Haitong Securities Co., Ltd. (SHSE:600837) is a leading firm providing securities and futures brokerage, investment banking, asset management, proprietary trading, and direct investment services. We believe the securities industry in China is still in early stages of development which provides meaningful growth opportunities such as deeper penetration of capital markets and the development of more sophisticated products. Trading volumes have fallen in response to a government crackdown on market misconduct, but we believe this headwind will prove temporary. In addition, should reforms move forward, we believe Haitong is well positioned to increase its participation in the financing of private and public enterprises, which is currently dominated by the state-owned bank sector.
From Baron Insights: Banking on Growth in International Financials.
