Oct. 9 (Bloomberg) -- China Galaxy Securities Co. moved a step closer to an initial stock sale after getting a government waiver from a shareholding rule that had barred it from going public, said two people with knowledge of the matter.
The Beijing-based brokerage may seek to raise about $1 billion in Hong Kong and Shanghai, said the people, who asked not to be identified because the plan is private.
Galaxy Securities is controlled by a unit of China’s sovereign wealth fund that also owns a stake in Shenyin & Wanguo Securities Co. No single investor can control more than one brokerage, and firms like Galaxy Securities can’t go public until they meet the shareholding rule, the nation’s securities regulator said in 2008.
Central Huijin Investment Ltd., a unit of China Investment Corp., owned 79 percent of Galaxy Securities at the end of 2011, according to Huijin’s website. Huijin held a 37 percent stake in Shenyin & Wanguo at the time, the website shows.
Two phone calls to Galaxy Securities’s press office went unanswered yesterday. The China Securities Regulatory Commission didn’t immediately respond to faxed questions.
Even after receiving an ownership waiver, Galaxy Securities still needs CSRC approval for the planned IPO, the people said.
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