SHANGHAI-BASED Shenyin and Wanguo Securities aims to list in 2013 following a share swap deal in which the brokerage is now controlled by a unit of China's sovereign wealth fund.

The path to the planned listing has been cleared after Central Huijin Investment Co, a unit of the US$400 billion China Investment Corp, completed a share swap deal with Shanghai International Group. This deal made Huijin the controlling shareholder with 55.38 percent of Shenyin and Wanguo's shares, the China Securities Journal cited the brokerage's Chairman Ding Guorong as saying yesterday.

After the swap, the Shanghai International Group, owned by the Shanghai municipal government, also became the controlling shareholder of Guotai Junan, another local brokerage, with 45.09 percent of its shares.

The swap means both brokerages can be listed since China allows each listed firm to have only one controlling shareholder.

However no details of Shenyin and Wanguo's planned listing were released.

Shenyin and Wanguo made a net profit of 1.34 billion yuan (US$210.67 million) in the first 10 months of 2011 and had a 3.83 percent market share in stock and fund trading, ranking seventh in the domestic market.

Chinese brokerages have been waiting anxiously to list or seek a dual-listing in Hong Kong to expand their funding resources.

Guotai Junan and Haitong Securities Co, China's second-biggest publicly traded brokerage, are also seeking to list in Hong Kong.

Haitong resumed its plan to list in Hong Kong last week, with a potential offering at the end of the year at the earliest, Ming Pao newspaper said.

Source:shanghaidaily