have been relatively slow to embrace commodities trading.

Last week, sources told Reuters that South Africa's Standard Bank is in talks to sell its London commodity trading business to its biggest shareholder, Industrial and Commercial Bank of China.

Last year, Bank of China Ltd became the first Chinese member of the London Metal Exchange.

Natixis has a midsized commodities trading desk employing several dozens of people with a focus on metals and energy.

© 2017 Thomson/Reuters. All rights reserved.

   
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One of China's top securities brokers has bought parts of the commodities trading unit of French bank Natixis in the latest move by Chinese institutions to expand into natural resources markets.
China,commodities,trading,desk
248
2013-29-05
Monday, 05 Aug 2013 11:29 AM
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