CLSA Premium Limited, a Hong Kong-based broker, has announced the decision to end its margin dealing business and focus on its new healthcare business, which it entered into in mid-2022.
The decision came after the company’s annual general meeting last week, in which shareholders voted unanimously on the proposed changes in the company’s business areas.
The notice posted by the company last week highlighted: “Since the group launched initial exploration for the healthcare business in mid-2022, the group has generally experienced (a) positive result.” “In the first quarter of 2023, the healthcare business contributed the vast majority of Group revenue and profit.”
faltering broker
CLSA, formerly known as KVB Kunlun, has been in trouble for years. Besides its headquarters in Hong Kong, the company also had a presence in Australia and New Zealand.
The CLSA’s New Zealand subsidiary was initially reported by the Kiwi regulator in 2014 for violations of its business practices. The regulator identified more loopholes in 2018, even after the broker made improvements. These breaches resulted in a NZ$770,000 fine to the CLSA’s New Zealand chapter for serious anti-money laundering violations after several additional license terms.
CLSA actually suspended operations in Australia and New Zealand last year. Since then, it has only offered margin dealing and bullion trading under the Hong Kong registered entity.
“The Board of Directors considered that there is a limited possibility of the Group’s margin dealing and bullion trading business (together referred to as the “Margin Dealing Business”) to obtain new customers and improve its performance. On this basis, the Board of Directors considered it possible to use the resources and efforts expended in the dealing business margin trading better in the healthcare business, and decided to suspend the operation of the margin dealing business.”
Earlier, CLSA evaded several liquidation requests made by one of its major shareholders, KVB Holdings, which believed that the broker showed an insufficient level of operations and was in a bad financial position.
CLSA Premium Limited, a Hong Kong-based broker, has announced the decision to end its margin dealing business and focus on its new healthcare business, which it entered into in mid-2022.
The decision came after the company’s annual general meeting last week, in which shareholders voted unanimously on the proposed changes in the company’s business areas.
The notice posted by the company last week highlighted: “Since the group launched initial exploration for the healthcare business in mid-2022, the group has generally experienced (a) positive result.” “In the first quarter of 2023, the healthcare business contributed the vast majority of Group revenue and profit.”
faltering broker
CLSA, formerly known as KVB Kunlun, has been in trouble for years. Besides its headquarters in Hong Kong, the company also had a presence in Australia and New Zealand.
The CLSA’s New Zealand subsidiary was initially reported by the Kiwi regulator in 2014 for violations of its business practices. The regulator identified more loopholes in 2018, even after the broker made improvements. These breaches resulted in a NZ$770,000 fine to the CLSA’s New Zealand chapter for serious anti-money laundering violations after several additional license terms.
CLSA actually suspended operations in Australia and New Zealand last year. Since then, it has only offered margin dealing and bullion trading under the Hong Kong registered entity.
“The Board of Directors considered that there is a limited possibility of the Group’s margin dealing and bullion trading business (together referred to as the “Margin Dealing Business”) to obtain new customers and improve its performance. On this basis, the Board of Directors considered it possible to use the resources and efforts expended in the dealing business margin trading better in the healthcare business, and decided to suspend the operation of the margin dealing business.”
Earlier, CLSA evaded several liquidation requests made by one of its major shareholders, KVB Holdings, which believed that the broker showed an insufficient level of operations and was in a bad financial position.