Citigroup Inc launched its stockbroking operations in Malaysia today, moving closer to its aim of having equity sales and trading operations throughout Southeast Asia.
"It underscores our desire to play a wider role in the Malaysian capital markets...our extensive global reach will help facilitate further investment into Malaysia," said Citigroup's Asia Pacific chief executive Shirish Apte.
Save for Vietnam where Citigroup plans to buy a minority stake into a local broker, Apte said the financial services company's expansion into Southeast Asia was complete.
He did not name the potential target in Vietnam.
Emphasis on investing in Southeast Asia has grown, Asia Pacific head of equities Adrian Faure told reporters and there has been increasing demand from their clients to tap into regional emerging markets.
"Definitely. Hong Kong and China have had a tough year and we see rotation into the smaller markets," he said, adding that there was a danger of an overheating of the market. "The risk is that everybody has now got religion and the religion is emerging markets. I see everyday new funds coming into Asia, new funds trying to set up in Asia, so of course the risk here is that there's too much liquidity chasing up valuations."
Citi plans to be one of the top three foreign institutional brokers in Malaysia in three years. The bankging group has presently 11 bank branches in Malaysia and two offshore centres to facilitate trade transactions.
Malaysia has slipped off the radar screens of foreign investors who own just 21.2 percent of the market here, compared with 23.1 percent in 1998, according to data from the stock exchange.
The local brokerage operation has already hired three people and plans to hire three more.
"It underscores our desire to play a wider role in the Malaysian capital markets...our extensive global reach will help facilitate further investment into Malaysia," said Citigroup's Asia Pacific chief executive Shirish Apte.
Save for Vietnam where Citigroup plans to buy a minority stake into a local broker, Apte said the financial services company's expansion into Southeast Asia was complete.
He did not name the potential target in Vietnam.
Emphasis on investing in Southeast Asia has grown, Asia Pacific head of equities Adrian Faure told reporters and there has been increasing demand from their clients to tap into regional emerging markets.
"Definitely. Hong Kong and China have had a tough year and we see rotation into the smaller markets," he said, adding that there was a danger of an overheating of the market. "The risk is that everybody has now got religion and the religion is emerging markets. I see everyday new funds coming into Asia, new funds trying to set up in Asia, so of course the risk here is that there's too much liquidity chasing up valuations."
Citi plans to be one of the top three foreign institutional brokers in Malaysia in three years. The bankging group has presently 11 bank branches in Malaysia and two offshore centres to facilitate trade transactions.
Malaysia has slipped off the radar screens of foreign investors who own just 21.2 percent of the market here, compared with 23.1 percent in 1998, according to data from the stock exchange.
The local brokerage operation has already hired three people and plans to hire three more.
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