China Galaxy Securities (CGS) is expanding its investment banking team in Southeast Asia. CGS International, a subsidiary, plans to increase its team size from 30 to 50 people by next year, focusing on building stronger China-Southeast Asia relations. The company aims to support Chinese enterprises entering Southeast Asia, as well as facilitate deals such as dual listings and mid-market transactions, with a focus on values ranging from S$200 million to S$1 billion. CGS International has secured investment banking business licenses in Singapore, Malaysia, Thailand, and Indonesia, and is seeking a license to manage IPOs in Malaysia.

The expansion comes as Chinese financial services firms seek opportunities in Southeast Asia due to weak capital markets and slower deal-making in China and Hong Kong. Despite a decrease in China’s outbound investments into other regions, its investments in Southeast Asia increased by 27% in 2023. CGS International is also exploring other services, including wealth management, shariah-compliant financing, and prime brokerage, and is looking to expand further into Vietnam with established partners.